[Elective Guide] - Cancellations, Reversals, and Chargebacks

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Elective may adjust your payouts in the cases of cancellations, reversals, or chargebacks. These cases are outlined in your merchant agreement which can be found under Settings in your Elective portal but we have also created this article to outline all of the cases where adjustments may occur and how they are calculated and handled.

Payout Adjustments

Cancellations Reversals Chargebacks

A cancellation is when Elective ends a customer's payment plan prematurely and stops collecting on all future payments.

Cancellations are fully controlled by you, the merchant. You may approve a cancellation if you wish to allow a student to back out of a program without refunding them. This is another tool for you to use as an alternative to issuing a refund.

If a student reaches out to Elective directly to request a cancellation, we will always ask you for approval before initiating the cancellation. This is completely within your control.

Once approved, we will initiate the cancellation. The adjustment amount will be taken out of your next payout.

Adjustment Calculation

The adjustment for a cancellation is calculated as follows:

Adjustment = -[Original Payout Amount – (Collected Amount – Elective Fee on Collected Amount)]

This adjusts back the uncollected portion of your initial payout.


A customer emails you informing that they had a medical emergency and can no longer participate in your program. They want to be removed from the program and stop making payments.

Payment Plan Details:

  • Original Order Total: $1,000
  • Original Payout: $880
  • Collected Amount: $500 (50% of the original order total - simplified for the example)
  • Elective Fee: 12%
  • Elective Fee on Collected Amount: $60

The adjustment for this calculation is:

-$440 = -[$880 - ($500 - $60)]

This means that your next payout will be adjusted by -$440 to reflect this cancellation.


Need More Help?

We're happy to answer any questions you might have. Reach out to us at help@elective.com and we'll help you get up and running in no time!

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