1. Overview of Payment and Refund Structure
1.1 Payment Flow
When a guest books through Kong:
Guest Payment Breakdown:
- Tour/Activity Price: Paid directly to your connected payment gateway account
- Kong Booking Fee (1.8%): Automatically split to Kong's account
Example:
- Tour Price: RM 100.00
- Booking Fee (1.8%): RM 1.80
- Total Charged to Guest: RM 101.80
Payment Receipt:
- You receive: RM 100.00 (in your payment gateway account)
- Kong receives: RM 1.80 (automatically split)
1.2 Refund Responsibilities
You are responsible for:
- Refunding the tour/activity price according to your cancellation policy
- Processing refunds through your payment gateway account
- Communicating with guests about refund status
- Maintaining clear, fair cancellation policies
Kong is responsible for:
- Refunding the 1.8% booking fee only when you initiate a cancellation
- Platform functionality for managing cancellations
- Providing refund reporting and tracking
2. Your Cancellation Policy Requirements
2.1 Setting Your Cancellation Policy
You must establish a clear, written cancellation policy for your tours and activities that includes:
Required Elements:
- Cancellation deadlines (e.g., "72 hours before tour start")
- Refund percentages for different time periods
- No-show policy
- Late arrival policy
- Weather cancellation terms
- Force majeure provisions
Example Policy Structure:
- 7+ days before: 100% refund
- 3-6 days before: 50% refund
- 2 days or less: No refund
- No-shows: No refund
2.2 Displaying Your Policy
Your cancellation policy must be:
- Clearly displayed on booking pages before payment
- Included in booking confirmation emails
- Accessible to guests throughout the booking process
- Written in clear, understandable language
Kong's Platform allows you to configure and display your cancellation policy. Guests must acknowledge your policy before completing their booking.
2.3 Policy Compliance
Your cancellation policy must:
- Comply with Malaysian Consumer Protection Act 1999
- Be fair and reasonable
- Not contain misleading or deceptive terms
- Honor the terms you've published
Prohibited Practices:
- Refusing legitimate refunds per your stated policy
- Changing policy terms after booking without guest consent
- Imposing hidden cancellation fees
- Making refunds unreasonably difficult to obtain
3. Processing Guest-Initiated Cancellations
3.1 When a Guest Cancels
Your Process:
Step 1: Receive Cancellation Request
- Guests may contact you via email, phone, or Platform messaging
- Record the cancellation request with timestamp
- Acknowledge receipt within 24 hours
Step 2: Apply Your Cancellation Policy
- Determine refund eligibility based on your policy
- Calculate the refund amount
- Communicate the refund amount to the guest
Step 3: Process Refund Through Your Payment Gateway
- Log into your payment gateway account (Stripe, Xendit, etc.)
- Locate the original transaction
- Process the refund for the eligible tour price amount
- Processing time: 1-3 business days from your gateway to guest's bank
Step 4: Update Kong Platform
- Mark the booking as cancelled in Kong
- Record the refund amount processed
- Add cancellation notes for your records
3.2 Kong Booking Fee on Guest Cancellations
Important: Kong's 1.8% booking fee is non-refundable when guests cancel.
What this means:
- You refund only the tour price (or eligible portion)
- Kong retains the 1.8% booking fee
- Guests are informed that booking fees are non-refundable
Refund Amount Example:
- Original booking: RM 100 tour + RM 1.80 fee = RM 101.80 total
- Guest cancels with 100% refund eligibility
- You refund: RM 100.00 (tour price only)
- Kong retains: RM 1.80 (booking fee)
- Guest receives: RM 100.00
3.3 Partial Refunds
If your policy provides partial refunds:
Calculate based on tour price only:
- Original tour price: RM 100
- 50% refund policy applies
- You refund: RM 50.00
- Kong retains: RM 1.80 (booking fee remains non-refundable)
- Guest receives: RM 50.00
3.4 Payment Gateway Fees
Important Consideration:
Payment gateway providers (Stripe, Xendit) charge transaction fees that may be non-refundable. When you process a refund:
- You may lose the original transaction fee (typically 2-3%)
- Some gateways charge a fee for processing refunds
- Factor these costs into your cancellation policy
Example:
- Guest paid RM 100 tour price
- Your gateway kept RM 2.90 transaction fee (2.9%)
- You received RM 97.10 net
- Guest cancels and you refund RM 100
- Your actual loss: RM 2.90 (gateway fee not recovered)
Consider structuring your cancellation policy to account for these costs.
4. Processing Operator-Initiated Cancellations
4.1 When You Must Cancel
If you need to cancel a booking (weather, insufficient bookings, operational issues, etc.):
You must provide:
- Prompt notification to the guest (as soon as possible)
- Full refund of the tour/activity price
- Professional explanation and apology
Step-by-Step Process:
Step 1: Notify the Guest
- Contact guest via email and phone immediately
- Explain reason for cancellation
- Apologize for inconvenience
- Offer alternative dates if possible
Step 2: Process Full Tour Price Refund
- Refund 100% of the tour price through your payment gateway
- Process within 24 hours of cancellation
- Confirm refund with guest
Step 3: Notify Kong for Booking Fee Refund
- Mark booking as operator-cancelled in Kong Platform
- Kong will automatically process the 1.8% booking fee refund to the guest
- This happens separately from your refund
Step 4: Document Everything
- Record cancellation reason
- Keep communication records
- Note alternative arrangements offered
4.2 Kong Booking Fee Refunds on Operator Cancellations
When you cancel, guests receive:
- 100% tour price refund from you
- 100% booking fee refund from Kong
Kong's Refund Process:
- Automatic when you mark booking as operator-cancelled
- Processed within 3-5 business days
- Refunded to guest's original payment method
- No action required from you beyond marking the cancellation
Total Guest Refund:
- Your refund: RM 100.00 (tour price)
- Kong's refund: RM 1.80 (booking fee)
- Guest receives: RM 101.80 (full amount paid)
4.3 Repeated Operator Cancellations
Performance Standards:
Excessive operator-initiated cancellations may result in:
- Platform performance warnings
- Reduced visibility in distribution channels
- Account review
- Potential account suspension
Acceptable Cancellation Rate:
- Less than 5% of confirmed bookings
- Higher rates require documented, valid reasons (weather, force majeure, etc.)
Maintain high reliability to build guest trust and maximize bookings.
5. Special Cancellation Scenarios
5.1 Weather-Related Cancellations
When You Cancel Due to Weather:
- Treat as operator-initiated cancellation
- Provide full refund (tour price + booking fee refunded)
- Document weather conditions
- Offer alternative dates when possible
When Guest Cancels Due to Weather (but tour is running):
- Apply your standard cancellation policy
- Booking fee remains non-refundable
- Consider offering flexibility as good customer service
Best Practice: Include weather cancellation terms in your policy (e.g., "Tours cancelled by operator due to unsafe weather conditions receive full refunds").
5.2 No-Shows
Guest No-Shows:
- Apply your no-show policy (typically no refund)
- Booking fee is non-refundable
- Document the no-show with timestamp
- Consider communication in case of legitimate emergency
Operator No-Shows (you don't show up):
- Treat as operator cancellation
- Full refund required (tour price + booking fee)
- May violate Terms and Conditions
- Could result in account penalties
5.3 Late Arrivals
Handling Late Guests:
Your policy should address:
- Grace period for late arrival (e.g., 15 minutes)
- Refund policy if guest misses departure
- Communication expectations
Recommended Approach:
- Allow reasonable grace period
- Attempt to accommodate if possible
- If departure missed, apply your cancellation policy
- Document arrival time and communication
5.4 Medical Emergencies and Force Majeure
Guest Medical Emergencies:
- Not required to refund beyond your stated policy
- Consider offering flexibility as goodwill
- Suggest guests use travel insurance
- Document the situation
Force Majeure Events: (Natural disasters, pandemics, government restrictions)
- Assess situation case-by-case
- Consider offering credits instead of refunds if cash flow is constrained
- Communicate proactively with affected guests
- Kong may waive booking fee refund requirements during declared emergencies
Best Practice: Include force majeure provisions in your cancellation policy.
6. Refund Processing Timeline
6.1 Standard Timeline
Your Processing:
- Decision on refund eligibility: Within 24 hours of request
- Initiate refund through payment gateway: Within 1-3 business days
- Gateway processes refund: 1-3 business days
- Guest's bank credits account: 5-10 business days
- Total: 7-16 business days typically
Kong Booking Fee Refunds (Operator Cancellations):
- Triggered by your cancellation in Platform
- Kong processes: 3-5 business days
- Guest's bank credits: 5-10 business days
- Total: 8-15 business days typically
6.2 Your Service Standards
Recommended Response Times:
- Acknowledge cancellation requests: Within 24 hours
- Determine refund eligibility: Within 24-48 hours
- Process approved refunds: Within 3 business days
- Respond to refund inquiries: Within 48 hours
Quick refund processing improves guest satisfaction and reduces disputes.
7. Disputes and Chargebacks
7.1 Handling Refund Disputes
When a Guest Disputes Your Refund Decision:
Step 1: Review Your Policy
- Confirm your policy was applied correctly
- Check booking confirmation showed policy clearly
- Review all communication records
Step 2: Communicate with Guest
- Explain your policy and its application
- Provide documentation (booking confirmation, policy, etc.)
- Listen to guest's concerns
- Consider reasonable compromises
Step 3: Escalation
- If unresolved, guest may contact Kong
- Kong may facilitate communication
- Kong cannot override your refund decision
- Final decision rests with you (unless clear policy violation)
7.2 Chargeback Management
Understanding Chargebacks:
A chargeback occurs when a guest disputes the charge with their bank/card issuer. This is separate from refund requests.
Your Responsibilities:
When a Chargeback Occurs: 1. Your payment gateway will notify you 2. You have limited time to respond (typically 7-10 days) 3. You must provide evidence to dispute the chargeback
Evidence to Gather:
- Booking confirmation with cancellation policy
- Communication records with guest
- Proof of service delivery (for completed tours)
- Your cancellation policy as displayed at booking
- Refund correspondence (if applicable)
Chargeback Outcomes:
- You win: Funds are returned to your account, guest's card is re-charged
- You lose: Funds are deducted, plus chargeback fee (RM 60-100 typically)
7.3 Preventing Chargebacks
Best Practices:
- Display cancellation policy clearly before booking
- Require policy acknowledgment at checkout
- Respond quickly to cancellation requests
- Process legitimate refunds promptly
- Document all guest communications
- Deliver services as described in listings
- Follow your stated policies consistently
High Chargeback Rates Can Result In:
- Increased payment gateway fees
- Payment gateway account restrictions or termination
- Platform performance warnings
- Account review or suspension
8. Your Legal Obligations
8.1 Malaysian Consumer Protection Requirements
Under the Consumer Protection Act 1999 and related regulations:
You must:
- Provide clear, accurate cancellation terms before purchase
- Honor the cancellation policy you've published
- Process legitimate refunds within reasonable timeframes
- Not engage in misleading or deceptive conduct
- Provide receipts and records of transactions
You cannot:
- Impose unfair contract terms
- Refuse refunds arbitrarily
- Make false or misleading representations
- Engage in unconscionable conduct
8.2 Record Keeping
Required Records:
- All booking transactions and confirmations
- Cancellation requests and responses
- Refund processing records
- Communication with guests
- Cancellation policy versions
- Payment gateway transaction records
Retention Period:
- Minimum 7 years for tax purposes
- Longer if required by specific regulations
- Digital records acceptable
8.3 Tax Implications
Important Tax Considerations:
Refunded Amounts:
- May affect your taxable revenue calculations
- Consult with your accountant on proper treatment
- Maintain detailed refund records for tax filings
- Report accurately on SST and income tax returns
Payment Gateway Fees:
- Generally deductible as business expenses
- Including fees lost on refunds
Booking Fees:
- Paid to Kong, not part of your revenue
- You do not report Kong's booking fees in your taxes
9. Best Practices for Refund Management
9.1 Creating Fair Policies
Balanced Approach:
- Protect your business from revenue loss
- Provide reasonable flexibility for guests
- Consider industry norms in your market
- Be competitive with similar operators
Policy Examples by Tour Type:
Short Tours (2-4 hours):
- 48 hours: 100% refund
- 24-47 hours: 50% refund
- Less than 24 hours: No refund
Full-Day Tours:
- 7+ days: 100% refund
- 3-6 days: 50% refund
- Less than 3 days: No refund
Multi-Day Packages:
- 30+ days: 100% refund
- 15-29 days: 75% refund
- 8-14 days: 50% refund
- 7 days or less: 25% refund
Adjust based on:
- Your operational costs
- Rebooking likelihood
- Deposit and prepayment amounts
- Industry standards
9.2 Communication Excellence
Proactive Communication:
- Send booking confirmations immediately
- Include cancellation policy in all communications
- Send reminders 7 days and 24 hours before tour
- Provide easy cancellation contact methods
Handling Cancellations:
- Respond promptly and professionally
- Show empathy for guest situations
- Explain your policy clearly
- Offer alternatives when possible (reschedule, credits, etc.)
- Process refunds quickly
Template Responses:
Consider preparing templates for:
- Cancellation acknowledgment
- Refund approval notifications
- Refund denial explanations
- Operator-initiated cancellation apologies
- Weather cancellation notices
9.3 Using Kong Platform Features
Cancellation Management Tools:
- Mark bookings as cancelled with reason codes
- Track refund processing status
- Generate cancellation reports
- Monitor cancellation rate metrics
- Set automated cancellation notifications
Financial Tracking:
- View booking fee calculations
- Track refund transactions
- Generate financial reports
- Export data for accounting
10. Exceptions and Special Situations
10.1 Group Bookings
Handling Group Cancellations:
Full Group Cancellation:
- Apply your cancellation policy to total booking amount
- Process single refund for entire group
- One booking fee for entire booking
Partial Group Cancellation:
- Determine if your policy allows participant reduction
- Calculate refund based on reduced participant number
- Consider operational impact (minimum group size)
- Original booking fee is not refundable (applied to original booking)
Best Practice: Specify group cancellation terms in your policy.
10.2 Repeat or Serial Cancellations
Guest Pattern Behavior:
If a guest repeatedly books and cancels:
- Document the pattern
- You may decline future bookings
- Consider requiring non-refundable deposits
- Contact Kong if suspicious behavior
Preventing Abuse:
- Set reasonable cancellation deadlines
- Consider deposit requirements for repeat offenders
- Flag unusual patterns to Kong support
10.3 Platform Technical Issues
If Kong Platform Causes Booking Errors:
- Kong will work with you to resolve
- Affected guests entitled to full refund (tour price + booking fee)
- Kong may cover costs depending on circumstances
- Document technical issues thoroughly
Report immediately:
- Booking system failures
- Payment processing errors
- Inventory synchronization issues
- Communication delivery failures
11. Kong's Booking Fee Policies
11.1 When Booking Fees Are Non-Refundable
Kong retains the 1.8% booking fee for:
- Guest-initiated cancellations (regardless of your refund policy)
- No-shows
- Guest late arrivals resulting in missed tours
- Any cancellation initiated by the guest
Rationale: The booking fee covers Platform services rendered:
- Processing the booking transaction
- Payment facilitation
- Communication infrastructure
- System availability
These services are provided regardless of cancellation.
11.2 When Booking Fees Are Refunded
Kong refunds the 1.8% booking fee when:
- You (operator) cancel the booking
- Platform technical failure causes booking error
- Extreme circumstances at Kong's discretion
Refund Process:
- Automatic when marked as operator cancellation
- Processed separately to guest
- No action required from you
11.3 Booking Fee Disputes
If you believe a booking fee should be refunded due to exceptional circumstances:
Contact Kong:
- Email: blake@bookwithkong.com
- Subject: "Booking Fee Refund Request - [Booking Reference]"
- Provide: Full explanation and supporting documentation
Kong will review:
- Circumstances of the cancellation
- Supporting evidence
- Platform records
- Your account history
Decision is final: Kong has sole discretion on booking fee refunds outside standard policy.
12. Prohibited Practices
You may not:
Related to Refunds:
- Refuse legitimate refunds per your stated policy
- Delay refunds unreasonably to gain interest
- Charge hidden cancellation fees not in your policy
- Process partial refunds without clear policy basis
- Retaliate against guests who request refunds
Related to Policies:
- Change cancellation terms after booking without consent
- Provide different policies to different guests
- Hide or obscure cancellation terms at booking
- Make refund process intentionally difficult
- Misrepresent your cancellation policy
Consequences:
- Platform performance warnings
- Mandatory policy corrections
- Account suspension or termination
- Liability for guest damages
- Legal action for consumer law violations
13. Reporting and Monitoring
13.1 Your Dashboard Metrics
Kong Platform provides:
- Cancellation rate tracking
- Refund amount totals
- Booking fee calculations
- Guest satisfaction related to refunds
- Chargeback rate monitoring
Review regularly to:
- Identify trends
- Adjust policies if needed
- Improve guest satisfaction
- Reduce cancellations
13.2 Performance Standards
Healthy Metrics:
- Cancellation rate: < 10% (including guest and operator cancellations)
- Operator cancellation rate: < 5%
- Chargeback rate: < 1%
- Refund dispute resolution: < 5% of cancellations
Action Items:
- High cancellation rates: Review policies, pricing, product descriptions
- High chargeback rates: Improve communication, policy clarity, service delivery
- High operator cancellations: Address operational reliability
14. Updates and Changes
Note: Section 14 content beyond this point may be truncated. Please verify from live URL `https://www.bookwithkong.com/legal-terms/refund-policy` and add any missing content.
14.1 Changes to This Policy
Kong may update this Refund and Cancellation Policy with 30 days notice for material changes. [Continues — please verify from live URL]
By using the Kong Platform, you acknowledge that you have read, understood, and agree to be bound by this Refund and Cancellation Policy.