Refunds for Digital Products: What You Must Include to Stay Protected
Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. I am not a lawyer. Please consult a qualified attorney to ensure your refund policy is compliant with your country’s consumer protection laws.
If you sell digital products like online courses, templates, eBooks, or memberships, chances are you’ve already faced the dreaded question:
Can I get a refund?
Maybe it came in an email the day after a big launch. Or maybe someone downloaded your product, then asked for their money back claiming “it wasn’t what they expected.”
Refunds are one of those areas where creators often make decisions based on emotion, fear, or what they see others doing — rather than what’s actually required by law or best for business.
In this post, we’ll walk through the must-know legal basics, what to include in your digital product refund policy, and how to protect your business while still creating a great customer experience.
Are You Legally Required to Offer Refunds for Digital Products?
The short answer: It depends.
In the United States, you are generally not required to offer refunds on digital products — as long as your policy clearly says that sales are final and customers agree to that before purchase.
However, if your refund policy is vague, buried in fine print, or not presented until after the sale, you could run into trouble with:
Chargebacks through your payment processor
Customer disputes
Non-compliance with platform rules (like PayPal, Stripe, or Etsy)
If you sell to customers in the European Union or the UK, the rules are stricter. Under consumer protection laws, buyers usually have a 14-day cooling-off period. But even in those cases, you can waive that right as long as the customer acknowledges that the product is digital and they’re giving up their right to a refund once they download or access the content.
Bottom line: you need a clear, visible refund policy that customers agree to before completing a purchase.
What to Include in a Digital Product Refund Policy
Your refund policy should be easy to understand and cover the following areas:
Whether refunds are offered
“All digital product sales are final”
“We do not offer refunds due to the immediate access and downloadable nature of the product”
When refunds may be granted
“We only issue refunds in the case of duplicate purchases or technical issues that prevent access to the product”
How to request a refund (if allowed)
Provide a support email address and time frame
Clarify what information the customer should include
Your refund timeline
“Approved refunds are issued to the original payment method within 5–10 business days”
Acknowledgement of digital delivery
A checkbox at checkout that confirms the customer understands they are purchasing a non-refundable digital product
This language helps reduce chargebacks and protects you if a customer tries to dispute the charge through their credit card or PayPal.
Where to Display Your Refund Policy
Do not hide your refund policy in the footer or bury it in your terms and conditions. To keep your business protected, make sure your policy is:
Linked on your checkout page
Included in your order confirmation email
Visible in your product description (especially if you sell through a marketplace like Etsy or Creative Market)
If you use ThriveCart, SamCart, Kajabi, or other checkout platforms, add a required checkbox that says something like:
“I agree to the Terms of Use and understand that this purchase is non-refundable.”
This makes it harder for a customer to claim they didn’t know the refund policy — and most payment processors will side with you in a dispute if you have that proof.
Should You Ever Offer Refunds on Digital Products?
While you’re not required to offer refunds, there are times when it can make sense for your brand and your business.
Consider offering refunds when:
Someone made a duplicate purchase
A genuine technical issue prevented them from accessing the content
You have a guarantee-based offer (example: “Try it for 7 days risk-free”)
But even then, be specific. Add terms like:
Must request within 7 days
Must show proof of completion (for course refunds)
Refund excludes processing fees
Being upfront with expectations helps avoid abuse while still giving you flexibility to handle real issues with grace.
What About Courses and Memberships?
For online courses, many creators use a no-refund policy, especially once access to the course portal is granted. That’s legally allowed — but you must communicate it clearly up front.
Some creators offer a conditional guarantee, such as:
“Complete the first two modules and submit your worksheets within 14 days. If you’re not satisfied, we’ll refund you.”
For memberships, it’s common to have:
No refunds on the current billing period
No partial refunds for unused time
A policy that cancellations apply to the next billing cycle only
Whatever model you use, the key is making it clear from the start.
Handling Disputes and Chargebacks
Even with a rock-solid policy, someone might still try to file a chargeback.
To help protect yourself:
Keep documentation of your refund terms and the customer’s agreement
Include delivery confirmation (emails, login timestamps, downloads)
Respond to chargeback requests quickly with all supporting evidence
Payment processors like Stripe and PayPal usually rule in your favor if you can show the customer agreed to the terms and received the product.
Final Thoughts
You don’t have to offer refunds just because other people do. But you do need to be transparent, consistent, and legally compliant.
A clear refund policy helps:
Reduce disputes
Set realistic expectations
Protect your business income
Keep your reputation strong
Decide what works for you, make it easy to understand, and be sure your customers agree before they check out.
