Inform a Customer of an Overpayment • Letter Templates and Guides

How to write this letter:

1Carefully explain how much the customer has overpaid.
2Inform the client how you plan to correct the error.
3Offer additional service.


This brief but important letter notifies a customer that he or she has overpaid you. It can serve as a very good customer relations letter. Avoid any hint of criticism.

Example Letter #1


There has been an error in your favor! You overpaid your account by $85.00 last month, and we have credited this amount to your account to be used toward future purchases. If you prefer, however, we can send you a refund check. Just call 555-5555 and our customer service representative will honor your request.

Example Letter #2


Thank you for the payment we recently received on your account. Since the balance due was $75.00, your payment of $100.00 resulted in a credit of $25.00. We will apply this credit to future purchases, or you can receive a refund by calling 555-5555.

We appreciate your business and count you as one of our valued customers. If you have any questions about this matter, or if we can assist you further, please call.

Example Letter #3


Thank you for your most recent payment of $100. You might be happy to learn that at the time of this payment your balance was only $27.55, leaving a $72.45 overpayment. Our bookkeeper, Jane Doe, has credited this amount to your account, and your next billing statement will reflect this adjustment. If you would prefer, however, we would be glad to send you a refund check in the amount of $72.45. Please telephone Jane if you wish to have this amount refunded. I have enclosed a copy of your last billing statement in case you did not receive it. Jane Doe will be glad to answer any questions you may have about our billing procedures. She may be reached at 555-5555.

Example Letter #4


We have negotiated a favorable change in the prices of ingredients and are passing the savings on to you. Doe Bakery's usual order of 25 drums of our Invincible Cream filling now costs $208.00. Your advance payment of $223.00 was received and the difference credited to your account. I have enclosed an updated price list on all of our baking supplies. Please call if you would like to take advantage of these other great prices.


Inform the client how you plan to correct the error.

Example Sentences for Step 2

Example Phrases for Step 2