Ah, the refund—the thorn in every creative entrepreneur’s side. I don’t say that to be dramatic (okay, maybe a little), but let’s be real: refunds and chargebacks are the ultimate business buzzkills. The worst part? They don’t have to be a problem with the right game plan.
The trick is to have safeguards in place while still leaving room for a little kindness—because, after all, business is personal. If you’re in the creative world, you know that every interaction matters. So, let’s get into it.
Refunds: When to Say Yes (and When to Hold Your Ground)
Look, I’ve been there. Refund requests happen, even when you’re crystal clear in your contract. You think you’ve covered your bases—“No refunds if you change your mind, don’t provide info, or ghost me midway through the project.” Yet… they still come.
And yeah, you could say no. Contracts exist for a reason, right? You’re 100% within your rights to politely respond with, “Per our agreement, I’m not able to offer a refund.” Full stop. No shame in that.
But let’s flip this for a sec: If you were in their shoes, would you ever ask for a refund from a fellow business owner? If your gut answer is “yes,” then maybe—just maybe—there are times when it’s okay to offer a refund, even if your policy says no.
If your cash flow can handle it, issuing a refund can actually boost your reputation. It’s not always ideal, but it shows you care about the client and their experience. And who knows? That kindness might just bring them back to you in the future—or earn you a referral down the line. It’s a small loss now for a potential win later.
Chargebacks: The Real Business Killers
Now let’s talk chargebacks. These aren’t just a little annoying—they’re a full-on threat to your business if you’re not prepared. I once had a client hit with multiple chargebacks—we’re talking $6,000 worth—from a single customer, who filed claims for services that went back months.
Listen, I get it. Freaking out is a natural first instinct. But I promise you, panic won’t help. The best thing you can do when a chargeback lands in your lap is to stay calm and handle it strategically.
Here’s what you need to do:
- Work with your payment processor ASAP. Provide any proof you have that the service was delivered as promised—emails, invoices, signed contracts, whatever you’ve got.
- Make sure your contract has your back. Include a clause about chargebacks, ideally stating that you’ll report any fraudulent claims to credit bureaus. Pro tip: Work with a lawyer to get the wording just right—this part’s important.
Why Chargebacks Hurt Small Businesses
Here’s some real talk: If you’ve received the service you paid for but you’re tempted to file a chargeback because you’re low on cash—don’t. Chargebacks can crush small businesses. Taking money back from someone who did the work in good faith isn’t the way to go.
Grace, Not Grit, Wins the Game
Look, refunds and chargebacks are just part of running a business. They suck, yes, but they don’t have to knock you off your game. The best way to handle both situations? Grace and kindness—for both yourself and the client.
Even if the person on the other end seems desperate or rude, responding with compassion goes a long way. When you handle these situations head-on with calm professionalism, you give them a chance to see you as a real person running a real business. And that? That can make all the difference.
Need a Plan for When Things Get Messy?
Refunds and chargebacks are stressful, but you don’t have to figure it all out on your own. If the idea of handling all this financial chaos makes your head spin, I’ve got the perfect solution.
Snag my free Strategic Success Mini Workshop and learn how to connect your finances with your business goals—so you can stay on top of your money and stay cool under pressure. Because running a business isn’t just about tracking numbers; it’s about being prepared for whatever comes your way.
When you sign up, you’ll get practical tools, tips, and exclusive insights delivered straight to your inbox—because the less time you spend stressing over refunds and chargebacks, the more time you have to grow your business.
Click here to access the free workshop and set yourself up for success today.
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