Refund Letter for Overpayment

In the business world, different companies provide their services to their customers, and then customers have to pay in return. This is a simple process that takes place around the world in almost the same way. However, at times, the customer sends extra money to the seller.

What is a refund letter for overpayment?

The seller writes the refund letter for overpayment when he receives an excessive amount from the customer. This letter informs the customer that he has sent extra money and that the seller is ready to make a refund.

When to write the refund letter for overpayment?

There are some situations in which the seller is compelled to write the refund letter. Some of these are mentioned below:

  1. When the buyer does not know the actual amount and sends more amount than what he was supposed to send.
  2. When the company has revised the charges and there is a reduction in charges and the amount of tax applied on it and the buyer is not aware of it and sends the money according to the old policy of the company.
  3. When the customer accidentally sends the excess money and then writes to the seller in order to ask for a refund.

How to write to the customer about a refund:

When you are writing to the customer informing him about the refund, you should keep the following points in mind:

Discuss the reception of money from customer

The first thing that you should tell your customer is that you have received the money he has sent. Mention the amount you have received. Once you are finished talking about the reception of the money from the customer, you can proceed to the next step.

Tell the customer about the overpayment from his account

Inform the customer that he/she has sent you an extra amount. Now, it is important to specify the reason. If the reason is the charges revised by the company, mention it in the letter. If you think that the customer has made a mistake, do talk about it. To prove it, you can share a copy of the invoice that you sent to him/her.

Tell your willingness to make a refund

Inform the customer that your company is ready to make a refund. If the customer has any other option such as adjustment of the excess amount in the next bill, let him know about it. When you provide more than one option to your customer, you should ask him to contact you and let you know which option he has decided to go with.

Mention what will happen if the customer does not respond

Also mention in the letter that if the customer does not reply, you will refund the money without waiting for a long time for the customer to choose from the available options.

Specify the date by which you will refund the money

It is recommended to mention the date by which the refund from your company will be made. The soon you make the refund, the better impression you create on the customer.

The sample letter written to the customer for overpayment because of revised charges of the company has been given below. Seeing this letter will help you know how you can draft a letter of your own and what format you can use.

Sample Letter

Details of the recipient
Name
Contact details
Address

Subject: [Write subject line here]

Dear Mr. ABC,

We have received the amount of 100$ to our account that you have sent to us. We would like to say thanks to you for this transaction. However, it is to inform you that the company has reversed some charges and according to our revised charges, you have sent 50$ extra to our account. We have considered the amount sent by you as an overpayment.

We are ready to send you back the refund of the extra 50$. However, if you want to adjust this excess money in your next month’s bill, you can let us know about it. Please feel free to call us and if you have any queries in your mind regarding this matter.

In case you don’t respond to us, we will refund you the excess money by 15th April 20XX.  

Regards

Name of the sender

Signatures

_________


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