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Cancellation Policy: Refund X% is calculated on full amount for stay- rather than amount "paid to date"

Status: Requested 3 Votes
Will and Alycia G
Jan 16, 2022 8:46 AM
Joined May, 2021 2 posts

Related OR Support Case #: (#73748)

 

Background: We took a booking through VRBO- but we handle the credit card transactions (including local meals and rooms tax) via Bambora. This booking was for a date in the future (few months out). The client chose to pay 50% up front at time of booking, and then the balance as the date approached. They had to cancel their reservation, but far enough out where our policy would give them 97% back- and we agreed to refund them that (knowing we'd most likely rebook). Keep in mind- they had only paid 50% of the total.

When we went in to handle the cancellation/refund- the automated options to refund our configured 97%. However, when I looked a little closer- I noticed that the refund was going to amount to 97% of the total for the stay. That means the amount being queued up to refund to the cancelling renters wouldn't be correct. I believe the correct amount to refund would be the 97% of what had been collected at that point, and the rest could be made to disappear in the OR backend accounting. 

Had I gone through with what OR was suggesting as part of the 

At least I think that's how it should work as an option at leas. 

 

Feature request: Take into account how much has been paid- and calculate refund % amount based on that number, or at least give a couple of different options on how to handle it when we get to the Cancellation screen. (ie. maybe add this option for 97% of amount collected *to date*). 

 

Caveat: So I'm still waiting on 100% confirmation back from my credit card processor (Bambora), but I'm 99% sure the fee (~2.5%-3%) is taken on every credit card swipe.  If that is indeed the case, then my feature request may be useful for people.

Cheryl R.
Jan 18, 2022 6:54 PM
Joined Jan, 2018 14 posts

I am having this same problem as well. 

Bob and Rhonda T
May 3, 2022 2:27 PM
Joined Aug, 2018 3 posts

We are having this problem as well. We use Bambora for processing.

Another issue is that the 97% refund calculates on each line item. The lodging tax collected should be refunded at 100% while the rental amount and fees (paid to us) should be refunded at 97%. 

Ken T
May 3, 2022 2:33 PM
OR Team Member Joined Aug, 2019 743 posts

the refund was going to amount to 97% of the total for the stay. That means the amount being queued up to refund to the cancelling renters wouldn't be correct.

No, that's actually correct, and what the cancellation policy states.

The lodging tax collected should be refunded at 100% while the rental amount and fees (paid to us) should be refunded at 97%. 

That is incorrect - you are keeping money paid by the guest, and must pay tax on it.  In nearly all jurisdictions, nothing is tax-free.

 

Bob and Rhonda T
May 3, 2022 3:28 PM
Joined Aug, 2018 3 posts

More detail on my post in hope this conversation may assist someone else…We were not attempting to keep any money. We were trying to refund a guest in full for the amount they paid to us (which was 1/2 of the total rental) subtracting only the Bambora refund transaction fee. Guest agreed to that. Instead we will mail a check to guest for total amount they paid to us and skip the ORez/Bambora online refund process. 

Ken T
May 3, 2022 3:32 PM
OR Team Member Joined Aug, 2019 743 posts

You're always able to override what OwnerRez calculates, and refund some other amount.  You can manually edit the Charges as you think best.