Refunds happen in any business: client cancelled in time, service didn't go as expected, your error, package change mid-way. Handling them well is a silent differentiator - the client feels the business runs professionally. Handling them badly creates negative reviews and loses reputation. This guide shows the BookHero process, when to refund (even without obligation), and how to communicate with the client.
When to refund (and when to refuse)
First decision is always whether refund makes sense. Simple framework:
| Situation | Refund? | Reason |
|---|---|---|
| Client cancelled within cancellation window | Yes, full | Policy respected |
| Your error (wrong booking, professional missed) | Yes, full + courtesy extra | Your responsibility |
| Service didn't go as expected (dissatisfaction) | Case by case | Can justify partial or full |
| Client cancelled outside window | No (rule) or partial (good faith) | Policy applied, exceptions for loyal |
| Client missed without notice (no-show) | No | Policy applied |
| Service was provided, client changed mind | No | Work done |
| 5-year loyal client with first problem | Yes, even outside policy | Investment in relationship |
Online payment refund (Stripe / card)
When the client paid via Stripe (online card), the process is digital and simple:
Open the booking in BookHero
Calendar > click the booking > see associated payment record.
Choose Refund
Full or partial. Full: refunds everything. Partial: you specify exact amount.
System processes via Stripe
Refund enters the Stripe queue automatically.
Money returns to client's card in 5-10 business days
Client sees on bank statement. You see confirmation in BookHero.
Original document marked as refunded
Credit note generated automatically, linked to original.
In-person payment refund (cash / physical card)
When the client paid in cash or physical card (on the machine), refund outside the system but log in BookHero:
Return the value to the client
Immediate cash, transfer, or instant payment. Keep refund proof.
Open the booking in BookHero
Go to the transaction record.
Issue credit note (NC)
COR type in BookHero. Reference original document.
Original document and new NC linked
In reports, both appear - revenue adjusted to net.
In private notes, log context
Refund 03/12 €30 due to dissatisfaction - client Maria. For future history.
Partial refund: common cases
Not always all-or-nothing. Cases where partial refund makes sense:
- Client cancelled 8-session pack mid-way (4 already done) - refund the 4 unused.
- Service provided but with partial issue (color came lighter than agreed) - 20-30% discount on next or partial refund now.
- Client paid €280 pack but used only €120 in sessions - refund difference.
- Double-charging error (rare) - refund the duplicate.
Communication to the client
How you communicate the refund matters as much as the value. Template text for typical situations:
Refunds in specific cases
| Case | Recommendation |
|---|---|
| Client claimed bad service (no proof) | Investigate (before/after photo, talk to colleague) - decide based on evidence |
| Client wants refund due to plan change | Policy applies - no error from you or the house |
| Pack interrupted by city move | Refund the unused with sympathy |
| Allergic client didn't declare allergy | Case-by-case - if they didn't say, not your fault, but consider half-way |
| Obvious error from you (bad cut, wrong dye) | Always 100% + extra; it's your reputation |
Documentation for protection
On every refund, document to avoid future problems:
- Refund reason in client card private notes.
- Date and value.
- Refund method (automatic Stripe, transfer, cash).
- Refund proof saved in digital folder.
- Communication to client (email, WhatsApp - copy to record).
Refunds in the financial report
All refunds adjust the revenue report. Implications:
- Monthly revenue gets smaller (no longer includes refunded amount).
- Commissions may need retroactive adjustment (if staff already received commission on refunded service).
- VAT / taxes calculated on net revenue (with refunds already deducted).
- To close the month, see month's refunds to understand real net.
Common mistakes
- Refusing refund to loyal client - you lose much more in future revenue.
- Not documenting - without record, ambiguity in later discussions.
- Refunding without credit note - reports get wrong.
- Refunding but continuing to debit commissions on the refund - double damage.
- Delaying processing - client waits anxious, loses patience.
- Communicating refund via generic message - feels automated, cold.
FAQ
How long does a Stripe refund take to reach the client?
5 to 10 business days. Client sees on bank statement. In rare cases up to 14 days - nothing you can control on your side, depends on client's bank.
Can I refund as product / credit instead of cash?
Yes, if client accepts. Instead of returning €30, offer €40 credit for next visit. Client feels benefited, you keep future revenue. But careful - some clients prefer money back.
I refunded but client is still angry and left negative review - what to do?
Respond professionally publicly (without revealing details). Privately, offer a third try (free session, extra gesture). If they refuse, let go - some clients simply won't be satisfied.
How to prevent abuse (client recurringly asking refunds)?
Log every case on the card. Client with 3+ refund requests in 12 months: on the 4th, refuse politely based on history. Policy applied with data in hand.
What if the client demands refund and threatens formal complaint?
Stay calm and professional. If your policy is clear and was communicated, you're defensible. If not well documented, consider conceding to avoid escalation. As last resort, seek legal support - rarely gets there.