A document issued by the merchant indicating that a refund or credit was provided to the cardholder's account.
When customers receive refunds or account credits, the documentation trails often lead back to credit memos. While easily overlooked, these forms provide critical proof of payment adjustments. Understanding the role of credit memos helps merchants and consumers track reversals.
A credit memo is a document issued by a seller to confirm they have credited a customer's account. Credit memos serve as receipts for non-cash refunds and warranties when no physical product is returned.
Common credit memo triggers include:
Credit memos formally record these financial exchanges.
For businesses, keeping credit memos helps:
For customers, receipts like credit memos provide:
The paperless world still requires paperwork like credit memos to record financial reversals. With clear documentation, all parties can track credits and account for complex transactions confidently.