> ## Documentation Index
> Fetch the complete documentation index at: https://docs.paypulse.cv/llms.txt
> Use this file to discover all available pages before exploring further.

# Cancellation policies

> Configure refund rules for subscription cancellations.

## How cancellation refunds work

When a customer cancels a subscription with a **FIXED** billing plan, PayPulse calculates a refund based on your configured cancellation policy.

<Note>
  METERED billing plans do not support refunds — usage is billed as consumed and cannot be prorated.
</Note>

## Refund types

### No refund (`none`)

Cancellation takes effect immediately. No money is returned.

### Full refund (`full`)

The customer receives a full refund if they cancel within `refund_window_days` of the billing period start. After that window, no refund.

### Percentage refund (`percentage`)

A fixed percentage of the plan amount is refunded, regardless of timing.

**Example:** Plan costs ₦25,000/month, policy is 50% → customer gets ₦12,500 back.

### Prorated refund (`prorate`)

Refund is proportional to the remaining time in the current billing period.

**Example:** Plan costs ₦25,000/month, customer cancels 10 days into a 30-day period:

* Remaining ratio: 20/30 = 0.667
* Refund: ₦25,000 × 0.667 = ₦16,666.67

## Cancellation fees

A `cancellation_fee` is deducted from the refund amount. This lets you cover administrative costs while still offering partial refunds.

**Example:** Prorated refund ₦16,666.67 with ₦1,000 fee → customer gets ₦15,666.67.

## Setting a default policy

Each project can have one default policy. When a subscription is cancelled and no specific policy is assigned, the default is used.

```bash theme={null}
curl -X POST https://api.paypulse.cv/api/v1/cancellation-policies \
  -H "Content-Type: application/json" \
  -H "X-Api-Key: pp_test_xxxx" \
  -H "Authorization: Bearer eyJhbGci..." \
  -d '{
    "name": "Standard Refund",
    "refund_type": "prorate",
    "prorate_refund": true,
    "is_default": true
  }'
```

## Common configurations

| Use case          | refund\_type | refund\_window\_days | prorate\_refund | cancellation\_fee |
| ----------------- | ------------ | -------------------- | --------------- | ----------------- |
| No refunds        | `none`       | —                    | —               | —                 |
| 30-day money back | `full`       | 30                   | —               | —                 |
| 50% refund        | `percentage` | —                    | —               | 0                 |
| Prorated with fee | `prorate`    | —                    | true            | 1000              |