Handling cancellations is a normal part of running an accommodation business, and returning a payment to a guest shouldn't cause you any extra stress. When you return a payment through NightsBridge Pay, it will be processed as either a reversal or a refund. The difference depends entirely on where the payment is in its lifecycle, or how quickly you process it.
Here is a quick guide to understanding how both processes work:
The Reversal (Before the funds clear)
A reversal happens if you cancel the payment before 22:00 on the exact same day the guest made the original transaction. Because the funds are still "in transit," the transaction is simply stopped and the money never settles into your account.
- The benefit: Because the transaction never clears, there are no transaction fees or bank charges.
A quick note: Because there are no fees to deduct, the option to 'Reverse LESS card fee' won't be available here.
The Refund (After the funds clear)
If you process the return after 22:00 on the day of payment, the funds have already successfully settled into your account. This means the return must be processed as a brand-new, separate transaction.
- The timeline: Because banks are involved in processing this new transaction, it can take several business days for the money to reflect in the guest's account.
- Card fees: Since the original payment was successfully completed, standard card fees will apply. This means you will have the option to choose 'Reverse LESS card fee' to pass that cost on to the guest.
A smart business tip: If you choose not to refund bank costs, please make sure to clearly state this in your NightsBridge Terms and Conditions so guests know your policy before they book.
Here's an example of the type of information to include within your Terms and Conditions on NightsBridge:
"Any fees charged by banks or payment gateways for processing a transaction are not refunded in the event of a cancellation or refund."
What about Partial Reversals?
If you are only returning a portion of the guest's payment, it will always be processed as a refund. Even if you do it before 22:00.
Because the returned amount doesn't match the original payment, the system cannot simply void it. Instead, the full original amount will settle into your account, and the partial return will be processed as a brand-new transaction.