"Refunded card sales: which processing costs are left?"
"Source","https://bluefinchadvisors.com/blog/refunded-card-sales-retained-processing-cost-profit"
"Basis","This planning scenario uses the values entered. It is not an industry benchmark or a quote."

"Inputs","Value","Unit"
"Original card sales before refunds","50000","currency"
"Revenue reversed by completed refunds","5000","currency"
"All original processing expense","1500","currency"
"Original fees attributable to refunded sales","150","currency"
"Confirmed original-fee credits","0","currency"
"New fees for processing the refunds","25","currency"
"Baseline profit before these refunds","8000","currency"
"Recognized reversal of associated job costs","2000","currency"
"Additional nonpayment return costs","100","currency"

"Results","Value","Unit"
"Revenue after entered refunds","45000","currency"
"Payment costs attached to the refunded sales","175","currency"
"Complete processing expense after refund adjustments","1525","currency"
"Profit after the refund scenario","4875","currency"

"Calculation detail","Value","Unit"
"Profit change from the refund scenario","-3125","currency"
"Processing expense divided by original card sales","3.05","percent"
"Processing expense divided by revenue after refunds","3.3888888888888893","percent"
"Refunded share of original card revenue","10","percent"

"Assumptions"
"Starting figures are fictional planning examples, not a quote, verified outcome or small-business margin benchmark."
"This is a matched-cohort same-period management scenario. Do not mix prior-period refunds with current sales without an accountant-approved reconciliation."
"Fee credits and new refund charges are entered from actual terms and records. The fictional zero credit and $25 charge are not BlueFinch pricing or a universal provider policy."
"Original processing fees are already deducted in baseline profit. Only actual fee credits and new charges change that expense in the bridge."
"The total expense divided by post-refund revenue is a cost ratio, not evidence that a processor increased its contractual rate."

"Result notes"
"Negative differences remain visible. A negative profit denominator gives a signed mathematical ratio, not a share of positive profit. Zero denominators are unavailable."
"A retained processing expense does not determine what the customer is legally owed. Confirm the customer refund separately."

"Sources"
"IRS: why businesses should keep records","https://www.irs.gov/businesses/small-businesses-self-employed/why-should-i-keep-records"
"Stripe: refund and cancel payments","https://docs.stripe.com/refunds"
"Stripe: credit-card payment processing fee components","https://stripe.com/resources/more/credit-card-processing-fees-explained"