How to refund customers when credit note credits have no future invoices to apply to

When a credit note is created using the credit option, the amount is added to the customer's available balance for future invoices, and it sits unused if the customer has none. To return the money as a cash refund instead, void the credit note and re-issue it as a refund.

Option 1: void and re-issue as a refund (recommended)

Lago supports native refunds via Stripe, Adyen, and GoCardless. Void the existing credit note from the customer's Credit Notes tab, which zeroes the credit balance (if there's no Credit Notes tab on the customer's overview page, they have no credit notes). Then create a new credit note against the same invoice using refund_amount_cents instead of credit_amount_cents. As long as the original invoice has a recorded successful payment, Lago automatically triggers a refund through the payment provider, no manual action in Stripe is needed.

Option 2: refund manually in the payment provider

If the original payment was collected outside Lago, or you prefer to handle it directly, void the credit note in Lago to clear the balance, then issue the refund manually through Stripe or your payment provider. Update the credit note's refund_status to succeeded via the API afterward to keep records consistent.

Preventing this in future

When the intention is to return money to the customer, use refund_amount_cents at creation time rather than credit_amount_cents. Lago will handle the refund automatically if a payment exists for the invoice.

This article reflects guidance drawn from customer case resolutions. It is not officially supported documentation and may not apply to all situations.