How I Handle Client Cancellations / Refunds with Grace and Boundaries

Business Tips

May 15

There’s no way around it, cancellations are just part of running a business. Whether someone signs up and changes their mind, buys a course they don’t watch, or suddenly disappears mid-contract, it’s going to happen. Some people acknowledge their missteps. Others don’t. But either way, it’s a reality we all have to navigate.

In my years working behind the scenes for business owners, I’ve learned how to hold space for real life and run a business rooted in integrity. This is how I handle it.

Understanding That Every Situation Is Different

People buy things for lots of reasons and sometimes they realize it’s not what they wanted. We’ve all been there. The key difference is how they respond when that happens.

Some are honest and reach out kindly. Others demand a refund after watching the whole course. (Yep, that happens more than you think.)

I’ve had situations where a client wanted to cancel because another participant (who lived in Europe) in the group responded to their question before the actual coach. Time zones are real. Sometimes expectations don’t match reality. And sometimes, a client just isn’t a great fit for the program. That’s okay.

But that’s also why empathy and discernment matter. There’s a difference between someone who’s hitting a hard season and someone who just doesn’t want to honor their agreement.

The Importance of Context

Every cancellation request comes with a story and I believe it’s my job to know that story.

If you're a VA or OBM managing client communications, it’s essential that you know the context. You can’t make an informed recommendation to your client (the coach or business owner) if you don’t understand the full picture.

Has this person shown up on calls?
Have they mentioned financial hardship, health concerns, or something major happening in their life?
Is this a one-time issue or part of a pattern?

That background makes all the difference in how you approach the conversation.

The Power of Policies

I cannot say this enough: have a clear cancellation and refund policy. And not just hidden in the fine print BUT visible and unavoidable.

That means:

Terms and policies clearly listed on your website
Details on the sales and checkout page
A checkbox for agreement before purchase
Reinforced in the client contract (especially for high-ticket items)

Clear boundaries make it much easier to extend grace when the situation calls for it. If something unexpected happens—illness, loss, hardship—you can reference your policy, then choose to bend it with intention.

When You Say No

Sometimes, the answer is no. And when that’s the case, I keep it professional and kind.

A simple script I’ve used:

“Thanks so much for reaching out.
In order to provide the best possible service to everyone who joins, we do have to honor our company policies regarding refunds.
To complete your purchase, you went through the full sales page, where course details and policies were clearly outlined, and agreed to our terms at checkout.
That said, we encourage you to explore the course content and take full advantage of what’s available. The value {Client Name} delivers is above and beyond.”

Here is an example of an extra line if its something they’ve purchased with a payment plan and they haven’t been released all of the content.

“If you still feel this isn’t the right fit, we’re happy to cancel your future payments and remove access to the course. Just let us know what feels best for you.”

Repeat back what they’ve said. Reflect their words to them. Sometimes, when people see it written out, it clicks that their request isn’t aligned with the agreement they made.

Behind-the-Scenes Costs to Consider

Cancellations aren’t just about refunding money, they cost time and energy, too.

Consider the work that goes into:

Creating contracts
Sending invoices
Onboarding and setup
Running kickoff calls
Admin time from your team

Even if you do offer a refund or release, you might choose to do a buyout. For example:

“We can cancel your remaining contract, but we’ll need to charge a 50% buyout of your remaining balance.”

This honors the time already invested.

Or, if refunding part of a payment, consider what’s already been used. If someone paid $100, and $25 went to admin and $25 toward coaching already delivered, you might only refund $50. It’s fair and honest.

Options That Honor the Agreement

I always offer alternatives before saying no outright. Two of my go-tos:

Extended payment plan: Spread their remaining payments over a longer time to make things more manageable.
Pause access: Keep the payment schedule but pause program access so they can return when life allows.

This way, you honor the agreement while still offering support and flexibility.

A Note on Empathy and Integrity

I’m from the South, so kindness comes naturally. But kindness and boundaries can coexist.

When people are under stress, especially financial, it can bring out the worst. Some are rude. Some apologize. I try to respond gently, firmly, and clearly … always. And if I need to repeat myself, I do it with a little more firmness the second time.

But kindness always wins. And holding strong boundaries is easier when you’ve led with empathy.