Templates | 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?

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cancellation policy template

Set a clear refund and cancellation policy. 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 write a return policy

Writing a return policy isn’t just about covering your bases; it’s about setting clear expectations with your customers. A good return policy is easy to understand, answers common questions before they’re asked, and helps prevent disputes down the line.

Start by thinking about the types of products or services you offer. Are they physical items, digital downloads, or custom work? The more specific you are, the easier it is for customers to know what to expect. Include details like what qualifies for a return, how long customers have to request one, who pays for shipping, and how refunds (if any) are issued.

Keep your tone straightforward. Skip the jargon and legalese. If your policy reads like a conversation, customers are more likely to trust it and follow it.

Example use case for a return policy template

Let’s say you’re running an online store that sells handmade candles. A return policy template can save you time by giving you a ready-made structure. You’d just fill in the blanks based on how you operate.

For instance, maybe you’re happy to accept returns on unused candles within 14 days, but not on sale items or custom scents. A template helps you lay that out clearly. It’s also helpful for making sure you don’t forget anything important, like how customers should contact you or what info they need to include in their return request.

The real value is consistency. Once your policy is in place, you can refer back to it whenever questions come up, and your customers have a reliable source of truth.

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.

Are refund policies legally required?

It depends on where you’re located and what you’re selling. In many places, no blanket law requires refunds, especially for certain types of goods or services. Still, there are consumer protection laws that mandate transparency.

That’s why it’s important to make your policy visible at checkout and to be honest about what customers can expect. Some regions (like the EU or certain U.S. states) may have cooling-off periods or require refunds in specific cases, so it’s worth doing a little research to make sure you’re covered.

Bottom line: even if refunds aren’t legally required, having a clear policy helps you stay on good terms with both your customers and any local regulations.

What industries typically don’t allow refunds

There are a few industries where “no refunds” is pretty common and usually for good reason.

Digital products and software, for example, are often non-refundable. Once someone downloads a file, there’s no real way to return it. Custom services, such as graphic design or consulting, are also difficult to refund once the work has begun. Then there are industries like events, travel, or memberships where once you’ve reserved a spot or used some of the services, offering a refund isn’t always practical.

If you’re in one of these fields, you’re not alone. Plenty of businesses operate with no-refund policies as long as they’re clearly stated and fair.

How could I write a no-refund policy?

If you’ve decided a no-refund policy makes sense for your business, the key is to be upfront and clear. Let your customers know from the start that all sales are final. Don’t hide it in the fine print. Put it somewhere easy to see, like your checkout page or terms and conditions.

That said, be thoughtful in your wording. Instead of sounding harsh, explain why the policy exists. For example, if you offer custom work or digital content, you can briefly mention that refunds aren’t possible because the product is tailored or instantly accessible.

Also, consider offering alternatives. Perhaps you don’t offer refunds, but you’re open to exchanges or store credit in certain situations. It’s your policy so that it can reflect your values, and your audience will appreciate that you took the time to explain it clearly.

FAQs

FAQs

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.

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.