Find out how to manage refunds with Lodgify Payments and what to do in case of a negative balance.
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Issuing Refunds
With Lodgify Payments you can manage reservation refunds within Lodgify.
To refund a guest's payment processed through Lodgify Payments, you can process the refund from the Reservation page of your Lodgify account:
Note that a refund processed in the Lodgify Payments section will show as successful there, but the reservation page will not reflect it as refunded.
If the refund status in Lodgify Payments shows ‘Refunded’ and not ‘Refund pending,’ the refund has been successfully sent to the guest. You can view your Lodgify Payments transactions and refunds here.
It can take 5–10 business days for the guest to receive the refund on the card originally used for the payment.
Please note that when processing a refund for a guest, Lodgify Payment Fees and the Transaction Fees are not refunded.
You can check the refund status in your Payments section:
If you’d like refunds for bookings made via Vrbo and your website to be issued automatically according to your cancellation policy, you can enable this in your Lodgify Payments settings.
Once set up, refunds will be processed automatically, making it easier to manage bookings and cancellations.
You can set it up here by selecting the three dots:
Then select Automatically issue a refund to the credit card when a cancellation policy triggers a scheduled refund, and click Save.
Refunds FAQs
Why is the refund showing as Refund pending?
A "Refund pending" status means the refund is waiting to be processed. If your account balance is insufficient, the refund can still go through, but your account may temporarily show a negative balance until the funds are debited.
Why is there a negative balance in the Lodgify Payments payout section?
The negative balance shown in the payout section is due to a chargeback or a pending refund. If the payout has already been sent to your bank account, Stripe typically debits the same bank account that receives payouts, usually within 2 business days after the refund has been issued or a chargeback has been initiated by the guest.
You can find more information about chargebacks here.
What do I need to do if a refund is pending?
Stripe will debit the bank account linked to your payouts. Make sure there are enough funds to cover the refund and any related fees, including transaction and Lodgify Payments fees.
If your account does not have enough funds to cover the refund, Stripe will automatically attempt to debit your bank account again.
Please note that the guest will receive a full refund of the amount they paid. However, Lodgify Payments fees and transaction fees are not returned to you, as these fees are incurred at the time of the original payment and are non-recoverable.
🔎 Example of a refund:
- Guest pays: 500 USD
- Transaction fee: 5.00 USD (1%)
- Lodgify Payments fee: 14.80 USD (2.9% + 0.30 USD)
- Total fees: 19.80 USD (Transaction fee + Lodgify Payments fee)
- Amount debited by Stripe for the refund: 500 USD
- Amount the guest receives: 500 USD
- Fees not returned to you: 19.80 USD
I’ve issued a refund to the guest, but they say they haven’t received it
If a guest confirms they haven’t received their refund after 5–10 business days, you can provide them with the Acquirer Reference Number (ARN), also known as the refund reference number.
This allows their bank to trace the refund on their behalf. The Acquirer Reference Number (ARN) is typically available 1–3 days after the refund has been issued.
The Acquirer Reference Number (ARN) can be found in the Payments section by selecting the relevant payment.
I have issued a refund to a guest. When does Stripe debit my bank account?
Stripe typically debits the same bank account that receives payouts, usually 2 business days after the refund has been issued or a chargeback has been initiated by the guest.
Stripe has confirmed they are unable to debit the amount for the refund?
If your account doesn’t have enough funds to cover the refund, Stripe will automatically attempt to debit your bank account again. Please ensure there are enough funds to cover it. You can also add a balance to your account.
Why are Stripe trying to debit my bank account for the refund issued when I have not received the payout for the booking?
If Stripe is debiting your bank to cover a refund, it means the payout has already been sent. The payout reflects deductions for transaction and Lodgify Payments fees. On your bank statement, it may appear as ‘Transfer Lodgify Payments’ or the name you provided when setting up Lodgify Payments.
I issued a refund by mistake. Can I cancel the refund?
Once a refund has been issued, we are unable to cancel it. Refunds are automatically processed and sent to the guest’s bank, and once this process has begun, it cannot be reversed or stopped.
Are payout amounts used to cover refunds and chargebacks?
Yes, payouts can be used to cover chargebacks and refunds. If a payout is scheduled around the time a refund is issued or a chargeback is initiated, the payout may be applied to cover all or part of the amount owed.
Add a balance
A negative balance can occur if you need to issue a refund or if there has been a chargeback.. Find more information about Chargebacks here.
If you do not have an available balance, Stripe will attempt to debit the required amount from your bank account on file 2 business days after the negative balance occurs. You will be notified via email by Stripe before a debit is made on your account.
- If the direct debit attempt is successful, the negative balance will be cleared, and your Lodgify account will reflect a non-negative balance.
- If the direct debit attempt is unsuccessful, you can top up your balance by sending a bank transfer to your Lodgify Payments account. Please note that you can add funds to your account at any time to cover potential chargebacks or refunds when needed.
Balance FAQs
How do I add a balance to cover negative balances, refunds, and chargebacks?
You can add a balance to your account at any time. Adding a balance is optional, but not mandatory, as Stripe will attempt to debit your bank account when necessary.
If you would like to add a balance, click here or go to Settings → Payouts and see details, then select Add to balance. You will need to enter the amount you wish to add.
Please note that when you select Add to balance, you will be provided with Stripe’s bank details, and you will be required to send a bank transfer for the amount you wish to add. It can take up to 5 business days for Stripe to receive the funds into their bank. Once received, the funds will be allocated to your Lodgify Payments account. The funds will not be credited unless the amount is sent to Stripe via bank transfer.
I have added a balance for Lodgify Payments. Why are the added funds not showing?
If you have sent a bank transfer to Stripe for the amount you wanted to add and it does not appear under payouts as a total balance after 5 business days, please contact us with your bank statement to confirm the transfer so we can trace the payment.