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
From the Deel Home page, select the Organization settings gear icon. In All Settings, select Billing, payments & balances.
This card is described as Manage payment methods, balances and billing preferences.
✅ Step 2 - Click Refund Method
Select Refund methods to manage the payment methods your organization can use to receive refunds.
✅ Step 3 - Click Add refund method
In the Refund methods section, click Add.
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.
Select another method to add a different refund method, such as a bank account, to receive refunds externally. 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.
In the Add a refund method dialog, choose Leave refunds on Deel to keep funds on the platform. Select the Currency to use, then continue.
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
From Deel Home, select the Organization settings gear icon, then select Billing, payments & balances.
Select Refund methods, locate the refund balance you want to review, and click View next to it.
The selected refund balance detail page opens. Use the available currency selector to switch currencies when your organization holds balances in more than one currency.
From the balance detail page, clients can review additions and subtractions from the refund balance and download a CSV report of the transactions.
If There are no refund methods added appears, no refund balance is available to open. Select Add if you are responsible for configuring a refund method, or ask an organization administrator to configure one.
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, select Use Refunds Towards This Payment if a matching refund balance 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 Billing, payments & balances card.
Find the balance you want to withdraw from and click View on that balance card. Select the card that corresponds to the funds you intend to withdraw.
On the balance details page, confirm that eligible funds are available and select Withdraw funds.
Complete the withdrawal form with the required bank-account details and amount, then confirm the withdrawal.
If Withdraw funds is disabled, the selected balance has no eligible available funds or transactions and cannot be withdrawn. Open another applicable balance if one is available, or wait for eligible refund funds to appear.
If the client holds balances in multiple currencies, use the dropdown menu next to the currency code to switch between them.