Refund Policy for SaaS
A SaaS refund policy that handles annual prepays, mid-cycle cancellations, free-trial conversions, and California ARL in one document.
- Annual prepay + mid-cycle cancellation handling
- California ARL compliance for the auto-renewal cancellation flow
- EU CRD 14-day handling for self-serve B2C buyers
A SaaS refund policy is different from an e-commerce one because the failure modes are different. The customer is not returning a physical good; they're asking for a refund on a subscription that already partially delivered. The rules that matter: California Automatic Renewal Law for the cancellation flow, EU CRD 14-day for self-serve B2C buyers, and operational clarity around annual prepays, mid-cycle cancellations, and free-trial-to-paid conversions. This page generates a refund policy calibrated to the SaaS reality.
Disclosures that matter for B2B SaaS.
Subscription model
Monthly vs. annual vs. usage-based. Each has a different refund profile. Monthly is typically "cancel anytime, no refund for partial month"; annual is "pro-rated refund for unused months" or "no refund, access through end of period".
California Automatic Renewal Law
For US customers buying via self-serve checkout: ARL requires clear and conspicuous disclosure, easy cancellation method (typically a button in the dashboard), and reminder notices for renewals on terms ≥ one year.
EU 14-day withdrawal for self-serve B2C
If you sell self-serve to EU consumers (not businesses), EU CRD 14-day withdrawal applies — unless the service has already been fully performed with the consumer's prior consent (Art. 16(a)). State the exception clearly.
Free-trial conversions
If you charge a card after a free trial, the conversion is a separate transaction. Disclose this clearly pre-charge and provide a "no refund if cancelled within X days" or "first month refundable" policy as appropriate.
Annual prepay refunds
Three common approaches: (a) no refund, access through end of period; (b) pro-rated refund for unused months; (c) full refund within first 30 days. Pick one and apply it consistently.
Enterprise contracts
Enterprise contracts (signed via order form, not self-serve checkout) typically override the standard refund policy. State this explicitly so support doesn't accidentally apply the wrong rule.
Where B2B SaaS policies usually go wrong.
No California ARL disclosure
Auto-renewal disclosure buried in the terms instead of clear-and-conspicuous near the price + checkout. Attorney general settlements have hit SaaS companies for this.
"All sales final" on annual prepays
EU CRD: if the service hasn't been fully performed, the 14-day withdrawal applies. AU Consumer Law: major-failure remedies apply. "All sales final" overrides both for B2C.
Inconsistent policy across self-serve / enterprise
Self-serve customers get one rule; enterprise customers get another. Without explicit separation in the policy, support staff apply the wrong rule and customers get inconsistent treatment.
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