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No Refund Policy For Services

• December 12, 2021
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No Refund Policy Samples & Writing Guide | Termly

Customers expect you to offer a refund policy that explains how, when, and under what conditions they can return purchased items or services.
However, refunds cost time and money. It may be best for your business to implement a no refund policy or a restricted refund policy.
Table of Contents
What Is a No Refund and No Return Policy?
Can Your Refund Policy State No Refunds?
No Refund Policy Samples
How to Write a No Refund Policy
Create Your No Refund Policy
FAQs About No Refund Policies
1. What Is a No Refund and No Return Policy?
A no refund policy is a statement explaining that your business will not provide compensation for purchased products or services that customers return.
A no refund policy (also referred to as a no refund no return policy) is typically found on a business’s return and refund policy page, which outlines the requirements, costs, and timeframes for customers to return merchandise or services.
Similar variations of no refund policies include:
All sales are final policy — states that once customers make a purchase, they will not be able to return that item for a replacement or refund. All sales final policies are typically applied to clearance sale items.
No cash refund policy — states that no monetary refunds will be given, though alternative refunds may be offered, such as store credit or exchanges.
No refund, exchange only policy — states that customers can only exchange items they wish to return, rather than get a refund.
2. Can Your Refund Policy State No Refunds?
Whether or not your refund policy can state no refunds will depend on your local laws and your industry’s standards. Let’s look at how no refund rules are impacted by some countries’ laws, as well as some common product and service offerings.
No Refund Laws
Consumer laws dealing with refunds will vary from country to country and state to state, so it’s important to be familiar with the laws in your jurisdiction. Here are examples of refund laws from around the world.
United States
While there are no federal refund laws in the US, many state laws don’t legally require refunds, instead allowing businesses to set their own refund policy.
In some states, not conspicuously displaying a no refund policy means customers are entitled to refunds.
Australia
In Australia, you are not allowed to have a no refund policy. Under Australian Consumer Law, consumers have the right to get replacements or refunds, cancel a service, or receive compensation for damages from faulty merchandise or services.
United Kingdom
According to UK law, refunds and returns are mandatory if the products are faulty or don’t match the product description.
Additionally, online, mail, and telephone order customers have the right to cancel their order for a limited time after making the purchase, even if the goods are not faulty.
Canada
According to the Government of Canada, it is not legally required for businesses to offer refunds or returns. Businesses can set their own refund or no refund policy.
No Refund Rules by Product
Refund rules also differ depending on the types of products or services you offer. No refund policies are allowed for products and services that are difficult to return or non-returnable, such as subscriptions and digital products.
No Refund Policy for Subscription Services
If you offer services that require making advance payments, such as subscriptions, your refund policy can state no refunds.
No refund policies for subscriptions typically specify that users will not get refunds for payments already made. Because subscriptions require recurring payments over a set period of time, refund policies should also address how cancellations work.
For example, Google Play Music’s refund policy states that there are no refunds for payments already made, but if users cancel the subscription, they can still access services until the end of the payment period.
No Refund Policy for Digital Products
Due to the non-returnable nature of digital products once they’re downloaded, your refund policy is allowed to state no refunds. An option is to include a limited refund policy, where items become non-refundable once they have been accessed or downloaded.
If you offer digital products, it’s common to specify no returns, no refunds. However, you need to be very clear in detailing the circumstances under which no returns, no refunds apply.
3. No Refund Policy Samples
The terms of no refund policies will vary depending on legal requirements and business preferences. Check out no refund policy examples from different types of businesses, so you can get ideas for what to include in your own.
Kobo — No Refund Policy for Digital Products
Kobo’s terms of sales states that digital products are final sale by default. The policy also takes European refund laws into account, because Kobo has customers in the European Union (EU).
This no refund policy sample specifies that EU residents are allowed to ask for refunds within 14 days of their purchase, as long as the digital product hasn’t been accessed or downloaded.
When creating a no refund policy, be aware of international refund laws that apply to your business based on the regions you’re serving. Although Kobo is a North American company, their refund policy also caters to their EU customers.
Muji — All Sales Final Policy
Muji’s return policy clearly explains the return process and any associated non-refundable fees. They also list items that are considered final sale, which are not eligible for refunds or exchanges.
Like the example, you can include your all sales final policy in your refund policy. List the types of items that are considered final sale, so customers have a clear idea of what’s not returnable.
The Time Hotel — Hotel No Refund Policy
The Time New York’s hotel policies state that prepaid reservations are non-refundable. It also includes instructions for cancelling reservations.
If your business involves customers making reservations or appointments, address cancellations and no-shows in your refund policy like in the example.
Nova Hair Salon — Refund Policy For Services
Businesses that offer services often vary in the strictness of their refund policy. Nova Hair Salon’s studio policy discloses that all services are non-refundable, but they’ll offer free corrective services for technical mistakes.
They also have a no cash refund policy for products, and give in-store credit instead.
If you provide services, consider adding alternative refund options or incentives to your no refund policy (like in the example) to maintain customer satisfaction.
4. How to Write a No Refund Policy
Although the details of a no refund policy will vary between businesses, here are some general tips to consider when writing your own no refund policy:
Be Upfront About Your Policy Conditions
Set expectations for your customers by being clear about your no refund conditions and answering key questions such as:
What products or services does the no refund policy apply to?
When does the no refund policy take effect (i. e., are purchases only non-refundable after a certain period of time)?
Are there exceptions to the policy (e. g., faulty products, technical errors)?
Consider Offering Refund Alternatives
As a business, you’re always striving for a high level of customer satisfaction. As a no refund policy may harm the customer experience, consider offering alternatives to refunds, such as store credit, exchanges, or rescheduling options for services.
Including these incentives in your no refund policy could help maintain good customer relations.
Be Aware of Refund Laws
Depending on where your business operates and who you’re serving, you need to determine the conditions and limits of your refund policy based on applicable consumer laws.
Use Plain Language
When it comes to wording your no refund policy, keep it as simple and straightforward as possible. Avoid legalese and forceful language such as “you must” or “you need to. ” Make the refund process easy to understand for your customers.
Display Your No Refund Policy Conspicuously
Display your no refund policy in places where your customers can easily see it. For example, if you own an ecommerce business, include it in your terms and conditions, checkout page, and FAQ page.
Clearly posting your no refund policy will also help prevent unauthorized returns in the form of chargebacks, which is when customers dispute a charge with their bank and the bank takes money from your business to return to customers.
5. Create Your No Refund Policy
Now that you understand what a no refund policy is, how refund laws can vary, and tips on writing a no refund policy for your business, it’s time to make your own. Download and customize our return policy template to detail your no refund policy.
Use our free return and refund policy generator to create a refund policy in minutes that suits your business.
The refund policy template and generator are best for:
Ecommerce businesses
Service providers
Stores
Shopify vendors
Marketplace vendors
Having a clear and accessible no refund policy will make for a smoother customer experience and protect your business.
6. FAQs About No Refund Policies
What is returns abuse?
How do you explain no refund policy?
Is it legal to offer a no return policy?
What is a no refund policy?

No Refund and No Return Policy [Laws, Guides & Examples]

E-commerce is booming and that trend is expected to continue over the coming years. More brands than ever take their businesses online. With customer experience being front and center when it comes to predicting success, having a clear and easy to understand no refund and no return policy on your website is sometimes essential if that is how you intend to run your business.
Expert tip:
Take the hassle of writing your own refund policy away with our refund policy generator. It will save you hours of work and help you increase sales.
Table of contentsWhat Is a No Refund, No Return Policy? Is it Legal to Have a No Refund Policy? No Refund Rules by Product TypeNo Refund Policy ExamplesHow to Write a No Refund Policy? Final Words1. What Is a No Refund, No Return Policy?
A refund policy is pretty self-explanatory; it goes over the specific circumstances under which a customer may request a reimbursement of the funds paid for a certain product or service, how to go about requesting such a refund, and the delays that apply.
A no refund and no return policy is quite exactly the opposite. It serves to warn your customers that the sale is final and that they will not be able to return the product that they purchase or get their money back.
Because this is not as standard as having a flexible return policy and as it could discourage potential customers, you should make it clear and conspicuous to your customers well before the checkout page so that they can make their purchasing decisions accordingly.
2. Is it Legal to Have a No Refund Policy?
Consumer protection laws vary considerably around the world. You must make sure that you are legally allowed to refuse refunds and returns otherwise your policy may not be enforceable in that specific country.
Let’s have a look at the legality of no-refund policies in the following countries:
United States of America
The United States does not legally require businesses to have a return and refund policy nor does it prevent them from having a no refund and no return policy. Some states do require that this policy be conspicuous, but that should be the case regardless of where your business is located.
Canada
In Canada, there is no federal law that requires merchants to accept returns or refund requests from consumers, which means that sellers are free to have that type of policy in place but should make sure that customers are aware that it is a “final sale”.
However, there may be some provincial laws that allow customers to cancel specific contracts without justification or penalty or return certain products, so you have to be mindful of that.
Australia
According to Australian Consumer Law, it is illegal to have a sign or no refund policy as consumers have the right to get their money back (or request a replacement) should there be a major problem with something they bought. This applies to both physical and online stores and is to protect Australian consumers that have bought faulty items.
You could, however, have a policy that specifies that there will be no refunds for change of mind, which will likely cover most potential return and refund situations while respecting Australian consumer laws.
United Kingdom
Similarly to Australia, in the United Kingdom refunds have to be given if an item is faulty, not as described, or does not do what it’s supposed to.
For that reason, it would be illegal for you to have a sign or policy that simply states “no refunds” as it would be a misleading statement that is contradictory to consumer law.
There are also some specific rules regarding digital products that apply in Europe and, at this time, the United Kingdom.
3. No Refund Rules by Product Type
Some types of products have specific rules when it comes to returns and refunds and for good reason, let’s have a look at a few of them.
Subscriptions
Most subscription-based products will have a no refund policy.
This is common practice when billing customers on a monthly basis. Should they wish to put an end to their subscription, they can put in a cancellation request and will stop being billed as of the next month. However, they will typically not be able to receive a refund for the previous months (as they have already benefited from the service) nor for the current billing period/month.
The same goes for apps or services that bill customers on an annual basis. They will be able to cancel their membership before it renews for another year but, if they choose to cancel after half the year, they will not be able to get a refund for the remaining 6 months and that even if they choose not to use the product anymore.
Canceling a subscription before its automatic renewal date is often mentioned as being the responsibility of the customer, as some businesses take advantage of people not keeping a close eye on recurring transactions on their credit cards.
If your subscription-based products have a no refund policy, it should be made very clear to potential customers so that they are aware and can make a note to that effect when they sign up.
Digital Products
A lot of apps are one-time purchases, meaning your customers pay once to have access to your product and its updates forever. Digital products also include anything that can be downloaded for a certain price but that could then be distributed, such as eBooks, videos, or templates.
Having a no refund policy for digital products is logical, as you would not want people to be able to benefit from all of your product’s features for a few months, be able to share it with their friends or save the content locally and then request a refund for the full amount once they are done.
There are, however, specific laws when it comes to digital products in the European Union.
A 14-day cooling-off period applies for all online or distance selling purchases, during which a purchase can be canceled and a refund requested, for any reason or without any justification (unless the performance of digital content has begun, downloaded the app for example). Your customers must be able to easily take advantage of such a provision.
This means that, if you sell digital content to an EU customer (including, at this time, the United Kingdom) you have to take into account that they have 14 days following purchase to request a refund, no questions asked, as per consumer law unless of course, they have started using the content.
However, note that express consent must be requested from the user acknowledging that by downloading the content (beginning of contractual performance) they lose their right of withdrawal. This is provided for by article 16 (m) of the European Consumer Rights Directive (CRD) which sets out “exceptions from the right of withdrawal”.
This notably applies if you sell digital products through the Apple Store, iTunes, or iBooks to European customers, as provided in the company’s terms and conditions:
And here is the sentence that specifies the exception to the right of cancellation when delivery has started upon the customer’s request and with their prior acknowledgment that by doing so they would lose their cancellation right:
If you sell virtual goods to consumers in the EU you must be mindful of this and may want to review your sales process to make sure that you implement a similar exception to consumers’ right of cancellation and obtain proper prior consent from them.
Note that this 14-day refund period for digital products does not currently apply to other countries outside the EU and that app purchases are still usually considered final and non-refundable unless there is a valid reason, such as technical problems, for requesting a refund.
Perishable Goods
Unsurprisingly, sales of products that are perishable in nature, such as food and drinks, are often found to be final unless they fail to meet applicable customer guarantees.
This is for health and safety reasons and to avoid merchants having to process returns and hand out refunds but being unable to resell the products afterward, which would be disastrous for those businesses.
British online grocer Ocado includes the following in its returns and refunds policy:
Colorado-based health food chain Natural Grocers’ policy provides that perishable items cannot be returned:
Some online stores do allow for returns and refunds of perishable goods but only in limited circumstances, such as when there is some time left before the product’s expiration date.
4. No Refund Policy Examples
Here a few examples of no-refund policies that were pulled from different websites. You will note that the terms vary greatly from one type of business to the next and that there is no one-size-fits-all when it comes to policy drafting.
Fitness app
Fitness guru Kayla Itsines’ SWEAT, a workout app that is popular with women all over the world, includes the following cancellation policy in its billing terms:
This app can be downloaded through the app store and customers can choose to be billed on a monthly or yearly basis. The policy specifies that no refunds or credits will be issued for unused subscription periods and that a customer must cancel before the start of the next billing cycle in order to avoid being charged.
This means that someone that purchases an annual membership at the cost of USD$119. 94, uses it for 6 months, and then decides to stop using it is not eligible for a refund.
In order to attract and make new customers more likely to sign up, SWEAT does offer a free trial period, which is fairly common practice in the fitness apps industry.
Streaming service
Netflix, which uses a similar monthly subscription model, includes the following cancellation clause in its terms of use:
This specifies that, to the extent permitted by law, payments made to Netflix are non-refundable and that no credits will be given. A member that opts to cancel their subscription will have access to the service until the end of the current billing period.
Netflix makes this clear to its customers by referencing that clause when answering questions relating to membership cancellation on their online help center.
Ticket sales
Ticketmaster’s United States purchase policy provides for refunds in very limited circumstances only – when an event is canceled or postponed. It also mentions that there are no refunds, returns, or exchanges for digital downloads or hotel/festival packages.
Fashion
Australian fashion designer Zimmerman sells its creations online and in-store.
The returns and exchanges policy that appears on its website makes a distinction between in-store and online purchases and states that no refunds will be given for in-store purchases unless required by law. Here is an extract from this policy:
Hotel and travel website
Hotwire is a website that sells unsold hotel rooms and vacation packages to its customers at discounted prices and often for last-minute travel. They offer “Hot Rate” bookings that allow customers with more flexibility to book a mystery hotel room at a significantly lower-than-average price; the hotel name and exact location are only revealed once the customer has paid and completed the booking.
For that reason, Hotwire specifically mentions that all Hot Rates bookings are final and cannot be canceled, refunded, exchanged, transferred, or changed. This makes sense as otherwise, customers could take advantage of low rates and simply request a refund should they not be satisfied with the hotel assigned to them.
While these no-refund policies are not all worded in the same way due to the different nature of the businesses, they all address the matter of exchanges, returns, and refunds and make it easy to understand for their customers.
5. How to Write a No Refund Policy?
Ultimately, you choose what you want to include in your no refund policy. Here are a few elements that you may want to consider when drafting your no refund policy and when displaying it on your website.
Outline the conditions
Use clear and easily understandable terms to make it evident to your potential customers which products this no refund, no return policy applies to; do not use legalese. While laws vary around the world, one thing is for sure, a lot of importance is given to customer protection.
In Australia, for example, you may want to remind your customer that they must have a valid reason under consumer law to request a refund and that you will not process refunds for change of mind.
Consider applicable law
As mentioned earlier, your policy should take into account local consumer protection laws; you will need to adapt your policy accordingly, which could mean having a country or region-specific return and refund policy. Similarly, some jurisdictions require that your no refund, no return policy be displayed in a certain way.
Specify clear timeframe
If applicable, you should include the time frame after which no return will be accepted nor refund will be given.
Offer refund alternatives
You could state that you will not provide refunds but allow your customers to instead return their purchases in exchange for a store credit or another item. If you are selling digital products, you could implement a free trial period. This will have the effect of de-risking the purchase for potential customers, as they will know that there are alternatives should they not be 100% satisfied with the product or service received.
If you do decide to provide refund alternatives, you should include a detailed procedure and make it easy for your customers.
Displaying the no refund policy
Your no refund and no return policy should be displayed conspicuously on your website so as not to be missed by your users.
You could include it in your terms and conditions, in the footer of your website, on your product page, in the form of a banner, and on your checkout page, which would be the equivalent of displaying it at the cash register in the case of a physical retail location.
Final Words
It makes sense to have a no refund policy for subscription services and a limited refund policy for digital products.
However, you may want to sit down and have a good think before implementing a strict refund policy, as it makes it riskier for potential customers to buy from you knowing that they cannot get their money back if they don’t like your product.
Most successful e-commerce stores do have a return and refund policy so just look at what your competitors are doing before coming to a final decision. You wouldn’t want to turn your potential customers away by scaring them with a no refund policy.
On a final note, you must consider where your customers are located and not where your business operates. With our world being more global than ever you must be mindful of applicable local regulations and ensure that you have an enforceable no return and no refund policy.
An easy way to do that is by using our refund policy generator, which will provide you with a customized attorney-drafted no return and no refund policy in a matter of minutes after answering just a few simple questions.
Save time and money with our refund policy generator. Create a refund policy custom-tailored specifically to your needs in just a few minutes.

How to say no to a refund request (with samples) – Tranzzo

If you sell products either online or in a brick-and-mortar store, it’s just a matter of time before your customer knocks at your door requesting a refund. And instead of shutting that door tightly, consider using another nying a request for a refund isn’t that easy, especially if you care for your company’s reputation as well as customer retention. And the classic “no, we won’t give you your money back” might not be the best answer. In this post, we’ll guide you through the effective tactics to decline a money-back request and retain each customer. Your refund denial letters will sound more natural and free of cliches after reading this article. So, let’s jump right in Why refund policy matters Allowing customers to issue refunds is a great practice aimed to offer them a better shopping experience and a safety net. However, many people might want to game the system, and that’s where problems crop up. To stave off refund abuse, you should have enough authority to decline money-back requests. And an incredibly detailed return and refund policy or a separate clause in your terms and conditions agreement is just what the doctor ordered. Even though none of these documents is required by law, they are your shield against dishonest consumers. By displaying the rules on the website, you’ll be able to restrict refunds legally and save your business from monetary losses. What scenarios you should include in your refund policy Start developing a sound refund policy by including the following scenarios: The final sale or non-refundable items If you need to get rid of excess stock or often returned merchandise, mark those products as a final sale. Items on sale are usually automatically non-refundable, but you’d better inform your clients about that. You can display that detail on the product page and in your return and refund policy. Damaged goods To keep your business safe from money losses in the long run, clearly explain to your buyers that you don’t accept damaged goods. The exception is when they are under warranty which covers the defects a customer is applying to. Make sure to describe in detail what kind of damages aren’t subject to refund. That will be your valid reason to decline money-back requests without hurting your business image. Perishable goods Refunding products that have already expired is a big no-no unless you want to burn a huge hole in your store’s budget. To avoid such unfortunate situations, you should clearly state in your refund policy that you aren’t eligible to give money back when the expiration date has passed. That is also the case of a warranty date or return deadline. Discontinued merchandise Even if the warranty covers the damaged item, you won’t be able to replace it as it’s no longer in production. So, make sure to protect yourself from refunding discontinued goods by including the clause that makes them non-refundable. Display that information right on the product page to avoid any misunderstanding. 5 need-to-know tips to craft a sound refund policy When working on your return and refund policy, make sure to cover all the details, even the smallest ones. You never know which nuance will cost you money. The good news is that we know, so here you go. Tip №1: Create deadlines If you don’t set deadlines, there is a high risk of refunding items long after the factual purchase. The reasonable deadlines are 14 to 30 days. Make your customers stick to them to avoid paying for well-used goods. Tip №2: Specify the conditions an item must be in We’ve already discussed that refunding damaged items is okay if a warranty covers the defects and the product isn’t discontinued. But don’t gloss over other nuances because they can cost you money. Depending on what you sell, define what other rules your clients should follow to return products. For example, it’s a standard practice to accept items only in their original condition and unopened. You can mention that in your №3: Define who will pay for return shipping If you don’t specify who is covering shipping charges, the chances are you’ll have a long, tough talk with a disappointed customer. Whether you’re going to pay for delivery or not, provide your clients with this №4: Clearly state what kind of refund you offer Imagine the situation when a client is returning a product hoping to get their money back, and you give them your store credits. They might not be thrilled with such a deal. To avoid unpleasant surprises for customers and exhausting arguments for yourself, add this information to your policy. Your clients should know whether they’ll receive money, coupons or anything №5: Craft a policy you’d like to experience yourself When working on your policy, don’t go over the top. Keep it strict but reasonable. If you post a policy that denies everything and aims to prevent even the slightest effort to return the money, you’ll just put yourself in an invidious position. Imagine the customer who is already disappointed with the product, so why fuel the fire? Make your policy fair and well-thought-out leaving some space for manoeuvres and consistent enforcement. How to say no without actually saying it Saying no to customers isn’t a piece of cake for sure. You can do that by phone, messenger or email – the choice is yours. No matter what means of communication you pick, you should be firm and polite. Use active language in your communication. Instead of saying “Your case has been investigated” and “The refund can’t be provided”, go for “I have carefully looked into your situation” and “We can’t issue a refund according to our policy”. Make sure to show your customer that you’ve really investigated the case. Inform them why exactly you came up with this decision. It’s easier to accept the negative outcome when the customer knows you’ve spent some time looking into their case. You can use the following templates to decline a refund nicely and reasonably: Hello Mr Jonson, I am writing to you in regard to your recent call. We have looked into your case carefully, considering the condition of the product you want to be refunded and the deadlines specified in our refund policy. Unfortunately, I have to refuse your request on the following grounds: your item shows signs of heavy use, and we refund only products in like-new condition; we accept products within 14 days from the moment of purchase, and your blender was bought a month ago; You can take a look at our refund policy by following this link: [INSERT LINK] for any inconveniences you had. Please, let us provide you with an in-store credit at 15% off the initial value of your blender. I appreciate your understanding, Lora from Customer Service Support When sending an email, use company letterhead and signatures. That’s how your answer will look more official and not appealable. Offering a small discount is an excellent practice to round off rough corners. That’s how your customer is likely to come to your store again. You can also dig deeper into the customer’s case and see what you can do about it to help them out. Even though you refuse the refund, you can still do something good for the person who has chosen your store. Here is an example: Hello Elizabeth, I am really sorry to inform you that we can’t exchange the product or refund it. After a careful investigation, we’ve come up to the conclusion that it was damaged while being used. I understand that you might be sad about this situation, but it seems to me that your chair is still fixable. I’ve found this tutorial on the official website. I hope it will be useful. Take care, Justin from the Customer Care Department. One last thing The most important thing you should keep in mind when working on the refund refusal is that you’re talking to your existing customers. They’ve already bought from you, and you should do whatever it takes to retain them. Even if you can’t give them their money back, look for other solutions like discounts, money-off coupons or at least a polite answer. Hope this article will come in handy. If you want to accept online payments from your customers fast and securely, we can help you out. Tranzzo is a reliable payment provider. We comply with the highest security standard PCI DSS level 1 and offer various payment solutions – from Apple Pay/Google Pay to recurring billing. Get in touch with us if you need more information.

Frequently Asked Questions about no refund policy for services

Is it legal to have a no refund policy?

The United States does not legally require businesses to have a return and refund policy nor does it prevent them from having a no refund and no return policy. Some states do require that this policy be conspicuous, but that should be the case regardless of where your business is located.May 5, 2021

How do you politely say no refund?

Use active language in your communication. Instead of saying “Your case has been investigated” and “The refund can’t be provided”, go for “I have carefully looked into your situation” and “We can’t issue a refund according to our policy”. Make sure to show your customer that you’ve really investigated the case.Jul 21, 2021