Need to send money back to a client? You can issue a refund right in HoneyBook, and it's fee-free. You can refund a payment in full or in part, and your client receives the full amount, since any processing fees are added back to the refund. There are 2 ways to give a refund:
Before you start
Check your role: Only account owners, file owners, admins, and super admins can issue refunds
Use a desktop: Refunds can't be processed through the mobile app
Have a checking account ready: Refunds are funded by debiting your checking account. Credit cards and savings accounts can't be used. If it's your first time issuing a refund, you'll be prompted to link a checking account. HoneyBook uses Plaid to securely verify your bank information.
If Plaid can't connect your bank account, a Plaid connection error dialog will appear with more information so you can try again or use a different account.
Issue refund from a project
Find and open the file that holds the payment you want to refund
Look for the Invoice section in the file's Action Summary
Find the payment you want to refund, then select the three dot icon > Refund a custom amount
If the payment was made outside of HoneyBook and manually marked as paid, select Mark as refunded instead to keep your records accurate
Enter the amount to be refunded
If you don't refund the full amount now, you can return later to refund the rest
Review the payment method shown. This is the account your refund will be pulled from.
To use a different account, select Use a Different Bank Account or update it in your bank details.
Select Refund Now
Issue a refund from the Payments page
From the navigation menu, select Finance > Payments
Select the payment you want to refund
Under the payment's Total, select Issue refund
Enter the amount to be refunded
If you don't refund the full amount now, you can return later to refund the rest
Review the payment method shown. This is the account your refund will be pulled from.
To use a different account, select Use a Different Bank Account or update it in your bank details.
Select Refund Now
Your client should receive the full refund within 7-14 business days. If needed, you can edit the services or payment schedule in the file after the refund has been initiated.
đź“Ł First time issuing a refund?
Select Connect Bank Account and follow the instructions. If HoneyBook finds only one eligible checking account, it will be confirmed automatically. If there are multiple eligible accounts, choose the account you want to use in the refund account picker. Savings accounts cannot be used as the refund method.
What to expect after you refund
Once you issue a refund, your client receives the refund in their original payment method within 7-14 business days, excluding weekends and bank holidays.
You're only charged for the amount originally transferred to your bank account (the payment minus processing fees). Processing fees are added back to the refunded amount, so your client receives a full refund.
A refund marked as In Progress is within the 7-14 business day window, even if the debited amount has already left your account
When refunds can't be issued
You won't be able to issue a refund through HoneyBook in the following cases:
The payment was made outside of HoneyBook — you can manually mark these as refunded, but they won't process through the platform
The file has expired
The file is still in draft mode — either send the updated file before refunding, or delete the draft using the trash can icon in the draft menu
The payment is still processing — funds are still clearing the client's bank. Depending on the bank, the client may be able to call and cancel the payment. Otherwise, wait for the status to change from Processing to Paid before initiating a refund
A bank transfer payment is older than 170 days — bank transfers have a 170-day refund window. Credit card payments can be refunded at any time
Troubleshooting refund errors
Insufficient funds
HoneyBook checks your available funds using Plaid. If you don't have enough in the selected account, HoneyBook will show an insufficient funds message and you can choose a different eligible account or try again later:
Select a different account to try another eligible checking account
Or select Try Later and initiate the refund when funds are available
Grayed out accounts
Some sub-accounts may appear grayed out during the refund process. This means HoneyBook can't process refunds from that account type due to bank transfer limitations.
Other refund scenarios
Client used the wrong card and wants to repay
Issue a refund
Edit the file to add a new payment
Resend the file so the client can submit the new payment
Refund issued, but client no longer has access to original payment method
If a refund is sent to a closed card or bank account, what happens next depends on the client's banking situation:
If the client is still with the same bank (for example, they got a new card or closed one account but opened another at the same institution), the bank will often redirect the refund to their active account automatically.
If the client no longer banks there, the refund will fail and the funds will be returned to you. In that case, you'll need to refund the client outside of HoneyBook directly.
Refund needed before payment has been received
If a payment hasn't yet been deposited to your account, you can still issue a refund — you won't be charged since the funds haven't settled. Note that bank transfer payments must have a status of Paid before a refund can be initiated. Payments still in Processing status are not yet eligible.
Still have questions? Feel free to send us a message by clicking the Question Mark icon on any HoneyBook page. Our team is always happy to help!