Refunds
Refunds return money to customers for payments they've already made.
When should I read this?
Read this if you need to process a refund, understand refund policies, or handle customer refund requests.
Refund types
Full refund
Returns the entire payment amount.
- Invoice marked as refunded
- Original payment reversed
- Subscription may be affected
Partial refund
Returns a portion of the payment.
- Creates a credit adjustment
- Original invoice remains paid
- Difference returned to customer
Processing refunds
- Go to the invoice or payment
- Click "Refund"
- Choose amount (full or partial)
- Confirm — funds returned via Stripe
Refund timeline
| Payment method | Refund appears |
|---|---|
| Credit card | 5-10 business days |
| Debit card | 5-10 business days |
| ACH bank | 3-5 business days |
Impact on billing
On invoices
- Full refund: Invoice status → Refunded
- Partial refund: Creates credit note
On subscriptions
Refunds don't automatically cancel subscriptions. Consider:
- Is this a one-time issue? Keep subscription active
- Is customer leaving? Cancel subscription separately
On revenue
- Refunds reduce recognized revenue
- MRR adjusts accordingly
- Shows in revenue reports
Alternatives to refunds
| Situation | Consider |
|---|---|
| Customer wants discount | Apply credit instead |
| Billing error | Void invoice if unpaid |
| Future credit | Add account balance |
Best practices
- Document reasons — add notes for future reference
- Act quickly — faster refunds = happier customers
- Consider credits — keeps money in your ecosystem
- Review patterns — frequent refunds signal problems