# How to Refund a Paid Invoice in Xero

> To refund a paid invoice, go to Business in Xero, select Invoices, and open the reconciled credit note. Scroll to the Make a Cash Refund section, enter the required details including Amount, Date, Bank Account, and Reference, and click Add Refund to instantly process the payment return.

Canonical: https://livedemo.ai/tutorials/how-to-refund-a-paid-invoice-in-xero/
Apps: Xero
Updated: 2026-10-05
Interactive demo: https://story-api.livedemo.ai/workspaces/62255d3d3304f17b8f5e2d03/stories/692a4bd0ab56e05a00ff73ac/preview?step=1

## Steps

1. On Xero's main dashboard, head over to the top menu bar and click 'Business'.
2. Choose 'Invoices' from the list of options.
3. After that, find and open the credit note that has been reconciled with the invoice payment you wish to refund.
4. Scroll down to the Make a Cash Refund section, then fill out the input fields with the required details, particularly the Amount, Date, Bank Account, and Reference.
5. Once done, click 'Add Refund' to proceed.
6. After completing these steps, the paid Xero invoice will be refunded instantly.