To learn how to process refunds with Cloudbeds Payments, check the following article: Cloudbeds Payments - How to Process Refunds
This article clarifies the most frequently asked questions about refunds.
If you are interested in Cloudbeds Payments feature, click here for further details and talk to our team!
Frequently Asked Questions
- Credit card refunds, on average, take 3-7 business days from the issue date to reach your card holder’s account (it doesn't include weekends or federal bank holidays)
- Some issuing banks can take up to 30 days for a refund to be provided
- Once you submit the refund/credit to the card, there is nothing you can do to speed up this process . After you process a refund, it is up to the card-issuing bank to post the credit to the card holder's account
- If you processed a refund and it appears to have been properly issued through your software but has not been deposited within the expected timeline, we suggest the cardholder contact the (800) number on the back of their card to inquire with their card-issuer as to when they should expect the refund
Customize your refund policy to ensure your guests are aware of your terms and conditions. It is important that your guests understand how your property handles refund requests to prevent unwarranted chargebacks - check the following article to to update your policies: Policies Overview
We suggest considering a flexible or case by case refund policy as all major credit card companies allow cardholders to dispute a transaction if a guest can demonstrate any issue with the purchased product or service.
Learn more about charge backs on the following article:
Cloudbeds Payments - How to Handle a Retrieval or Chargeback
Assuming that the card used is still valid, you can refund a transaction up to 12 months from sale date. It is recommended to include your property's standard timeline for issuing refunds in your terms and conditions.
A refund cannot be undone. Be sure when processing a refund that the desired amount entered is correct as all refunds submitted to a credit card are final.
In this case, a few things can happen:
- If a new card was activated with the same card issuer, the refund is normally credited to the new payment card by the issuing bank.
- If the account was closed recently (last 2 months), the refund may be posted and the card-issuer usually reaches out to the cardholder to notify them of any next steps.
- If the account has been closed for some time, the attempt to credit the card will fail and you will receive an internal error. In this instance we advise you to issue a check to your cardholder and document the check being issued in the event of any dispute. You are unable to refund a transaction to a different credit card other than the card used for the initial transaction.
Any refunds processed will be taken from your next Payout balance. If your balance does not cover the refund amount processed, you will see a debit from your bank account for the net difference.
For example, if you have daily payouts enabled and you process a sale for $55.00 and process a $100.00 refund on the same day, you will see a debit from your bank account of $45.00 (plus any fees associated).
Note if you are enabled for weekly or monthly payouts, the above may not be applicable.
To change to a weekly or monthly payout frequency, please email firstname.lastname@example.org.
Payment Card Industry standards require merchants to issue refunds in the same manner as the original form of payment. As a merchant, this helps to prevent a charge back as the card-issuer will be able to see the original sale and the refund to the same card.
To ensure your customer is given back the money processed in error, simply perform a Refund Transaction on the sale. You cannot void or delete a transaction once processed.
In this case, you need to request a refund for the deleted reservation to the Cloudbeds Payment team by sending an email to our email@example.com and provide the following information and we will help you to refund the transaction:
- Requester Name
- Reservation ID
- Guest Name
- Amount to be Refunded
- Reason for refund
In case of cancellations requests, we strongly recommend you not delete the reservations from Cloudbeds system - Instead, switch the reservation status to cancelled. For further details, check the following article: How to cancel direct reservations on myfrontdesk
Transactions made via the Cloudbeds Payments terminal can be refunded via the Cloudbeds PMS. Refunds will be processed directly through the PMS. Learn more: Cloudbeds Payments - How to Process Refunds