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💵 What Is the Net Payment Amount I Should Refund?

Learn best practices for processing refunds in Gather.

Sarah Schmid avatar
Written by Sarah Schmid
Updated this week

When issuing a refund in Gather, the Net Payment Amount refers to the original subtotal paid by the customer, excluding the convenience fee.

Net Payment Amount typically means:

✅ The cost of the goods and services

✅ Any discounts added (if applicable)

✅ Tax

❌ Not the the convenience fee.

This represents what the family actually paid toward the funeral bill - not including any processing costs.

Understanding how to refund properly ensures your accounting stays clean and your customer interactions are fair and transparent.


🧮 Example: Understanding Net Payment

Let’s say a customer paid:

  • Original Payment Subtotal: $1,702.00

  • Convenience Fee: $68.08

  • Original Payment Total: $1,770.08

The Net Amount to Refund is $1,702.00, because that’s the amount applied to the services provided. This is typically the amount you should refund unless you're intentionally choosing to also refund the convenience fee.


⚠️ What About the Convenience Fee?

You have the option to refund the convenience fee — but it’s important to understand how that affects your bottom line:

  • If you refund the fee: The full amount ($1,770.08) is returned to the customer. However, Gather does not refund the portion of the fee it collects for processing, so that amount will be deducted from your funeral home's payout.

  • If you don’t refund the fee: The customer receives only the net amount ($1,702.00), and the funeral home does not absorb the processing cost.

💡 Reminder: Gather’s portion of the convenience fee is non-refundable. Refunding it means your business is covering that amount out of pocket.


✅ Best Practice

We recommend refunding only the net subtotal unless you have a compelling reason to refund the full amount (e.g., for customer service purposes). This prevents your funeral home from unintentionally absorbing processing fees.


➗ How to Handle Partial Payments When Refunding

If the original payment was partial, you’ll still apply the same logic — refund the portion of the subtotal that corresponds to the amount you're returning, and then decide whether to include any of the convenience fee.

Example: Partial Refund on a Partial Payment

Let’s say a family member made a partial payment of $850 toward a $1,702.00 subtotal, with a convenience fee of $34.00. The total they paid was $884.00.

Now you’re refunding part of that payment — maybe $425.

Here’s how to handle it:

  • Set the Net Amount to Refund to $425

  • Do not check the box to refund the convenience fee unless you plan to refund a portion of it too

  • Record the refund method (card, check, etc.)

  • Final refund will show:

    • Refund Subtotal: $425

    • Refund Convenience Fee: $0 (if not selected)

    • Refund Total: $425

If you do choose to refund part of the convenience fee, you can enter a prorated portion manually based on the amount you're returning.


🔍 Summary

Scenario

Refund Amount

Fee Refunded?

Impact to Funeral Home

Full refund, no fee

$1,702.00

Customer receives subtotal only

Full refund, fee included

$1,770.08

Fee deducted from your payout

Partial refund, no fee

e.g., $425.00

Clean refund with no fee loss

Partial refund, with prorated fee

e.g., $425.00 + $10.00

Fee portion deducted


💬 Need Help?

If you're unsure how much to refund or how to handle a partial payment with fees, reach out to our support team. We’re here to help ensure your refunds are processed accurately and fairly.

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