> For the complete documentation index, see [llms.txt](https://docs.podplay.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.podplay.app/payments/what-is-a-cancellation-policy.md). # Cancellation Policy ### Overview A Cancellation Policy is a rule that incentivizes Customers to cancel their Reservations or Event attendance as early as possible. When a Customer cancels at the last minute, the Club is left with a court or table that another Customer could have booked. That missed sale is lost inventory (inventory = court or table time). A Cancellation Policy with early-cancellation incentives lets the Club recover that lost value with another Customer booking. After years of testing, the default cancellation policy is: * 10-minute grace period after booking: free * 24 hours or more in advance: free * Less than 24 hours in advance: full cost When a Customer books a Reservation or joins an Event by mistake, there is a 10-minute grace period in which they can cancel for free. This grace period is independent of the cancellation policy, and can be removed if desired. {% hint style="warning" %} **The 10-minute grace period does not apply to Reservations or Events that start within 40 minutes**. If a Customer books something starting in 20 minutes and then cancels, they are charged, regardless of the Club's cancellation policy. {% endhint %} ### Reservations vs. Events There is a slight difference between the two policies and how they apply. #### Reservations **The Reservation cancellation policy** is set once, during onboarding if unique, inside the Company Settings page. You can edit the Reservation cancellation policy in the Company Settings page of the Dashboard if you have the Owner role.
#### Events **The Event cancellation policy** can be set inside each Event during [Event creation](https://podplay.gitbook.io/docs/events/create-an-event), or on the Settings tab after the Event programmed. Event cancellation policies can be changed on a whim and range from 1 month - a few hours in time.
It's very simple for both the Customer and an Admin to [cancel a Reservation](https://podplay.gitbook.io/docs/reservations/cancel-a-reservation) or an Event. {% hint style="info" %} **When a Customer cancels** a Reservation, your App's cancellation policy will apply. **When and staff cancels** a Reservation from the Dashboard, the system presumes the Admin knows what is best and no cancellation policy is applied (meaning, it is free of charge). {% endhint %} #### [Event Signup Cancellation Penalty](https://docs.podplay.app/system-restrictions/general-restrictions/reservation-and-event-restrictions#event-signup-cancellation-penalty) The Cancellation Penalty charges [Members](https://docs.podplay.app/memberships/types-of-memberships) who cancel an Event signup within the cancellation window when their cost to sign-up was $0 (whether by price or by perk like a [Pass](https://docs.podplay.app/play-passes/play-pass-overview)). When it's ON, Members are charged the Non-member admission rate for a late cancellation instead of their usual $0, and the fee can be edited to a unique amount that applies to everyone. **How the Penalty Works** The Event Signup Cancellation Penalty toggle is OFF by default. Anyone with the Owner role can change this and turn the penalty ON inside the Company Settings page of the Dashboard. Members who normally sign up for Events at $0 have their cancellation fee (which equals their admission rate) as $0. Turning ON the penalty charges the Customer the full signup price (the Non-member rate) when they cancel within the window, regardless of Membership tier. Non-members are already charged their admission rate for a late cancellation, so the penalty is aimed at Members who would otherwise cancel for free. {% hint style="warning" %} The penalty relies on the Non-member Admission Rate. If a Members-only Event has no Non-member Admission Rate above $0 and the Member's Admission Rate is $0, there is no cancellation penalty to charge. {% endhint %} **Setting a Unique Cancellation Fee** Once the penalty is ON, you can edit the cancellation fee to any amount in the Event settings. The amount you set applies to everyone: both Members and Non-members are charged that amount when they cancel within the window.
You can change it at any time and on a case-by-case basis per Event. * Set a nominal fee (for example $3, $5, or $10) to discourage late cancellations without charging the full admission rate. * Set the fee to $0 to let both Members and Non-members cancel for free. {% hint style="info" %} The fee is fully adjustable after the Event is live. You can start at $0 and raise it later, or lower it for a specific Event. {% endhint %} **Why Set the Fee Below the Admission Rate** The cancellation fee can be set lower than the admission rate to reward canceling over no-showing. A Non-member with a $15 admission rate who no-shows is still charged the full $15. If that same Non-member cancels, they're charged only the cancellation fee (for example $10), which frees the spot for someone else and costs them less than a no-show. **Pairing With No-Show Fees** Use the Cancellation Penalty alongside the No-Show Fee (the button above the attendee list) to reinforce the behavior you want. Pricing a cancellation lower than a no-show gives Customers a reason to cancel and open their spot rather than simply not showing up. ### Timing of Charge The cancellation fee is charged at the moment the Customer cancels. This is different from a normal Reservation, where the system waits until after the Reservation ends to bundle charges together. Because a canceling Customer is no longer visiting the Club, the system does not expect any further charges to bundle, so it captures the charge right away. #### Stripe Processing Every Customer transaction carries a Stripe fee. Because the cancellation fee is a charge, it carries a Stripe fee like any other transaction. ### Where to See Charged Cancellation Fees Every charged cancellation fee appears as its own `Cancellation Fee` purchase. You can find it: * On the Customer's profile, under the Purchases tab * In the Purchases section of the canceled Reservation or Event * On the Orders page, using the `Cancellation Fee` filter The purchase shows the fee amount, tax, and payment status, so front desk staff can answer "what was I charged for?" without digging into the original Reservation's charges. ### Handling of Passes If a Customer used a Pass for the sign-up or booking: * **Cancel outside the window** and the Pass is returned to the Customer (so long as said Pass is still viable and has not expired). * **Cancel inside the window** and the Pass is not returned. ### Cancellations with Bill Splitting Two situations come up with cancellations on a Reservation that uses Bill Splitting: 1. The Reservation Holder cancels the whole Reservation 2. An invitee cancels their own participation When the Reservation Holder cancels the Reservation, only the Reservation Holder is charged, if a charge applies. This is true whether or not their invited friends accepted the invite. Making only the Reservation Holder responsible for the cancellation fee gives the other Customers they were going to play with a chance to book another court. {% hint style="info" %} A Customer may call the Club and ask an Admin to cancel the Reservation so there is zero cancellation fee. It is up to the Club whether to allow Admin intervention. When an invitee cancels their participation, that invitee is not charged a cancellation fee, even within the cancellation window. For example, if a Customer books a Reservation, invites three friends, and one friend cancels, that friend pays nothing. This gives the Reservation Holder a chance to invite another Customer and fill the empty spot. {% endhint %} --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.podplay.app/payments/what-is-a-cancellation-policy.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.