Navigating cancellations and payments can be tricky, especially when you need to process a credit card refund. If you use NightsBridge Pay to handle your transactions, understanding the difference between a refund and a reversal - and knowing who pays the bank costs - will help you manage your cash flow with confidence. This guide will walk you through your refund options, explain how banking changes affect your payouts, and show you how to update your Terms and Conditions to protect your business. Let's make sure you have all the information you need to handle changes smoothly and sleep better at night.
A quick note on bank costs
Since October 2023, banks made a system-wide change: they no longer refund their original transaction costs (the credit card commissions) when you send money back to a guest's card. Because NightsBridge Pay acts just like a digital card machine to help you process payments, these banking rules automatically apply to your transactions too.
Your Refund Options
When it is time to return funds through NightsBridge Pay, you have three clear choices depending on your property's policies:
- Full Refund: You return the exact amount the guest originally paid. Just keep in mind that this means your property will carry the bank costs for the transaction.
- Refund LESS Bank Costs: You return the guest's money but hold back the transaction fee. (Note: Guests must be informed of this beforehand, and this option is not available if you are doing a same-day reversal).
- Partial Refund: You return a specific portion of the money, such as an amount calculated according to your specific cancellation period.
Refund vs. Reversal: What is the difference?
It is easy to mix these two up, but they work quite differently behind the scenes:
- Reversal (The "Undo" Button): This stops or cancels a payment before it fully clears. With NightsBridge Pay, you can process a reversal right up until 22:00 on the exact same day the original transaction was made. The money goes straight back to the cardholder and never actually settles into your NightsBridge Pay account. Think of it as: "Stop that payment and treat it as if it never happened".
- Refund (The "Give it Back" Button): This is when you return money to a guest after the payment has already cleared and your merchant account has received the funds. Think of it as: "Give the money back after the transaction is complete".
More detailed information on the topic is available in our article, Refunds and Reversals with NightsBridge Pay.
Protecting yourself in your Terms & Conditions
If you decide that you won't be returning bank fees when guests cancel, it is incredibly important to let them know before they book. The best way to do this is by updating your property's Terms and Conditions on NightsBridge. We recommend adding a clear, friendly line like this: "Any fees charged by banks or payment gateways for processing a transaction are not refunded in the event of a cancellation or refund".
Remember, dealing with banking rules can sometimes feel overwhelming, but you are not alone. If you are ever unsure about processing a refund or updating your policies, our support team is always just a phone call away!