Overview

Refunds happen in catering—whether a customer cancels last-minute, downsizes their order, or there's an adjustment to pricing. CaterZen makes it easy to process refunds while keeping your accounting records accurate and your customers informed.


In this article, we’ll cover the best and fastest way to refund an order that has already been paid—whether you need to refund the entire order or adjust specific menu items. While there are multiple ways to process a refund in the system, this guide will walk you through the most efficient method. 

  1. Refunding an Entire Order or Partial Payment – For cancellations or changes after payment.
  2. Refunds Due to Menu Adjustments – When removing items or modifying pricing after the invoice is finalized.


Important Note on Credit Card Refunds

If a credit card payment has not yet been processed/settled by your bank, you cannot issue a refund through the original order. Instead, you’ll need to wait until the original payment has settled or issue the refund as a Credit Without a Transaction (explained below) and manually refund through your Payment Gateway. 

If the payment has been processed, you can issue the refund directly through the order.

Scenario 1: The Customer Cancels or Requests a Refund

Example Situation:

Imagine this: A corporate client booked a lunch catering for 50 people, but their event was suddenly canceled due to unforeseen circumstances. They’ve already paid in full by credit card. They call and ask for a refund. No problem—CaterZen makes it simple. 


How to Process the Refund:

Step 1: Find the Order

  1. Go to the Accounting Tab → Click Invoices/Catering Tickets.
  2. Search for the order by date, customer name, or invoice number.
  3. Locate the order you wish to refund with the original payment.
  4. Click the blue Create/Edit Payments/Refunds button above the existing payment.

  

Step 2: Issue the Refund

  1. A pop-up will appear displaying any payments associated with the order. Click Create a New Refund to proceed.   
  2. Enter the refund amount (e.g., -$1527.25).
  3. Choose the original payment method (credit card, check, or cash).
  4. If refunding a credit card, ensure that the box is checked to be processed through your payment gateway.
  5. If refunding a credit card, you must choose a previous transaction to refund against. 
  6. Enter the refund date for your records. Always record the date you are processing the actual transaction, not the date of the event.
  7. Enter any Notes or Comments related to the refund. A best practice is to include the name or initials of the employee who initiated the refund and the reason for the refund for clear record-keeping. 
  8. Click Save This Payment.
  9. You will be returned to the Payments Screen, where all payments and refunds for that order will be displayed, including the new refund you just processed.


Step 3: Notify the Customer

  • Send the updated invoice reflecting the refund.
  • Let them know that credit card refunds typically take 3-5 business days to reflect on their statement though Amex transactions may take a bit longer. 


Pro Tip:

If the order was booked by a repeat customer, consider offering a future credit instead of a refund to keep revenue in-house. See the following article about Credit Memos for more details: Understanding Credit Memos

Scenario 2: Issuing a Credit Without a Transaction

If the customer paid by credit card, but the transaction has not yet been processed by your bank, you must issue the refund differently. Credit Card networks require a previous transaction to refund a credit card to prevent fraud, comply with banking regulations, and ensure funds are returned to the original card. This also helps with chargeback protection, secure fund tracking, and merchant account compliance. Without a prior charge, refunds must be processed manually through other methods. 


How to Issue a Credit Without a Transaction

  1. DO NOT attempt to refund through the order.
  2. Instead, issue the refund or void directly through your payment processor (e.g., Braintree or Authorize.net).
  3. Manually record the refund in CaterZen: 
    • Follow the same refund steps as above.
    • Do not check the box to refund through your gateway.
  4. Add a note in the Comments Box detailing how the refund was handled through your payment processor for tracking purposes.   


Scenario 3: The Customer Adjusts Their Order After Payment

Example Situation:

You’re catering a backyard wedding, and the customer decides to remove the brownies three days before the event, reducing the invoice by $128.60.


How to Process the Refund:

Step 1: Adjust the Order

  1. Locate the order you need to refund. 
  2. In the Choose a function dropdown, click Open for Editing   
  3. Remove the brownies or adjust the price. Once removed, you will noticed your subtotal, tax and total will adjust. Click Save Changes to this Order.   
  4. A pop-up will appear asking you how you wish to adjust the invoice. Click the red Adjust the Total Due on this Invoice and Issue a Refund button.    

    Step 2: Process the Refund

    1. A Payment/Refund pop-up box will appear, where you'll complete the refund details.
    2. Select the original payment method.
    3. If processing through your credit card payment gateway, ensure the box is checked and select the previous transaction to apply the refund to.
    4. Be sure to include the date you are initiating the refund and any relevant details for record-keeping. 
    5. Save the refund.      
    6. You will be returned to the Payments Screen, where all payments and refunds for that order will be displayed, including the new refund you just processed.       
    7. If you check the order in the Accounting screen, you'll see both the original payment and the refund reflected.  



Step 3: Send the Updated Invoice

  • Generate and email the revised invoice to the customer so they have updated records.

Viewing Your Refunds

  1. Click on the Accounting tab.
  2. Select the Sales Journal Report link.   
  3. Choose your date range and location and click Apply Filters.
  4. On the right and left, you will see a line for Refunds.
    • Click on the Refunds line to expand and view more details.


Viewing a Complete List of Refunds:

  1. Go to the Accounting tab.
  2. Click on the Refund link.   
  3. Select your date range and location.
  4. (Optional) Search by location, customer, or company for specific refunds.
  5. Click Apply Filters to generate the list.
    • Your refunds list will appear below with all relevant details.

Important Notes

  • Credit Card Refunds: Depending on your payment gateway, refunds may take 3-5 business days to appear on the customer’s statement.
  • Cash or Check Refunds: If issuing a refund outside CaterZen, be sure to record it in the system for tracking.
  • House Accounts: If the order was on a house account, adjust the balance accordingly instead of issuing a refund.


Key Takeaways for Caterers

✔ Keep Refunds as House Credits (Credit Memos) When Possible – It helps retain revenue for future business.
✔ Always Update Invoices – Ensures financial accuracy and customer trust.
✔ Use Refunds Strategically – If a big event is canceled last minute, consider a deposit policy to protect against loss.


By handling refunds smoothly and proactively, you’ll maintain customer loyalty while keeping your catering business running efficiently.