This article describes how fees are handled when refunding a credit card payment processed by TripWorks on behalf of your customer.

Below, you'll find detailed examples of how this industry standard typically plays out for tour operators, followed by the actions we recommend taking to overcome this all-too-common hurdle.

Customer Fees

Most TripWorks tour operators pass fees to the traveler at the time of checkout. For example, if your tour retails for $100, and the total guest checkout fee is 8%:

• The customer pays the $108 at the time of booking.
• You, the tour operator, collect the cost of the trip ($100).
• TripWorks collects the $8 and uses this to pay credit card interchange costs and the cost of operating and supporting the platform.

When the customer requests a full refund from you, they are refunded their full payment of $108. Your next payout will contain a debit of $108. If your pending payout has insufficient funds to cover the debit, a charge may be deducted directly from your connected bank account.

Account Fees

In some cases, TripWorks tour operators choose to absorb some or all of the cost of fees and credit card processing rates. For example, if your tour retails for $100, the total platform cost is 8%, and your guest is charged 5%:

• The customer pays $105 at the time of booking.
• You, the tour operator, collect the cost of the trip, minus 3% — the portion of fees and costs you've chosen to absorb ($97).
• TripWorks collects the $8 and uses this to pay credit card interchange costs and the cost of operating and supporting the platform.

When the customer requests a full refund from you, they are refunded their full payment of $105. Your next payout will contain a debit of $108. If your pending payout has insufficient funds to cover the debit, a charge may be deducted directly from your connected bank account.

Suggested Solutions

Self-Service Rebooking

Reducing the number of refunds you have to issue overall is your first line of defense against the fees that linger following a credit card refund. Canceled events are one of the leading causes of tour industry refunds, so it's essential that you have a strategy in place to try and rebook as many customers as possible when you have to cancel an event.

Our Self-Service Rebooking tools are designed to notify booked customers that their event has been canceled, and to provide them with a user-friendly rebooking link. To learn more about this feature and how to activate it, review our Customer Rebooking video.

Alternative Refund Methods

One simple way to avoid absorbing the fees associated with credit card refunds is to issue a refund in the form of a gift cards credit, experience credits, or voucher. With this solution, the customer receives compensation equivalent to the cost of their initial payment, and you get to keep that payment while ultimately bypassing refund-related fees.

Charge a Cancelation Fee

Another approach to avoiding platform fees during a refund is to pass that cost along to your customers. For instance, if you create a cancelation policy that specifies a cancelation fee, and you design that fee to match the cost you would otherwise absorb in the event of a full refund, it is the customer — not you — who is impacted by the cancelation.