## Zoho Billing - Product, solutions, integrations, support, and resources Index Access the complete documentation index at: https://www.zoho.com/uk/billing/llms.txt Use this file to discover all available documentation pages before proceeding. # Automatic Refunds ENTERPRISE EDITION ![](/billing/images/ue-resources/llm-utility-menu/sparkle-ai.svg) Explore With AI ![](/billing/images/ue-resources/llm-utility-menu/dd-arrow.svg) * [Open in ChatGPT (opens in new tab)](https://chatgpt.com/?prompt=Analyze+the+content+of+https%3A%2F%2Fwww.zoho.com%2Fuk%2Fbilling%2Fhelp%2Fsettings%2Fsubscriptions%2Fautomatic-refunds.html+and+understand+it+thoroughly+so+I+can+ask+questions+about+it.) * [Open in Claude (opens in new tab)](https://claude.ai/new?q=Analyze+the+content+of+https%3A%2F%2Fwww.zoho.com%2Fuk%2Fbilling%2Fhelp%2Fsettings%2Fsubscriptions%2Fautomatic-refunds.html+and+understand+it+thoroughly+so+I+can+ask+questions+about+it.) * ![Copy for LLM](/billing/images/ue-resources/llm-utility-menu/copy.svg) Copy for LLM * [![View as Markdown](/billing/images/ue-resources/llm-utility-menu/md.svg) View as Markdown (opens in new tab)](/uk/billing/help/settings/subscriptions/automatic-refunds.md) Automatic Refunds let you refund your customers automatically when their subscription is cancelled, without having to calculate or process the refund manually. You can choose to refund customers based on their actual usage of the subscription, or set up a refund policy based on your subscriptions’ billing frequency. ## Enable Automatic Refunds **Prerequisite:** Only users with the **Admin** role or a custom role that has **Settings** permission enabled can access and configure Automatic Refunds. Users with the **Staff** role do not have access to _Settings_. To enable Automatic Refunds for your organisation: * Go to **Settings**. * Select **Automatic Refunds** under _Subscriptions_ in the _Module Settings_ pane. * Click **Enable Automatic Refunds**. The Automatic Refunds feature will be enabled in your organisation. You can then choose which method to use to calculate refund amounts. ## Types of Automatic Refunds Zoho Billing supports two methods to calculate automatic refunds: * [Usage-Based](/uk/billing/help/settings/subscriptions/automatic-refunds.html#usage-based-automatic-refunds) * [Refund Policy](/uk/billing/help/settings/subscriptions/automatic-refunds.html#refund-policy-based-automatic-refunds) **Note:** You can select only one _Automatic Refund Method_ for your organisation at a time. ### Usage-Based Automatic Refunds With the usage-based method, Zoho Billing calculates the refund amount for a cancelled subscription based on how much of the billing cycle the customer has actually used. The unused, prorated portion of the plan price is refunded to the customer. **Scenario:** A customer of Zylker has subscribed to a monthly plan worth $300. The customer cancels the subscription after using it for 10 days of the 30-day billing cycle. Since Zylker has enabled the Usage-Based Automatic Refund method, Zoho Billing calculates the amount for the unused 20 days and automatically refunds $200 to the customer. Here’s how to configure the usage-based method: * Go to **Settings**. * Select **Automatic Refunds** under _Subscriptions_ in the _Module Settings_ pane. * Choose **Usage-Based** under _Automatic Refund Method_. * Click **Save**. **How this works:** When an autocharge-enabled subscription is [cancelled](/uk/billing/help/sales/subscriptions/subscriptions.html#cancel-subscription): 1. A credit note is generated for the amount to be refunded. The amount is calculated automatically based on the number of days remaining in the billing cycle. 2. As soon as the credit note is generated, a refund is initiated to the customer. 3. You can check the status of automatic refunds from the _Automatic Refund Details_ report. All processed refunds also appear in the [Refund History](/uk/billing/help/reports/payments-received-reports.html#refund-history) report under _Reports_. ### Refund Policy Based Automatic Refunds With the refund policy method, you can set your own refund rules based on how many days into the billing cycle a customer cancels their subscription. You can configure separate refund rules called **cancellation windows** for weekly, monthly, and yearly subscriptions. Each billing frequency supports multiple tiered cancellation windows, so you can set refund rules based on when a customer cancels their subscription during the billing cycle. **Note:** If a customer cancels a subscription after the last configured end day for a billing frequency, no refund is issued. Only cancellations that fall within a configured cancellation window are eligible for a refund. Here’s how to choose the refund policy method: * Go to **Settings**. * Select **Automatic Refunds** under _Subscriptions_ in the _Module Settings_ pane. * Choose **Refund Policy** under _Automatic Refund Method_. Once you’ve chosen this method, configure the refund rules for each billing frequency that applies to your subscriptions. **How this works:** When an autocharge-enabled subscription is cancelled within a configured cancellation window, a credit note is generated for the applicable refund percentage of the plan price, and the refund is initiated to the customer immediately after the credit note is generated. #### Refund Policy for Weekly Subscriptions **Scenario:** Zylker Cloud sets the end day to 3 and the refund percentage to 100% for weekly subscriptions. When a customer cancels a weekly subscription on the 2nd day of the billing cycle, Zoho Billing automatically refunds 100% of the plan price to the customer. If the customer cancels on the 4th day or later (after the end day), no refund is issued. * Under _Weekly Subscriptions_, enter the **End Day** for the first cancellation window. The start day for the first window is always Day 1. * Enter the **Refund Percentage** of the plan price to refund for cancellations made within this window. * To add more tiers, click **Add Cancellation Window**. The start day for each new window is automatically set to the day after the previous window’s end day. * Click **Save**. #### Refund Policy for Monthly Subscriptions **Scenario:** Zylker Cloud sets up two cancellation windows for monthly subscriptions: Day 1–5 with a 100% refund, and Day 6–15 with a 50% refund. When a customer cancels a monthly subscription on Day 10, Zoho Billing automatically refunds 50% of the plan price to the customer. If the customer cancels on Day 16 or later (after the last end day), no refund is issued. * Under _Monthly Subscriptions_, enter the **End Day** for the first cancellation window. The start day for the first window is always Day 1. * Enter the **Refund Percentage** of the plan price to refund for cancellations made within this window. * To add more tiers, click **Add Cancellation Window**. The start day for each new window is automatically set to the day after the previous window’s end day. * Click **Save**. #### Refund Policy for Yearly Subscriptions **Scenario:** Zylker Cloud sets up three cancellation windows for yearly subscriptions: Day 1–30 with a 100% refund, Day 31–90 with a 50% refund, and Day 91–180 with a 25% refund. When a customer cancels a yearly subscription on Day 60, Zoho Billing automatically refunds 50% of the plan price to the customer. If the customer cancels on Day 181 or later (after the last end day), no refund is issued. * Under _Yearly Subscriptions_, enter the **End Day** for the first cancellation window. The start day for the first window is always Day 1. * Enter the **Refund Percentage** of the plan price to refund for cancellations made within this window. * To add more tiers, click **Add Cancellation Window**. The start day for each new window is automatically set to the day after the previous window’s end day. * Click **Save**. ## Disable Automatic Refunds To disable Automatic Refunds for your organisation: * Go to **Settings**. * Select **Automatic Refunds** under _Subscriptions_ in the _Module Settings_ pane. * Click **Disable**. Automatic Refunds will be turned off for your organisation. No refunds will be processed automatically when subscriptions are cancelled.