This article explains how clients can use the Deel platform to manage all refunds handling refunds and even use their refund balance for future transactions.
In This Article:
Using Refund Balance for Payments
There Are Three Scenarios When Refunds Occur on Deel:
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Contract Termination: When a contract is terminated, the deposit can be refunded to the client's Deel Refund balance automatically, after all pending payments have been settled. This is true for any contract that requires a deposit, which may include EOR employee agreements, Global Payroll direct employee agreements, or COR contracts for independent contractors.
Clients can customize their refund methods at the Organization level (using Org Admin permissions), or at the individual contract level.
Selecting Leave Refunds On Deel as the preferred refund method will automatically apply to all contracts that have a deposit unless an individual contract has a different saved refund method.
The balance funds must be in the same currency used for payments, in order to make future payments.
Note: If a refund method has been set at the contract level for an individual worker, this selection will stay the same even if refund preferences are changed at the organization level. If the final EOR invoice is netted off with the deposit, only the remaining portion of the deposit will be refunded.
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Overpayment: In the event that a client overpays a Deel bill, the excess amount will automatically be added to their refund balance. We will email the client to let them know that this has occurred.
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Worker Invoice Refunds: Should a client need to retract or modify a payment before it has been sent to a worker, they can contact Deel to request a refund.
If the funds have not yet been paid out to the worker, the payment can be cancelled and a refund can be processed. But if the worker has already received payment, the client will need to contact the worker directly to pursue a resolution.
Adding a Refund Method
There are two methods to receive refunds - Clients can now choose Bank Account or Leave Refunds on Deel balance. These options are available to make financial transactions on Deel as smooth and convenient as possible.
As the name suggests, Leave Refunds on Deel allows clients to leave their refunds directly in their Deel balance, in the same currency used for the original payment. This means that clients can access refunds immediately after they're processed, whether from a deposit or an invoice. Not only do these refund methods streamline the refund process, allowing clients to use these funds for future payments on the platform, but it also gives them the flexibility to withdraw the funds to any bank account they choose.
✅ Step 1 - Select the Organization Settings Icon and click the Billing & Payments card
Click View to manage payment methods and billing preferences.
✅ Step 2 - Click Refund Method
Select the Refund Methods menu to manage the payment methods that groups can use to receive refunds
✅ Step 3 - Click Add refund method
Please note that all deposits are returned in the currency of the original invoice.
Clients must add at least one refund method to their organization in order to receive a refund.
Clients have two methods to receive refunds: "Bank Account" or "Leave Refunds on Deel Balance".
- Select "Add Bank Account" to have the deposit refund credited into a bank account.
Complete all required fields and click Add.
Bank account information has now been added to the client's profile and Deel is now ready to process refunds.
Please note: We will refund the deposit in the same currency as the bank account provides. If the deposit is held in a different currency from the account added, we will process a currency exchange at the applicable FX rate at the time of the refund.
To avoid paying exchange rates, provide a bank account in the same currency as the deposit
- Selecting "Leave Refunds On Deel" as the preferred organization-level refund method will automatically apply to all contracts that have a deposit, regardless of worker type.
Clients can add a refund method per contract by navigating to the Refund Method section of the worker’s contract overview page.
If a refund method has been set at the contract level for an individual worker, this selection will stay the same even if refund preferences are changed at the organization level
If the client chooses to leave refunds on Deel, then the funds can be used for future payments. Clients can return the leftover funds from their Deel Balance back to a bank account at any time.
✅ Step 4 - Confirm currency
The balance funds must be in the same currency that was used for payments to be used for future payments. Please choose a currency that the client will use to make payments as the selected refund currency.
Clients can choose the currency that they wish the deposit refund to be converted to before we post the funds on their balance. However, once the refund arrives, the funds cannot be exchanged again into a different currency.
To withdraw an EOR deposit refund to a bank account, please ensure that the currency of the balance funds matches the bank account currency.
Accessing the Refund Balance
Select the Organization Settings icon, click View on the Billing & Payments card, and then select Refund Methods.
Refunds balance and the corresponding currency will be displayed.
Clients will see a dropdown option to switch between refund method currencies, if applicable.
Click View to access the balances page where a CSV file with all additions and subtractions from the refund balance can be downloaded.
Only clients with the Organization Admin role can access refund balances.
Using the Refund Balance for Payments
During the payment process on Deel, choose Pay via Manual Transfer.
After selecting the bank country and payment currency, clients will see an option to Use Refunds Towards This Payment if a refund balance in the chosen payment currency is available.
If the refund balance currency does not match the selected payment currency, clients will not see this option.
If the available refund balance covers the entire payment, it will be instantly marked as paid.
If there is a further remaining balance, clients will be prompted to settle the outstanding amount.
Taking Out the Refund Balance
Select Organization Settings and then select the Billings & Payments card.
Click View next to the desired balance for withdrawal, and then select Refund next to the balance that will be taken out of Deel.
Complete the required refund account details and specify the amount.
Once the client confirms the transaction details, the funds will be promptly transferred to the chosen bank account.
If the client holds balances in multiple currencies, use the dropdown menu next to the currency code to switch between them.