As of 01 October 2023 banks no longer refund their originally deducted costs (the credit card commissions) when you refund funds to the guest's credit card.
Credit Card Refund Options
NightsBridge Pay provides the following options for refunds:
- Refund the full amount the guest paid (means you will carry the bank costs).
- Refund the total minus bank costs (guests should know about this beforehand)
- Refund a partial amount (e.g. according to the cancellation period)
Refund vs Reversal
Reversal
A reversal is when you stop or cancel a payment before it fully clears.
It essentially undoes the original transaction so the money never actually settles with your merchant - like PayBridge or another connected payment gateway.
Think of it as:
“Stop that payment and treat it as if it never happened.”
Refund
A refund is when you return money to the guest after the payment has already cleared and your merchant has received the funds.
Think of it as:
“Give the money back after the transaction is complete.”
Additional information on the topic is available in our article, Refunds and Reversals with NightsBridge Pay
Update your Terms and Conditions
If you decide not to return the bank costs when processing a refund, be sure to:
- inform guests that this is your refund policy, before they book by adding it to your Terms and Conditions.
Note that NightsBridge Pay is the same as a card machine. NightsBridge Pay provides the facility to help you process and manage payments.