Refund Policy
A refund policy sets out when a vendor gives money back and when it does not. In SaaS, fees are often non-refundable by default, with exceptions such as a short return window or ending the contract for the vendor's breach.
What is a refund policy?
A refund policy sets out when a vendor will give you money back and when it will not. In SaaS it may be a separate page or a sentence in the payment section of the terms of service.
The starting point in many SaaS contracts is that fees are not refundable. Refunds are the exception. HubSpot says "all amounts paid are non-refundable" except where its agreement says otherwise (section 3.5). Salesforce says fees paid are non-refundable unless the agreement or an order form says otherwise (section 5.1). See non-refundable fees for more.
The exceptions are where the value is. Ones you may see include:
- A short return window. Atlassian lets customers end a product's subscription within 30 days of the initial order, for any reason, and get a refund on request (section 10.3).
- Termination for the vendor's breach. HubSpot refunds prepaid but unused fees if you end the contract for cause (section 4.5). Salesforce refunds prepaid fees for the rest of the term if you terminate under its termination section (section 11.4). See termination for cause.
- Leaving after a change. If Atlassian makes certain changes during a paid term, you can terminate within 30 days of the notice and get a refund of prepaid fees for the rest of the term (section 20.9(c)).
A real change we caught
Venpo flagged a change in which the GoDaddy refund policy now excludes most renewals. In a separate update, GoDaddy cut refunds on its done-for-you services to 48 hours. A refund window can shrink with a simple page update.
Why it matters to you
- Renewals you forgot. If renewals are non-refundable, missing a cancellation deadline means paying for another full term. Pair this with the auto-renewal clause.
- Annual prepayment. Paying a year upfront for a discount can mean you cannot recover anything if the product does not work out.
- Outages. A bad month of downtime may give you service credits, not cash back.
What to check
- Find the refund rule: a separate page, the payment section or the order form.
- Note any return window and its start date, and whether it covers renewals.
- Check whether you get a pro-rated refund if you terminate for the vendor's breach or because of a change you reject.
- Before prepaying a year, ask for a written refund right for the first weeks or months.
How Venpo helps
Refund rules sit in public terms and policy pages that vendors update. Venpo monitors those pages and emails you a plain-English alert when a refund window shrinks or a type of charge becomes non-refundable, as with GoDaddy.
Frequently asked questions
Can I get a refund if I cancel a SaaS subscription mid-year?
Often not, unless the contract gives you a return window or you end it for the vendor's breach. Check the refund and termination sections before you prepay.
Are SaaS renewals refundable?
Many vendors treat renewals as non-refundable once they are charged. Cancel before the renewal date if you do not want another term.
Can a vendor change its refund policy?
Yes, if the policy is an online page the vendor can update. Your order form or a signed agreement may protect you if it sets its own refund terms.
Related terms
Sources
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