Processing Refunds

Modified on Mon, 27 Apr at 2:38 PM

Refunds return money to the customer. This guide covers the two types you'll do most often — a refund as part of a cancellation, and a standalone refund against a paid booking — plus how refunds work with Stripe.

Refunds attached to a cancellation

The most common path. When you cancel a booking, the cancel modal includes refund options (amount, method, and whether to notify the customer). See Editing or Cancelling a Booking for the full flow.

Standalone refunds

Sometimes you need to refund a customer without cancelling — for example, they're still coming, but you've discounted the booking retroactively.

  1. Open the booking.
  2. In the payment panel, click Refund.
  3. Enter the refund amount (must be less than or equal to the paid amount).
  4. Choose the refund method (see below).
  5. Add a reason note for your records.
  6. Click Process Refund.

Refund modal on a paid booking showing amount input, refund method radio buttons, and reason note field

Refund methods

Back to original card (Stripe)

If the original payment was by card, this is the default. The refund goes back to the same card the customer paid with. No card number entry required — Stripe handles the link.

  • Refund typically appears in the customer's account in 5–10 business days (bank-dependent).
  • Partial refunds are fine — Stripe supports multiple refunds against a single charge, up to the original charge amount.
  • You cannot refund more than was charged.

Voucher / credit

Instead of returning cash, issue a voucher for the amount. The customer can redeem it against a future booking. Good for when you want to keep the money in the business and the customer is happy with credit.

Manual refund

For cash or EFTPOS payments — Booking Phoenix records that a refund happened, but you're responsible for returning the cash or EFTPOS refund yourself. Useful for keeping reports honest even when no money moves through Stripe.

Full vs partial refunds

  • Full refund — the whole paid amount. Typical when cancelling well in advance of the booking date.
  • Partial refund — a portion. Use when applying a cancellation fee or for late cancellations where your policy allows partial.

If the booking had multiple payments (e.g. a deposit and a balance), you can refund against any of them — pick which to refund from in the refund modal.

What happens after a refund

  1. The booking's paid amount decreases by the refund amount.
  2. The refund is logged against the booking in the payment history.
  3. If via Stripe, the refund is queued with Stripe (confirmed within seconds).
  4. A refund confirmation email is sent to the customer (unless you untick that option).
  5. Reports reflect the refund in the same period the original charge occurred (for most reports) or the refund date (for some cashflow reports).

Stripe fees and refunds

A point that catches businesses out: when you refund a Stripe charge, Stripe does not return the transaction fee. If you charged $100 and paid a $3 fee, refunding the full $100 costs your business $3. This is standard across all payment processors, not a Booking Phoenix thing.

Your options:

  • Absorb the fee (simplest, most customer-friendly).
  • Charge a cancellation fee that covers the payment fee.
  • Refund as voucher/credit instead of card — keeps the money and the fee absorbed.

Chargebacks and disputes

A chargeback is different from a refund — it's when a customer disputes the charge directly with their bank, and Stripe is told to reverse it. You'll see chargebacks in the Stripe dashboard, not in Booking Phoenix. Respond to them in Stripe's dispute centre with evidence (the booking confirmation, check-in records, waiver, etc.). Chargebacks are costly (typically $15+ on top of the refund) so respond promptly.

Common questions

The refund button is greyed out. The booking may not be paid yet, or all paid amounts have already been refunded. Check the payment history.

Can I refund more than was paid? No. If you need to give the customer more (e.g. a goodwill top-up), issue a voucher for the extra.

Can I reverse a refund? No. Stripe doesn't let you undo a refund. If it was made in error, you'd need to ask the customer to pay again (which creates a new charge).

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