Refund Policy Template

Why publish a refund policy

Refund requests are far easier to handle when the rules were agreed before the sale, not invented during the argument. A clear, published refund policy sets expectations up front, reduces disputes, and stops refund disagreements from spilling over into your collections process. It also signals professionalism and fairness, which builds the trust that keeps customers paying. This template is general business information for commercial supply; tailor it to your goods or services and your obligations before you rely on it.

The refund policy

1. Scope

Sets out when refunds, credits or replacements are available for [goods / services] supplied by [business].

2. Faulty or not as described

Where a supply is faulty or materially not as described, we will repair, replace, credit or refund as appropriate.

3. Change of mind

Change-of-mind refunds are [available / not available]; where offered, conditions and timeframes are stated.

4. Deposits

Deposits are [non-refundable / refundable up to a stated point], reflecting work already committed.

5. Method

Approved refunds are paid by the original payment method within [X business days].

6. Process

Requests are made to [contact] with proof of purchase; each is assessed against this policy.

7. Records

Every refund request and decision is logged with the reason and amount.

How to use it

Decide your real position on each clause — especially change-of-mind and deposits — and write it plainly, because vague refund terms create exactly the disputes they were meant to prevent. Publish the finished policy where customers actually see it: on quotes, on your site, and referenced on invoices. When a request comes in, assess it against the written policy rather than the customer's persistence, and log the decision so similar cases are treated alike. Keep refunds and deposits consistent with your payment methods policy, and use the free calculators to check any pro-rata figure before you process it.

Keep refunds out of collections

A refund dispute that drifts into your collections queue confuses both. Resolve refund questions through this policy first, and only resume chasing a balance once the refund position is settled and recorded. If a customer withholds payment pending a refund, address the refund promptly rather than letting the whole account stall. Review the policy each year so it keeps pace with what you actually sell and how you sell it.