[Elective Guide] - Refunds, 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

Refunds Cancellations Reversals Chargebacks

Returns and refunds are subject to the refund policy of the merchant

Refunds are fully controlled by you, the merchant, and can be initiated from the "Orders" dashboard. Once an order is refunded, we will adjust your next payout to account for the refund.

Adjustment Calculation

The adjustment for a cancellation is calculated as follows:

Adjustment = -[Original Payout Amount + 2.9% Payment Processing Fees on Refunded Transactions + $0.30 per Refunded Transaction]


A customer emails you informing that they had a medical emergency and can no longer participate in your program. They want a refund.

Payment Plan Details:

  • Original Order Total: $1,000 
  • Original Payout: $880
  • Refunded Amount: $500 (5 of 10 installments)
  • Number of Refunded Payments: 5

The adjustment for this calculation is:

-$896 = -[$880 + (2.9% * $500) + 5*0.30)]

This means that your next payout will be adjusted by -$896 to reflect this refund.


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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