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:
There are three scenarios when refunds occur on Deel:
Contract Termination: When a contract is terminated, your deposit can be refunded to your 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 Shield contracts for independent contractors.
You can customize your refund methods at the Organization level (if you have Org Admin permissions), or at the individual contract level.
Selecting Leave Refunds On Deel as your preferred refund method will automatically apply to all contracts that have a deposit, unless an individual contract has a different saved refund method.
The funds on your balance must be in the same currency that you use for payments, in order to make future payments.
If you set up a refund method at the contract level for an individual worker, this selection will stay the same even if refund preferences are changed at the organization level
Overpayment: In the event that you overpay a Deel bill, the excess amount will automatically be added to your refunds balance. We will email you to let you know that this has occurred.
Worker Invoice Refunds: Should you need to retract or modify a payment before it has been sent to your worker, you can contact us to request a refund.
If the funds have not yet been paid out to the worker, the payment can be canceled and a refund can be processed. But if the worker has already received payment, you will need to contact your worker directly to pursue a resolution.
Adding A Refund Method
✅ Step 1 - Select Organization Settings
✅ Step 2 - Select the Billings & Payments box
Click View to manage your payment methods and billing preferences.
✅ Step 3 - Click Refund Method
Select the Refund Methods menu to manage the payment methods your groups can use to receive refunds
✅ Step 4 - Click Add refund method
Please note that all deposits are returned in the currency of the original invoice.
You must have add at least one refund method to your organization in order to receive your refund.
You have two methods to receive refunds: Bank account or leave refunds on Deel balance.
Select Add Bank Account if you wish for the deposit refund to be credited into a bank account.
Complete all required fields and click Add.
Your bank account information has now been added to your profile and is ready to receive your refund.
Please note: We will refund your deposit in the same currency as the bank account you provide. If your deposit is held in a different currency from the account you 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 your deposit
Selecting Leave Refunds On Deel as your preferred organization-level refund method will automatically apply to all contracts that have a deposit, regardless of worker type.
You can add a refund method per contract by navigating to the Refund Method section of the worker’s contract overview page.
If you set up a refund method at the contract level for a worker, this selection will stay the same even if refund preferences are changed at the organizational level.
If you choose leave refunds on Deel, then the funds can be used for future payments. You can return the leftover funds from your Deel Balance back to a bank account at any time.
✅ Step 5 - Confirm currency
The funds on your balance must be in the same currency that you use for payments to be used for future payments. Please choose a currency that you make payments with, as your selected refund currency.
You can choose the currency that you wish the deposit refund to be converted to before we post the funds on your balance. But once the refund arrives on your balance, you cannot exchange the funds again to a different currency.
To withdraw an EOR deposit refund to a bank account, please ensure that the currency on your balance funds matches the bank account currency.
Accessing Your Refund Balance
Select the Organization Settings tab, click View on the Billing & Payments box, and then select Refund Methods.
Your Refunds balance and the corresponding currency will be displayed.
You will see a dropdown option to switch between refund method currencies, if applicable.
Click View to access the balances page, where you can download a CSV file with all additions and subtractions from your refund balance.
Only clients with the Organization Admin role can access refund balances.
Using Your Refund Balance for Payments
During the payment process on Deel, choose Pay via Manual Transfer.
After selecting the bank country and payment currency, you will see an option to Use Refunds Towards This Payment if you have a refund balance in the chosen payment currency.
If the refund balance currency does not match the selected payment currency, you will not see this option.
If your refund balance covers the entire payment, it will be instantly marked as paid.
If there is a further remaining balance, you'll be prompted to settle the outstanding amount.
Taking out Your Refund Balance
Select Organization Settings and then select the Billings & Payments box.
Click View next to the desired balance for withdrawal, and then select Refund next to the balance you want to take out of Deel.
Complete the required refund account details and specify the amount.
Once you confirm the transaction details, the funds will be promptly transferred to your chosen bank account.
If you hold balances in multiple currencies, use the dropdown menu next to the currency code to switch between them.