Credit card terminals (and online portals) are designed to accept credit card payments and issue refunds .
This creates an opportunity for a dishonest employee to issue fraudulent refunds to their own credit or debit card.
Making an unauthorized credit card refund is a common embezzlement scheme that can be easily prevented.
Do this each month.
Examine your monthly Merchant Account Statement to look for “refunds”.
These will be listed in a separate column or item(s) on your monthly merchant statement.
If you see refunds listed on the monthly statement. Print a report from your practice management software that shows the refunds posted to patient ledgers for the same month.
Check each credit card refund; the dates and amounts to make sure each one is legitimate.
For a more detailed explanation about “refunds” read these posts: