What to Do When a Client Asks for a Refund

You’ve just opened your inbox, and there it is: the dreaded email. A client is upset and asking for a refund — maybe even throwing words around like “breach” or “disappointed.” Or worse – “lawyer.” Your heart races, your brain is spinning, and the temptation to reply immediately is strong.

Take a deep breath. Literally. I want you to pause and breathe. You are not alone, and I promise, there’s a smart and strategic way to navigate this. Let’s go through it.

Step 1: Don’t Panic and Don’t Respond (Yet)

Your gut reaction might be to immediately reply to smooth things over. But before you say anything (seriously — anything) substantive, hit pause. A polite acknowledgement like, “Thank you for your message. I’m reviewing it and will follow up shortly,” is fine. But skip the apologies, explanations, or offers. 

Here’s why: what you say in that initial response can accidentally create a binding agreement. Or, you may make an offer you regret later. Once the emotions cool, you might realize that a refund isn’t actually required…or fair.

Step 2: Check the Contract…But Don’t Go It Alone

Now’s the time to dig into your contract and see what it actually says about cancellations, refunds, and disputes. But — and this is crucial — don’t rely solely on your interpretation. Consult an attorney before making any decisions or responses. (Remember when I said you should develop a relationship with a lawyer before you need one? This is why. Your hour of need is not the best time to start researching small business attorneys.)

I’ve seen well-meaning business owners get themselves into hot water by quoting their contract incorrectly or misjudging the legal weight of a refund situation. An experienced attorney can help you craft a response that protects you and de-escalates the situation.

Step 3: Make a Decision

It’s time to decide how you want to respond, which isn’t always straight-forward. There’s what the contract says (the legal decision), and then there’s what’s best for your business reputation (the business decision). These aren’t always the same. 

Let’s say a couple calls off their wedding because of a death in the family. Maybe your contract allows you to keep the retainer. Legally, you’re covered. But does it feel like the right thing to do? Maybe…and maybe not. The “right” answer isn’t always black and white.

Step 4: Responding To Your Client’s Demands

Your client may have expressed a demand in their initial complaint email, or they may have waited for your reply before asking for something, like to terminate the contract or to receive a refund. You’ll have to evaluate each request differently.

When Your Client Wants to Terminate Early

This is where things can get murky. If a client wants to cancel your services before the event, you may want to evaluate: 

1. What does your contract say about early termination? 

2. Is the client alleging that you did something wrong? 

3. Do you have documentation to support your side? 

Don’t jump to assumptions. Even if a client is angry, their complaint may not have legal standing.

Asking for a Refund After the Event

Oof. These are tough. Maybe the client says something didn’t meet expectations or wasn’t delivered. Ask yourself: 

1. Is this concern addressed in your contract?

2. Did the service actually fall short, or is it a matter of preference? 

3. Do you have proof of the service provided (photos, emails, timeline)? 

Good record keeping will be your best friend in these types of situations, so be sure to include that in your process as you serve your clients and archive projects.

Bottom Line? Call in Backup

If you’re not sure how to respond when a client asks for a refund or to cancel their contract, don’t go it alone. Working with an attorney doesn’t mean you’re about to head into a courtroom — most of the time, it’s just about protecting yourself with a well-worded response and a thorough game plan. 

Your business deserves that kind of protection. And frankly? So do you. The law doesn’t have to be scary, and you don’t have to face it by yourself. That’s what I’m here for — to support creatives, wedding pros, and small business owners through tricky client situations. Whether you need help understanding your contract better or want to prep a response that won’t come back to bite you later, I’ve got your back! Let’s chat before you hit send.

Disclaimer: Any legal information contained in this post was accurate as of the date of the writing. The law changes frequently, so readers should not rely on online information, but rather should consult a lawyer who can discuss their specific factual situation.