If you sell digital products, online courses, or coaching, one of the fastest ways to run into trouble is not having a solid refund policy.
A vague (or non-existent) policy =
❌ Confused customers
❌ Payment disputes
❌ Refund demands
❌ Chargebacks that can hurt your payment processor standing
Let’s fix that. Here’s how to write a legally sound refund policy that protects you, builds trust, and makes expectations clear from day one.
What Is a Refund Policy?
A refund policy explains:
● Whether or not you offer refunds
● The conditions under which they’re allowed
● How customers can request a refund
● The timeframe for refund eligibility
● Any exceptions (like duplicate payments or tech issues)
● The consequences of policy abuse
And it must be visible before the sale — ideally near the checkout button and in your terms and conditions.
Is It Legally Required to Offer Refunds?
No — especially not for digital products, which are usually non-refundable by default.
But what is legally required is transparency.
If you don’t offer refunds, you need to say that clearly — and the customer must accept that before buying.
Your refund policy should be:
✅ Clear
✅ Conspicuous
✅ Legally valid
✅ Written in plain English
✅ Consistent with your actual practice
Elements to Include in Your Refund Policy
✅ 1. Whether Refunds Are Offered
Examples:
“Due to the digital nature of this product, all sales are final and non-refundable.”
“Refunds will only be issued if the product has not been accessed or downloaded.”
✅ 2. Conditions for Refund Eligibility
Set rules upfront:
● Must request within 7 days
● No refunds on discounted offers
● Refunds only if login was never used, etc.
✅ 3. How to Request a Refund
Include:
● Contact email
● Required information (order number, reason, proof of issue)
● Steps to follow
✅ 4. Timeframe
Example:
“Requests must be received within 7 calendar days of purchase.”
✅ 5. Exceptions or Special Cases
Include language for:
● Duplicate charges
● Technical errors
● Product not delivered
✅ 6. Consequences for Misuse
Protect yourself:
“Customers who abuse the refund policy may be blocked from future purchases.”
Common Mistakes to Avoid
● Burying the refund policy in tiny font● Copying someone else’s policy without changing it
● Failing to mention the refund terms at checkout
● Saying “satisfaction guaranteed” without limits
● Ignoring your own terms and offering refunds anyway
Remember: If a customer disputes a charge, your refund policy could be used as
evidence. Be sure it’s consistent and enforced fairly.
Where to Display Your Refund Policy
● On your sales page, near the payment button
● In your website footer or terms of use
● In your confirmation email
● As a required checkbox at checkout (especially for no-refund policies)
✅ Refund Policy Checklist
● ✅ You’ve defined whether or not you offer refunds
● ✅ Conditions and deadlines are clearly explained
● ✅ Policy is easy to read and find on your site
● ✅ It appears before purchase and at checkout
● ✅ It aligns with your payment processor’s terms
● ✅ You’ve planned for exceptions (like tech glitches)
Not sure if your refund policy really protects your business?
You’re not alone — most online business owners skip this step until there’s a chargeback,
dispute, or angry DM. Don’t wait for drama.
Download our FREE Legal Mistakes Checklist to make sure your refund policy (and your
whole business) is legally buttoned-up and buyer-proof.
