When a client wants their money back.
WHEN IT ARISES
Shortly after signup, having changed their mind After a problem When they are leaving
WHAT YOUR TERMS SHOULD SAY
Whether refunds are available, within what period, and on what basis.
Decide in advance rather than case by case.
A REASONABLE POSITION
A short period after signup during which a full refund is available Pro-rata refunds on annual plans, or none, stated clearly No refund for time already used
WHEN TO REFUND ANYWAY
A small amount from an unhappy client is usually worth refunding regardless of your terms.
The argument costs more than the money, and they will talk about how it was handled.
WHEN NOT TO
A client who used the service for months and then demands everything back.
Point at your terms politely.
DOMAIN REGISTRATIONS
Never refundable. The registry charged you and it cannot be reversed.
State that explicitly, because clients assume otherwise.
THE JUDGEMENT
Refund quickly for small amounts. Hold your position on substantial ones where your terms are clear.