If a customer processes a payment on the wrong credit card and requests to use a different card instead, you can easily correct this. However, because the transaction has already been settled through the bank, the process requires a few specific steps to keep both your payment processor and your internal accounting accurate.


Here is the step-by-step workflow to refund the original card and charge the new one.


The Workflow at a Glance

To successfully switch cards, you must handle the actual refund through your merchant account, reset the invoice in your system, and then collect the new payment.


Step 1: Refund Card via Processor ➔ Step 2: Delete Payment from Invoice ➔ Step 3: Charge New Card


Step-by-Step Instructions


Step 1: Issue the Refund

Because the transaction occurred in the past (e.g., yesterday), the funds have already been processed.

  1. Log into your payment gateway/payment processor.

  2. Locate the transaction from yesterday and issue a refund to the original card.

Step 2: Reset the Invoice to "Unpaid"

Once the money has been refunded back to the original card, you need to remove the payment from the invoice so it is open again and you can charge the new card.

  1. Open the Active Invoices page and find the invoice in question.

  2. Click Edit on the invoice.

  3. Locate the recorded payment.

  4. Click the Waste Basket (Delete) icon next to the recorded payment.

⚠️ Important: Deleting the payment removes the "Paid" status from the invoice, shifting it back to Unpaid. This allows the system to accept a brand-new payment.

Step 3: Charge the New Card

Now that the invoice is unpaid and you have already updated the customer's profile with their new card info, you can pay the new invoice. 

  • Select the Invoice on the Active Invoices page and click the Charge Card/ ACH button to charge the customer's newly updated card.


Crucial Accounting Note: "Delete" vs. "Refund" in the System

It is important to understand the difference between hitting Delete and logging a Refund on an invoice:

  • Deleting a payment (What to do here): This completely detaches the payment history from the invoice, making the invoice show as Unpaid. Use this when you do expect to collect the money again on a different card.

  • Refunding an invoice in the system (What NOT to do here): Marking an invoice as "Refunded" tells the system that the transaction is finalized, but the money was given back. The invoice will stay closed, showing as Paid but Refunded, meaning the system thinks you do not expect to collect another payment for it.