When should I make an exception or offer a refund outside my normal policy?

Money & Running the Business

When should I make an exception or offer a refund outside my normal policy?

The short answer

Make an exception when the normal policy produces an obviously unfair result, your business contributed to the problem, or the cost of a reasonable remedy is smaller than the time and trust you will lose by fighting. Decline when the request is dishonest, unsafe, repeatedly abusive, or would require you to break another promise or rule.

An exception should be a documented judgment, not a panicked attempt to prevent a negative review.

Start with the facts, not the customer’s volume

Check the order, agreement, delivery record, messages, payment status, and policy the customer actually saw before buying. Then ask:

  • Did we deliver what we promised?
  • Was the policy clear before purchase?
  • Did illness, disaster, accessibility, or another unusual circumstance change what is fair?
  • Can the item or time be recovered or resold?
  • Has this customer received similar exceptions before?
  • Is there a smaller remedy that solves the harm?

The FTC’s consumer guidance on resolving problems with a business tells customers to gather receipts, contracts, order details, and communications. Those are exactly the records you should review from the business side too.

Use a remedy ladder

You don’t have to jump from “no refund” to “full refund.” Depending on the facts, consider:

  1. fix or redo the work.
  2. replace the item.
  3. extend access or reschedule once.
  4. offer a partial refund tied to the undelivered portion.
  5. provide store credit only if it is genuinely useful and lawful.
  6. issue a full refund.

Suppose a customer misses a nonrefundable workshop because her child is hospitalized. You might transfer her once to the next session even though the standard policy says no transfers. If the workshop is discontinued, a refund may be fairer than unusable credit.

Put a boundary around the exception

Write: what happened, which policy normally applies, what exception was approved, who approved it, and whether it is one-time. Tell the customer clearly:

Our normal policy doesn’t include refunds after materials are delivered. Because the download link failed and we couldn’t restore access within the promised time, I’m refunding the purchase today.

Don’t demand a positive review or removal of an honest negative review in exchange. The FTC’s Consumer Review Fairness Act guidance explains limits on contract terms that restrict or penalize honest reviews.

Know when not to improvise

Pause and get qualified help if the request involves a charge dispute, threat, discrimination claim, regulated product, health or safety issue, subscription cancellation law, or a large amount. Refund and cancellation laws vary by location and industry, and your written policy cannot override applicable law.

Improve the policy after a pattern

One exception may be compassion. Ten similar exceptions usually mean the policy, sales page, product, or delivery process is wrong. Review exceptions monthly and look for a preventable cause.

Sources and further reading

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