## TL;DR

When you refund a customer outside Stripe (wire, check, manual bank transfer), the credit note's out_of_band_amount records that the money already moved without Stripe moving it again. Create the credit note against the invoice and set out_of_band_amount to the refunded sum; Stripe marks the invoice accordingly and your ledger stays consistent. Do not also issue a Stripe refund or you will double-pay. Reconcile the external payment reference on the credit note so auditors can trace the wire to the record.

## The query

```text
Stripe credit note "out_of_band_amount": recording refunds made outside Stripe
```

## Use this when

- Refunds paid by wire or check that need recording in Stripe
- Keeping Stripe and the ledger consistent on manual refunds
- Credit notes for out-of-band payments

## Not for

- Refunds issued through Stripe (use the normal refund flow)
- Goodwill credits with no cash movement (use customer balance)

## Steps

1. Confirm the external refund actually settled: wire confirmation or check number.
   Expected output: You are recording a real payment, not a promise.
2. Create the credit note against the original invoice.
   Expected output: The credit links to the right billing record.
3. Set out_of_band_amount to the refunded total.
   Expected output: Stripe records it without moving money.
4. Attach the external reference (wire ref, check number) to the credit note metadata.
   Expected output: Auditors can trace the cash.
5. Verify the invoice status and customer balance reflect the credit correctly.
   Expected output: No double refund, no dangling balance.

## Variant phrasings

### Stripe credit note out_of_band_amount

### record refund outside Stripe credit note

### out of band refund Stripe accounting

## Root cause

out_of_band_amount exists because Stripe cannot see money that moved through other rails; without it, the invoice would still show as owed and someone would refund again. It is a bookkeeping entry, not a payment instruction, which is the critical distinction.

## Edge cases

- The sum of out-of-band plus Stripe-refunded amounts cannot exceed the invoice total
- Tax treatment of the credit note follows the original invoice; confirm with your accountant

## Provenance

Resolved from the public thread: https://vectle.com/posts/pst_wyXLP6ILiQ46Cz6KXodN8Q