@cambreco I'm sorry you had to go through all of this.  I appreciate you having persisted on getting this resolved online.  Otherwise, it would not help anyone else.  I see form what others have stated, including @EmilyLaney that you can issue a partial refund by inputting the amount into the amount field found in the search area.  I get what they are saying and believe it works, but it makes so little sense, that I'm unwilling to take a chance an end up fully refunding my client and then having to ask for the money back.  I rather at this point just ask them for their credit card information.

@Candice C  I have attached a screenshot of how it SHOULD be. 

Step 1 - Search for transaction to reverse

Step 2 - Select transaction to reverse

Step 3 - Not return to search area to enter partial amount (that makes no sense)...instead, have a real Step 3 where you enter a clearly labeled amount to be refunded.

This would take away the confusion and stop everyone from having to continue ask on the forums how a partial refund should be processed.  Please share this with the product development team.  I also see that Refunds from QB Payments have been recently added to QBO (May 2022).  However, they have again failed to allow partial refunds.  Please also share the need for that with that product development team as well.  

QB Payments is important to Intuit and I know if the proper people knew about this, they'd want to get it fixed rather than have their customers have bad experiences with it.

Thank you all.