Refund and Cancellation Policy

Refund and Cancellation Policy Template

Refund and Cancellation Policy Template

Looking for a return and refund policy sample?

Looking for a return and refund policy sample?

Download our free PDF today.

cancellation policy template

Set clear refund and cancellation terms. Protect your business and download our template today.

Our free template comes with 7 refund and cancellation policy examples. Whether you’re in a salon, dental office, or hosting an event, you’ll find templates to help you set professional policies. Download it and easily customize it to protect your business and manage customer expectations.

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How to create a clear and fair refund and cancellation Policy

Creating a return, refund, and cancellation policy that’s both clear and fair comes down to transparency and simplicity. Lay out exactly how long customers have to return an item or cancel a service, what condition the item needs to be in, and whether there are any fees involved. Let them know how they’ll get their money back—store credit, original payment, or something else—and make the process easy to follow. The goal is to set expectations upfront so there are no surprises, making life easier for both you and your customers. And most importantly, make sure your policy is easy to find—if customers have to dig for it, it’s not doing its job.

How should my refund and cancellation policy differ based on my industry?

Cancellation policies vary by industry to address unique customer expectations, financial risks, and service structures. Below are industry-specific considerations to ensure your policy is clear and effective:

Industry Refund and Cancellation Policy Considerations

Retail & eCommerce
  • Clearly outline return windows (e.g., 30-day return policy, final sale items).
  • Specify refund types: full refund, store credit, exchange-only.
  • Address damaged or defective goods with a return authorization process.
  • Define cancellation rules for pre-orders, custom orders, and backorders.

Hospitality & Travel

(Hotels, Airlines, Vacation Rentals, Car Rentals, Cruises)
  • Use tiered cancellation fees based on notice time (free cancellation within 24 hours, 50% refund after 48 hours).
  • Establish non-refundable booking categories for discount rates.
  • Define no-show penalties and early departure fees.
  • Include policies for force majeure (natural disasters, pandemics, emergencies).

Health, Beauty & Wellness

(Salons, Spas, Massage Therapy, Medical Aesthetics, Chiropractors, Dentists, Personal Trainers)
  • Require 24-48 hours’ notice for cancellations or rescheduling.
  • Implement no-show fees or deposit forfeitures for missed appointments.
  • Differentiate policies for membership-based services vs. one-time bookings.
  • Outline refund rules for prepaid packages, gift cards, or subscription plans.

Professional Services

(Consultants, Attorneys, Tutors, Therapists, Accountants, Marketing Agencies)
  • Set advance notice for cancellations (24 hours, 48 hours, 7 days).
  • Establish non-refundable retainers, deposits, or hourly minimums.
  • Include rescheduling fees or limitations on last-minute changes.
  • Clarify refund policies for unfinished work, strategy sessions, digital deliverables.

Event Planning & Ticketed Events

(Weddings, Concerts, Conferences, Catering, Party Rentals, DJs, Photographers)
  • Differentiate between deposit refunds, partial refunds, and non-refundable fees.
  • Specify cancellation deadlines for full or partial refunds.
  • Include contingencies for weather-related cancellations, vendor cancellations, or postponements.
  • Define rescheduling policies and fees for changing event dates.

Subscription & SaaS

(Streaming Services, Software-as-a-Service, Membership Platforms, Online Courses, Digital Tools)
  • Provide clear auto-renewal and cancellation cut-off dates.
  • Define whether refunds are prorated, full, or non-refundable.
  • Address mid-term cancellations for annual or monthly subscriptions.
  • Explain data retention or access policies after cancellation.

Healthcare & Telemedicine

(Doctors, Dentists, Telehealth, Mental Health Services, Physical Therapy)
  • Require advance cancellation notice for medical appointments and therapy sessions.
  • Establish missed appointment fees to discourage last-minute cancellations.
  • Clarify refund policies for prepaid treatment plans, prescription services, or wellness programs.
  • Specify insurance reimbursement rules for canceled visits.

Fitness & Recreation

(Gyms, Yoga Studios, Sports Leagues, Personal Training, Dance Classes)
  • Outline drop-in vs. membership cancellation rules.
  • Define early termination fees for gym contracts or fitness memberships.
  • Explain refund policies for prepaid class packages or season passes.
  • Address make-up sessions or credits for canceled classes.

Auto & Transportation

(Car Rentals, Driving Schools, Auto Repairs, Limo Services, Rideshare, Moving Services)
  • Specify cancellation windows for deposits and bookings.
  • Address refundability of security deposits and prepayments.
  • Establish policies for last-minute cancellations or no-shows.
  • Define fees for modifications, rescheduling, or late returns.

Education & Training

(Universities, Online Courses, Workshops, Coaching, Certification Programs)
  • Outline refund policies for course withdrawals, program cancellations, or class reschedules.
  • Define eligibility for partial refunds based on completion percentage.
  • Address non-refundable fees for enrollment, registration, and materials.
  • Explain policies for missed coaching sessions or rescheduled workshops.

Manufacturing & B2B Services

(Wholesale, Printing, Custom Orders, SaaS for Enterprises, Freight & Logistics, Supply Chain Management)
  • Establish cancellation policies for custom, made-to-order, or bulk production.
  • Define refund policies for defective products, supplier errors, or late deliveries.
  • Address penalties for contract terminations or service agreement cancellations.
  • Specify restocking fees for returned or canceled bulk orders.

Home Services & Contractors

(Plumbers, Electricians, HVAC, House Cleaning, Pest Control, Landscaping, Moving Companies)
  • Require deposit payments and define refund eligibility.
  • Establish cancellation windows for same-day, 24-hour, or week-out bookings.
  • Address rescheduling fees and no-show penalties for last-minute changes.
  • Clarify non-refundable fees for special-order materials, project planning, or emergency services.

Learn more

How to create a clear and fair refund and cancellation Policy

Creating a return, refund, and cancellation policy that’s both clear and fair comes down to transparency and simplicity. Lay out exactly how long customers have to return an item or cancel a service, what condition the item needs to be in, and whether there are any fees involved. Let them know how they’ll get their money back—store credit, original payment, or something else—and make the process easy to follow. The goal is to set expectations upfront so there are no surprises, making life easier for both you and your customers. And most importantly, make sure your policy is easy to find—if customers have to dig for it, it’s not doing its job.

How should my refund and cancellation policy differ based on my industry?

Cancellation and refund policies vary by industry to address unique customer expectations, financial risks, and service structures. Below are industry-specific considerations to ensure your policy is clear and effective:

Retail & eCommerce

  • Clearly outline return windows (e.g., 30-day return policy, final sale items).
  • Specify refund types: full refund, store credit, exchange-only.
  • Address damaged or defective goods with a return authorization process.
  • Define cancellation rules for pre-orders, custom orders, and backorders.

Hospitality & Travel

(Hotels, Airlines, Vacation Rentals, Car Rentals, Cruises)

  • Use tiered cancellation fees based on notice time (free cancellation within 24 hours, 50% refund after 48 hours).
  • Establish non-refundable booking categories for discount rates.
  • Define no-show penalties and early departure fees.
  • Include policies for force majeure (natural disasters, pandemics, emergencies).

Health, Beauty & Wellness

(Salons, Spas, Massage Therapy, Medical Aesthetics, Chiropractors, Dentists, Personal Trainers)

  • Require 24-48 hours’ notice for cancellations or rescheduling.
  • Implement no-show fees or deposit forfeitures for missed appointments.
  • Differentiate policies for membership-based services vs. one-time bookings.
  • Outline refund rules for prepaid packages, gift cards, or subscription plans.

Professional Services

(Consultants, Attorneys, Tutors, Therapists, Accountants, Marketing Agencies)

  • Set advance notice for cancellations (24 hours, 48 hours, 7 days).
  • Establish non-refundable retainers, deposits, or hourly minimums.
  • Include rescheduling fees or limitations on last-minute changes.
  • Clarify refund policies for unfinished work, strategy sessions, digital deliverables.

Event Planning & Ticketed Events

(Weddings, Concerts, Conferences, Catering, Party Rentals, DJs, Photographers)

  • Differentiate between deposit refunds, partial refunds, and non-refundable fees.
  • Specify cancellation deadlines for full or partial refunds.
  • Include contingencies for weather-related cancellations, vendor cancellations, or postponements.
  • Define rescheduling policies and fees for changing event dates.

Subscription & SaaS

(Streaming Services, Software-as-a-Service, Membership Platforms, Online Courses, Digital Tools)

  • Provide clear auto-renewal and cancellation cut-off dates.
  • Define whether refunds are prorated, full, or non-refundable.
  • Address mid-term cancellations for annual or monthly subscriptions.
  • Explain data retention or access policies after cancellation.

Healthcare & Telemedicine

(Doctors, Dentists, Telehealth, Mental Health Services, Physical Therapy)

  • Require advance cancellation notice for medical appointments and therapy sessions.
  • Establish missed appointment fees to discourage last-minute cancellations.
  • Clarify refund policies for prepaid treatment plans, prescription services, or wellness programs.
  • Specify insurance reimbursement rules for canceled visits.

Fitness & Recreation

(Gyms, Yoga Studios, Sports Leagues, Personal Training, Dance Classes)

  • Outline drop-in vs. membership cancellation rules.
  • Define early termination fees for gym contracts or fitness memberships.
  • Explain refund policies for prepaid class packages or season passes.
  • Address make-up sessions or credits for canceled classes.

Auto & Transportation

(Car Rentals, Driving Schools, Auto Repairs, Limo Services, Rideshare, Moving Services)

  • Specify cancellation windows for deposits and bookings.
  • Address refundability of security deposits and prepayments.
  • Establish policies for last-minute cancellations or no-shows.
  • Define fees for modifications, rescheduling, or late returns.

Education & Training

(Universities, Online Courses, Workshops, Coaching, Certification Programs)

  • Outline refund policies for course withdrawals, program cancellations, or class reschedules.
  • Define eligibility for partial refunds based on completion percentage.
  • Address non-refundable fees for enrollment, registration, and materials.
  • Explain policies for missed coaching sessions or rescheduled workshops.

Manufacturing & B2B Services

(Wholesale, Printing, Custom Orders, SaaS for Enterprises, Freight & Logistics, Supply Chain Management)

  • Establish cancellation policies for custom, made-to-order, or bulk production.
  • Define refund policies for defective products, supplier errors, or late deliveries.
  • Address penalties for contract terminations or service agreement cancellations.
  • Specify restocking fees for returned or canceled bulk orders.

Home Services & Contractors

(Plumbers, Electricians, HVAC, House Cleaning, Pest Control, Landscaping, Moving Companies)

  • Require deposit payments and define refund eligibility.
  • Establish cancellation windows for same-day, 24-hour, or week-out bookings.
  • Address rescheduling fees and no-show penalties for last-minute changes.
  • Clarify non-refundable fees for special-order materials, project planning, or emergency services.

FAQs

FAQs

Refund policies aren’t universally required by law in all countries, but many businesses find it essential for customer trust and to comply with consumer protection laws. In some regions, like the EU or specific U.S. states, there are rules about offering refunds, especially for online purchases. So, while not every business must have one, it’s a good practice to have a clear refund policy to avoid legal trouble and keep customers happy.

Some industries, particularly those with highly perishable goods or services, often don’t allow refunds. For example, most travel-related industries, like airlines or hotels, or ticket-based services like concerts or events, usually have strict no-refund policies. Digital products, like software or downloads, also tend to be non-refundable because they can be used immediately after purchase. The nature of these businesses makes it difficult to offer refunds.

A solid refund policy should clearly state the time frame for returns (like 30 days), what items are eligible for a refund, and whether customers will get their money back, a store credit, or an exchange. It should also explain the process for initiating a refund, such as whether the product needs to be returned and in what condition. Also, including details about who covers the return shipping or if restocking fees apply is important for transparency.

The duration of a refund policy depends on your business and the products you sell, but typically, it ranges from 14 to 30 days. For higher-cost or more specialized items, you might offer a longer period to allow customers time to assess the purchase. Just remember, the more generous you are with your refund window, the better the chances are your customers will feel confident making a purchase.

If a customer isn’t happy with a purchase and your refund policy isn’t clear or isn’t honored, they might turn to their credit card company to dispute the charge (aka a chargeback). This process can be costly and time-consuming for businesses. A clear, fair refund policy can help reduce chargebacks, as customers are more likely to go through your process first instead of jumping straight to their card issuer.

Refund policies aren’t universally required by law in all countries, but many businesses find it essential for customer trust and to comply with consumer protection laws. In some regions, like the EU or specific U.S. states, there are rules about offering refunds, especially for online purchases. So, while not every business must have one, it’s a good practice to have a clear refund policy to avoid legal trouble and keep customers happy.

Some industries, particularly those with highly perishable goods or services, often don’t allow refunds. For example, most travel-related industries, like airlines or hotels, or ticket-based services like concerts or events, usually have strict no-refund policies. Digital products, like software or downloads, also tend to be non-refundable because they can be used immediately after purchase. The nature of these businesses makes it difficult to offer refunds.

A solid refund policy should clearly state the time frame for returns (like 30 days), what items are eligible for a refund, and whether customers will get their money back, a store credit, or an exchange. It should also explain the process for initiating a refund, such as whether the product needs to be returned and in what condition. Also, including details about who covers the return shipping or if restocking fees apply is important for transparency.

The duration of a refund policy depends on your business and the products you sell, but typically, it ranges from 14 to 30 days. For higher-cost or more specialized items, you might offer a longer period to allow customers time to assess the purchase. Just remember, the more generous you are with your refund window, the better the chances are your customers will feel confident making a purchase.

If a customer isn’t happy with a purchase and your refund policy isn’t clear or isn’t honored, they might turn to their credit card company to dispute the charge (aka a chargeback). This process can be costly and time-consuming for businesses. A clear, fair refund policy can help reduce chargebacks, as customers are more likely to go through your process first instead of jumping straight to their card issuer.