Refunds are not issued automatically via Guesty upon cancellation, but you can issue a refund manually. The funds are returned to the original payment method, whether the credit card is valid or expired.
Refunds are carried out immediately by the payment processors. Once you click the Issue refund button, it can't be reversed and will go through until fully executed.
Important:
Issuing a refund on a reservation that was not canceled will result in a balance due for the reservation. To ensure the folio remains accurate and reflects the correct financial records, adjust the folio item accordingly after issuing the refund. This adjustment helps prevent discrepancies in the reservation's financial summary.
Payments processed through Guesty should be refunded in Guesty. The refund value must be greater than 1.00.
Airbnb
Refunds for Airbnb reservations must be handled through the Airbnb Resolution Center. Once an Airbnb Resolution Center issue has been closed, it will sync with Guesty as a line item in the guest folio.
Refunds for multiple payments
When refunding multiple payments for a single guest, each payment must be refunded individually, up to the amount of the payment itself. For example, if a guest made two payments of 50 USD for a total of 100 USD, issue two refunds.
Issue a refund
Step by step:
- Sign in to your Guesty account.
- In the top navigation bar, click More and select Reservations.
- Click the relevant reservation.
- At the top right, click Balance due / Payout.
- In the "Payments" section, click Refund next to the relevant payment.
- In the pop-up, verify the amount and click Issue refund.
Issue a recorded payment refund
To issue a refund for a recorded payment, click Mark as refunded on the right. 
If necessary, you can edit your recorded payment refund.
Once a refund is made via Guesty, the request is immediately sent to Stripe. Guests should receive the refund within five-ten business days, depending on the credit card’s issuing bank.
Refunds to expired credit cards
Refunds can be processed to expired credit cards without issue. When refunding to an expired card, the refund is still sent to the original payment method, and the guest's card issuer will typically redirect the funds to the customer's replacement card. The standard refund processing time of five to ten business days still applies, depending on the guest's bank. There's no need to request alternative refund methods when dealing with expired cards.
Handling balances due after refunds
When a reservation shows a balance due after issuing a refund, this typically indicates that the refund amount exceeded the original payment. This situation creates a negative balance that appears as an amount owed by the guest. If this occurs, you should verify the refund amount against the original payment to ensure accuracy. If the refund was processed correctly but a balance still appears, you may need to manually adjust the reservation balance or contact Guesty Support for assistance. Remember that the system will continue to show this balance until it's properly reconciled, which could affect your financial reporting.
Recording refunds processed outside of Guesty
You can record refunds that were processed outside of Guesty for charges originally processed through the Guesty system. To properly document these external refunds, navigate to the reservation's financial tab and select "Record Manual Refund." This ensures your accounting remains accurate even when refunds occur through alternative channels. When recording the manual refund, be sure to include the date the refund was processed externally, the amount refunded, and any relevant notes about why the refund was processed outside the system. This maintains financial transparency and keeps your reservation records complete and accurate.
