When a Direct booking is cancelled or a refund is needed, the process depends on the type of refund, your Direct plan (Premium or Basic), and when the refund is issued relative to payout. This article explains how refunds work end-to-end — for both hosts and guests.
Refund Processing Times
Once a refund is issued, the time it takes for the funds to reach the guest depends on the original payment method.
Payment method | Estimated processing time |
Credit card | 5–10 business days |
Debit card | 5–10 business days |
Bank transfer | 5–10 business days |
If a booking is declined or expires before payment is captured, any authorization hold on the guest's card is typically released within 3–5 business days.
A screenshot showing a refund confirmation message in the Hospitable inbox for a Direct booking.
Types of Refunds
Full Refunds
A full refund is issued when:
The host cancels the reservation (a full refund is always issued, regardless of cancellation policy)
The guest cancels and the cancellation policy allows a full refund
A full refund includes the exact amount the guest paid, including the guest service fee.
On Direct Basic, the host is still responsible for Stripe processing fees, even on a full refund. These fees are not returned by Stripe.
Partial Refunds
A partial refund is issued when a guest cancels and the cancellation policy allows only a partial refund. The refundable amount is calculated based on:
The cancellation policy applied to the reservation
The accommodation cost for the refundable portion of the stay
Fees and taxes on top of the accommodation are refunded proportionally based on the policy
Service fee behavior on partial refunds:
Direct Premium: The service fee is collected (not refunded) on partial refunds
Direct Basic: The service fee is collected from the host on partial refunds
On full refunds, service fees collected by Hospitable are refunded on both plans.
Ad Hoc Refunds (Send or Request Money)
Hosts can issue refunds outside of the cancellation flow using the "Send or request money" feature in the inbox. This is useful for:
Issuing a goodwill refund after a guest complaint
Refunding for a service issue (e.g., broken amenity, early checkout)
Any situation where a partial refund is warranted outside of cancellation
Key rules for ad hoc refunds:
Available for up to 14 days after the reservation ends
The maximum refundable amount is the lower of: the amount the guest originally paid, or the current balance of the payout method
Hosts choose the amount to refund
A screenshot of the Hospitable inbox showing the "Send or request money" option on a Direct reservation conversation
What Happens to Host Payouts When a Refund Is Issued
The impact on your payout depends on when the refund is issued and your Direct plan.
Refund Before Payout
If the refund is processed before the payout has been sent to you, the refund amount is simply deducted from the pending payout. No further action is needed.
Refund After Payout
Direct Premium:
The refund is drawn from your payout method
If your payout method doesn't have enough balance, a deficit is created and deducted from your future payouts until the balance is recovered
Direct Basic:
The refund is processed through Stripe
If your Stripe balance is insufficient, the refund may fail or create a negative balance
On Direct Premium, ad hoc refunds automatically create a negative adjustment on your next payout to recover the refunded amount. You don't need to take any manual action — it's handled automatically.
Guest Perspective: Where to See Refund Status
Guests who booked directly can view their refund amount through the Guest Portal.
Once a refund is initiated, the guest will receive an email containing:
Confirmation that a refund has been issued
The refund amount
An estimated timeline for the funds to appear
If a guest asks about their refund status, you can let them know that refunds typically take 5–10 business days to process after being issued.
FAQ
Why is the refund taking so long?
Why is the refund taking so long?
Refunds typically take 5–10 business days to process once issued. The exact timeline depends on the bank or card issuer. If it has been longer than 10 business days, the guest should contact their bank or card provider for more information.
Can I issue a refund as a credit instead?
Can I issue a refund as a credit instead?
Currently, Hospitable does not support issuing refunds as account credits for Direct bookings. Refunds are returned to the guest's original payment method. Hosts may always cancel without refund and book as Manual bookings using the previous payment but they will no longer have the protections (Chargeback and Damage) that Direct Premium booking has.
What if the guest only used part of their stay?
What if the guest only used part of their stay?
If the guest need to leave early or only used part of their stay, whether they receive a refund depends on the cancellation policy. You can always use the Send or Request Money feature to send out partial refund out of policy.
Can hosts issue partial refunds directly?
Can hosts issue partial refunds directly?
Yes. Hosts can issue partial (or full) refunds using the "Send or request money" button in the Hospitable inbox. This is available for up to 14 days after the reservation end date.
Why does "Send or Request Money" show a maximum refundable amount of $0?
Why does "Send or Request Money" show a maximum refundable amount of $0?
If you're trying to issue an ad hoc refund using the "Send or Request Money" feature and the maximum refundable amount shows $0.00, this typically means one of the following:
The payout has already settled and there isn't enough balance in your payout method to cover the refund. On Direct Premium, the refund is drawn from your payout method balance. If the balance is insufficient, the system shows $0 available.
The 14-day refund window has expired. Ad hoc refunds are only available for up to 14 days after the reservation end date.
A previous refund was already processed for this reservation that used up the refundable balance.
There's a temporary sync delay between the payment processor and Hospitable. This can occasionally cause the refundable amount to show incorrectly.
What to do:
Check your Payout History (Direct Premium) or Stripe dashboard (Direct Basic) to verify whether the payout has settled and if a balance is available.
If the refund window is still open and you believe a balance should be available, contact Hospitable support — we can investigate the payment status and process the refund manually if needed.
What if the automatic refund wasn't triggered after a cancellation?
What if the automatic refund wasn't triggered after a cancellation?
In rare cases, the automatic refund may not fire after a Direct booking is canceled.
This can happen when:
Your Stripe balance (Direct Basic) is insufficient to cover the refund.
There was a system delay or error in processing the cancellation.
The booking was denied rather than canceled, and the payment was captured instead of released.
What to do:
Check your Stripe dashboard (Direct Basic) or Payout History (Direct Premium) for any pending or failed refund attempts.
Try issuing a manual refund using the "Send or Request Money" feature in the reservation inbox.
If the "Send or Request Money" option shows a $0 maximum refund amount, this usually means the system doesn't have enough balance to process the refund. Contact Hospitable support — we can investigate the payment status and process the refund manually.
Important: Always process refunds through Hospitable (not directly through Stripe) to ensure the refund is properly reflected in your metrics, owner reports, and payout history. If for any reason you can't process the refund through Hospitable, contact Hospitable Support.
Can I refund a guest whose credit card has expired or been replaced?
Can I refund a guest whose credit card has expired or been replaced?
Yes. Refunds are always sent to the original payment method used at the time of booking. Even if the guest's card has expired or been replaced since then, most banks will automatically reroute the refund to the guest's current account. The guest does not need to provide a new card.
If the guest reports that the refund hasn't appeared after 10 business days, they should contact their bank or card issuer — the refund may have been processed on Hospitable's side but is being held by the financial institution.
A guest's booking was denied but they were still charged. What happened?
A guest's booking was denied but they were still charged. What happened?
In normal circumstances, when a booking is denied, the payment authorization is released and no charge is captured. However, in rare edge cases, a system issue may cause the payment to be settled even though the booking was denied.
If a guest reports they were charged for a denied booking:
Contact Hospitable support immediately with the reservation code.
Our team will verify the payment status in the payment processor (Adyen or Stripe) and issue a manual refund if the charge was incorrectly captured.
Let the guest know that refunds typically take 5–10 business days to appear after being issued.
This is not expected behavior and will be investigated by our team.