From c1dbb7cffd8d7a9b87511264a68a9ca5420e4eb1 Mon Sep 17 00:00:00 2001
From: Amit Sharma <74371312+Amit91848@users.noreply.github.com>
Date: Mon, 6 Jan 2025 17:06:37 +0530
Subject: [PATCH] feat: refund policies for payment apps (#18428)

* feat: refund policies for payment apps

* tests for payment refund

---------

Co-authored-by: Peer Richelsen <peeroke@gmail.com>
---
 .../components/booking/BookingListItem.tsx    |   2 +-
 apps/web/public/static/locales/en/common.json |   6 +
 .../utils/bookingScenario/bookingScenario.ts  |  28 +++-
 .../EventTypeAppSettingsInterface.tsx         |  81 +++++++++-
 packages/app-store/stripepayment/zod.ts       |   5 +
 .../BookEventForm/BookEventForm.tsx           |   2 +-
 .../components/event-meta/Details.tsx         |   2 +-
 .../bookings/lib/handleCancelBooking.ts       |   8 +
 ...ok.test.ts => handleCancelBooking.test.ts} | 139 +++++++++++++++-
 .../features/bookings/lib/handleNewBooking.ts |   2 +-
 .../ee/payments/components/PaymentPage.tsx    |   2 +-
 .../components/EventTypeDescription.tsx       |   2 +-
 .../tabs/instant/EventInstantTab.tsx          |   2 +-
 .../tabs/recurring/EventRecurringTab.tsx      |   2 +-
 packages/lib/getPaymentAppData.ts             |   8 +-
 packages/lib/payment/handlePaymentRefund.ts   |  32 ++++
 .../lib/payment/processPaymentRefund.test.ts  | 151 ++++++++++++++++++
 packages/lib/payment/processPaymentRefund.ts  |  86 ++++++++++
 packages/lib/payment/types.ts                 |   5 +
 .../hooks/usePlatformTabsNavigations.tsx      |   2 +-
 .../event-types/hooks/useTabsNavigations.tsx  |   2 +-
 .../event-types/payments/PaymentForm.tsx      |   2 +-
 .../viewer/bookings/confirm.handler.ts        |  73 +--------
 23 files changed, 559 insertions(+), 85 deletions(-)
 rename packages/features/bookings/lib/handleCancelBooking/test/{webhook.test.ts => handleCancelBooking.test.ts} (50%)
 create mode 100644 packages/lib/payment/handlePaymentRefund.ts
 create mode 100644 packages/lib/payment/processPaymentRefund.test.ts
 create mode 100644 packages/lib/payment/processPaymentRefund.ts
 create mode 100644 packages/lib/payment/types.ts

diff --git a/apps/web/components/booking/BookingListItem.tsx b/apps/web/components/booking/BookingListItem.tsx
index 3cfa857580..845fd65e2a 100644
--- a/apps/web/components/booking/BookingListItem.tsx
+++ b/apps/web/components/booking/BookingListItem.tsx
@@ -11,7 +11,7 @@ import "@calcom/dayjs/locales";
 import ViewRecordingsDialog from "@calcom/features/ee/video/ViewRecordingsDialog";
 import classNames from "@calcom/lib/classNames";
 import { formatTime } from "@calcom/lib/date-fns";
-import getPaymentAppData from "@calcom/lib/getPaymentAppData";
+import { getPaymentAppData } from "@calcom/lib/getPaymentAppData";
 import { useCopy } from "@calcom/lib/hooks/useCopy";
 import { useLocale } from "@calcom/lib/hooks/useLocale";
 import { useGetTheme } from "@calcom/lib/hooks/useTheme";
diff --git a/apps/web/public/static/locales/en/common.json b/apps/web/public/static/locales/en/common.json
index 21eb02b616..3b64f74d62 100644
--- a/apps/web/public/static/locales/en/common.json
+++ b/apps/web/public/static/locales/en/common.json
@@ -2737,6 +2737,12 @@
   "month_to_date": "month to date",
   "year_to_date": "year to date",
   "custom_range": "custom range",
+  "refund_policy": "Refund Policy",
+  "always": "Always",
+  "never": "Never",
+  "payment_option": "Payment Option",
+  "if_cancelled": "If cancelled",
+  "before": "before",
   "show_all_columns": "Show all columns",
   "toggle_columns": "Toggle columns",
   "no_columns_found": "No columns found",
diff --git a/apps/web/test/utils/bookingScenario/bookingScenario.ts b/apps/web/test/utils/bookingScenario/bookingScenario.ts
index 2d6de0a36d..4aec51d3e5 100644
--- a/apps/web/test/utils/bookingScenario/bookingScenario.ts
+++ b/apps/web/test/utils/bookingScenario/bookingScenario.ts
@@ -24,7 +24,7 @@ import type {
   WorkflowTriggerEvents,
   WorkflowMethods,
 } from "@calcom/prisma/client";
-import type { SchedulingType, SMSLockState, TimeUnit } from "@calcom/prisma/enums";
+import type { PaymentOption, SchedulingType, SMSLockState, TimeUnit } from "@calcom/prisma/enums";
 import type { BookingStatus } from "@calcom/prisma/enums";
 import type { teamMetadataSchema } from "@calcom/prisma/zod-utils";
 import type { userMetadataType } from "@calcom/prisma/zod-utils";
@@ -74,6 +74,21 @@ type InputWorkflow = {
   sendTo?: string;
 };
 
+type InputPayment = {
+  id?: number;
+  uid: string;
+  appId?: string | null;
+  bookingId: number;
+  amount: number;
+  fee: number;
+  currency: string;
+  success: boolean;
+  refunded: boolean;
+  data: Record<string, any>;
+  externalId: string;
+  paymentOption?: PaymentOption;
+};
+
 type InputWorkflowReminder = {
   id?: number;
   bookingUid: string;
@@ -108,6 +123,7 @@ export type ScenarioData = {
   bookings?: InputBooking[];
   webhooks?: InputWebhook[];
   workflows?: InputWorkflow[];
+  payment?: InputPayment[];
 };
 
 type InputCredential = typeof TestData.credentials.google & {
@@ -535,6 +551,12 @@ async function addWebhooksToDb(webhooks: any[]) {
   });
 }
 
+async function addPaymentToDb(payment: InputPayment[]) {
+  await prismock.payment.createMany({
+    data: payment,
+  });
+}
+
 async function addWebhooks(webhooks: InputWebhook[]) {
   log.silly("TestData: Creating Webhooks", safeStringify(webhooks));
 
@@ -810,6 +832,7 @@ export async function createBookingScenario(data: ScenarioData) {
   await addWebhooks(data.webhooks || []);
   // addPaymentMock();
   const workflows = await addWorkflows(data.workflows || []);
+  await addPaymentToDb(data.payment || []);
 
   return {
     eventTypes,
@@ -1304,6 +1327,7 @@ export function getScenarioData(
     webhooks,
     workflows,
     bookings,
+    payment,
   }: {
     organizer?: ReturnType<typeof getOrganizer>;
     eventTypes: ScenarioData["eventTypes"];
@@ -1313,6 +1337,7 @@ export function getScenarioData(
     webhooks?: ScenarioData["webhooks"];
     workflows?: ScenarioData["workflows"];
     bookings?: ScenarioData["bookings"];
+    payment?: ScenarioData["payment"];
   },
   org?: { id: number | null } | undefined | null
 ) {
@@ -1373,6 +1398,7 @@ export function getScenarioData(
     webhooks,
     bookings: bookings || [],
     workflows,
+    payment,
   } satisfies ScenarioData;
 }
 
diff --git a/packages/app-store/stripepayment/components/EventTypeAppSettingsInterface.tsx b/packages/app-store/stripepayment/components/EventTypeAppSettingsInterface.tsx
index d0b4eac70c..ceae9d195d 100644
--- a/packages/app-store/stripepayment/components/EventTypeAppSettingsInterface.tsx
+++ b/packages/app-store/stripepayment/components/EventTypeAppSettingsInterface.tsx
@@ -1,8 +1,11 @@
+import * as RadioGroup from "@radix-ui/react-radio-group";
 import { useState, useEffect } from "react";
 
 import type { EventTypeAppSettingsComponent } from "@calcom/app-store/types";
+import { classNames } from "@calcom/lib";
 import { useLocale } from "@calcom/lib/hooks/useLocale";
-import { Alert, Select, TextField } from "@calcom/ui";
+import { RefundPolicy } from "@calcom/lib/payment/types";
+import { Alert, RadioField, Select, TextField } from "@calcom/ui";
 
 import {
   convertToSmallestCurrencyUnit,
@@ -30,6 +33,8 @@ const EventTypeAppSettingsInterface: EventTypeAppSettingsComponent = ({
   const paymentOption = getAppData("paymentOption");
   const paymentOptionSelectValue = paymentOptions.find((option) => paymentOption === option.value);
   const requirePayment = getAppData("enabled");
+  const getSelectedOption = () =>
+    options.find((opt) => opt.value === (getAppData("refundCountCalendarDays") === true ? 1 : 0));
 
   const { t } = useLocale();
   const recurringEventDefined = eventType.recurringEvent?.count !== undefined;
@@ -54,8 +59,16 @@ const EventTypeAppSettingsInterface: EventTypeAppSettingsComponent = ({
         setAppData("paymentOption", paymentOptions[0].value);
       }
     }
+
+    if (!getAppData("refundPolicy")) {
+      setAppData("refundPolicy", RefundPolicy.NEVER);
+    }
   }, [requirePayment, getAppData, setAppData]);
 
+  const options = [
+    { value: 0, label: t("business_days") },
+    { value: 1, label: t("calendar_days") },
+  ];
   return (
     <>
       {recurringEventDefined && (
@@ -109,7 +122,7 @@ const EventTypeAppSettingsInterface: EventTypeAppSettingsComponent = ({
           </div>
           <div className="mt-4 w-60">
             <label className="text-default mb-1 block text-sm font-medium" htmlFor="currency">
-              Payment option
+              {t("payment_option")}
             </label>
             <Select<Option>
               data-testid="stripe-payment-option-select"
@@ -122,7 +135,14 @@ const EventTypeAppSettingsInterface: EventTypeAppSettingsComponent = ({
                 return { ...option, label: t(option.label) || option.label };
               })}
               onChange={(input) => {
-                if (input) setAppData("paymentOption", input.value);
+                if (input) {
+                  setAppData("paymentOption", input.value);
+                  if (input.value === "HOLD") {
+                    setAppData("refundPolicy", RefundPolicy.NEVER);
+                    setAppData("refundDaysCount", undefined);
+                    setAppData("refundCountCalendarDays", undefined);
+                  }
+                }
               }}
               className="mb-1 h-[38px] w-full"
               isDisabled={seatsEnabled || disabled}
@@ -132,6 +152,61 @@ const EventTypeAppSettingsInterface: EventTypeAppSettingsComponent = ({
           {seatsEnabled && paymentOption === "HOLD" && (
             <Alert className="mt-2" severity="warning" title={t("seats_and_no_show_fee_error")} />
           )}
+
+          {paymentOption !== "HOLD" && (
+            <div className="mt-4 w-full">
+              <label className="text-default mb-1 block text-sm font-medium">{t("refund_policy")}</label>
+              <RadioGroup.Root
+                disabled={disabled || paymentOption === "HOLD"}
+                defaultValue="never"
+                className="flex flex-col space-y-2"
+                value={getAppData("refundPolicy")}
+                onValueChange={(val) => {
+                  setAppData("refundPolicy", val);
+                  if (val !== RefundPolicy.DAYS) {
+                    setAppData("refundDaysCount", undefined);
+                    setAppData("refundCountCalendarDays", undefined);
+                  }
+                }}>
+                <RadioField className="w-fit" value={RefundPolicy.ALWAYS} label={t("always")} id="always" />
+                <RadioField className="w-fit" value={RefundPolicy.NEVER} label={t("never")} id="never" />
+                <div className={classNames("text-default mb-2 flex flex-wrap items-center text-sm")}>
+                  <RadioGroup.Item
+                    className="min-w-4 bg-default border-default flex h-4 w-4 cursor-pointer items-center rounded-full border focus:border-2 focus:outline-none ltr:mr-2 rtl:ml-2"
+                    value="days"
+                    id="days">
+                    <RadioGroup.Indicator className="after:bg-inverted relative flex h-4 w-4 items-center justify-center after:block after:h-2 after:w-2 after:rounded-full" />
+                  </RadioGroup.Item>
+                  <div className="flex items-center">
+                    <span className="me-2 ms-2">&nbsp;{t("if_cancelled")}</span>
+                    <TextField
+                      labelSrOnly
+                      type="number"
+                      className={classNames(
+                        "border-default my-0 block w-16 text-sm [appearance:textfield] ltr:mr-2 rtl:ml-2"
+                      )}
+                      placeholder="2"
+                      disabled={disabled}
+                      min={0}
+                      defaultValue={getAppData("refundDaysCount")}
+                      required={getAppData("refundPolicy") === RefundPolicy.DAYS}
+                      value={getAppData("refundDaysCount") ?? ""}
+                      onChange={(e) => setAppData("refundDaysCount", parseInt(e.currentTarget.value))}
+                    />
+                    <Select
+                      options={options}
+                      isSearchable={false}
+                      isDisabled={disabled}
+                      onChange={(option) => setAppData("refundCountCalendarDays", option?.value === 1)}
+                      value={getSelectedOption()}
+                      defaultValue={getSelectedOption()}
+                    />
+                    <span className="me-2 ms-2">&nbsp;{t("before")}</span>
+                  </div>
+                </div>
+              </RadioGroup.Root>
+            </div>
+          )}
         </>
       )}
     </>
diff --git a/packages/app-store/stripepayment/zod.ts b/packages/app-store/stripepayment/zod.ts
index 579b81aa0c..4817fa0933 100644
--- a/packages/app-store/stripepayment/zod.ts
+++ b/packages/app-store/stripepayment/zod.ts
@@ -1,5 +1,7 @@
 import { z } from "zod";
 
+import { RefundPolicy } from "@calcom/lib/payment/types";
+
 import { eventTypeAppCardZod } from "../eventTypeAppCardZod";
 import { paymentOptions } from "./lib/constants";
 
@@ -18,6 +20,9 @@ export const appDataSchema = eventTypeAppCardZod.merge(
     currency: z.string(),
     paymentOption: paymentOptionEnum.optional(),
     enabled: z.boolean().optional(),
+    refundPolicy: z.nativeEnum(RefundPolicy).optional(),
+    refundDaysCount: z.number().optional(),
+    refundCountCalendarDays: z.boolean().optional(),
   })
 );
 
diff --git a/packages/features/bookings/Booker/components/BookEventForm/BookEventForm.tsx b/packages/features/bookings/Booker/components/BookEventForm/BookEventForm.tsx
index 7cc09ba5ca..fca672531d 100644
--- a/packages/features/bookings/Booker/components/BookEventForm/BookEventForm.tsx
+++ b/packages/features/bookings/Booker/components/BookEventForm/BookEventForm.tsx
@@ -7,7 +7,7 @@ import type { FieldError } from "react-hook-form";
 import { useIsPlatformBookerEmbed } from "@calcom/atoms/monorepo";
 import type { BookerEvent } from "@calcom/features/bookings/types";
 import { WEBSITE_PRIVACY_POLICY_URL, WEBSITE_TERMS_URL } from "@calcom/lib/constants";
-import getPaymentAppData from "@calcom/lib/getPaymentAppData";
+import { getPaymentAppData } from "@calcom/lib/getPaymentAppData";
 import { useLocale } from "@calcom/lib/hooks/useLocale";
 import { Alert, Button, EmptyScreen, Form } from "@calcom/ui";
 
diff --git a/packages/features/bookings/components/event-meta/Details.tsx b/packages/features/bookings/components/event-meta/Details.tsx
index a3d5eeed44..3a77bd292a 100644
--- a/packages/features/bookings/components/event-meta/Details.tsx
+++ b/packages/features/bookings/components/event-meta/Details.tsx
@@ -4,7 +4,7 @@ import { useBookerStore } from "@calcom/features/bookings/Booker/store";
 import { PriceIcon } from "@calcom/features/bookings/components/event-meta/PriceIcon";
 import type { BookerEvent } from "@calcom/features/bookings/types";
 import classNames from "@calcom/lib/classNames";
-import getPaymentAppData from "@calcom/lib/getPaymentAppData";
+import { getPaymentAppData } from "@calcom/lib/getPaymentAppData";
 import { useLocale } from "@calcom/lib/hooks/useLocale";
 import { Icon, type IconName } from "@calcom/ui";
 
diff --git a/packages/features/bookings/lib/handleCancelBooking.ts b/packages/features/bookings/lib/handleCancelBooking.ts
index 8fa9bab878..d603a476c1 100644
--- a/packages/features/bookings/lib/handleCancelBooking.ts
+++ b/packages/features/bookings/lib/handleCancelBooking.ts
@@ -20,6 +20,7 @@ import getOrgIdFromMemberOrTeamId from "@calcom/lib/getOrgIdFromMemberOrTeamId";
 import { getTeamIdFromEventType } from "@calcom/lib/getTeamIdFromEventType";
 import { HttpError } from "@calcom/lib/http-error";
 import logger from "@calcom/lib/logger";
+import { processPaymentRefund } from "@calcom/lib/payment/processPaymentRefund";
 import { safeStringify } from "@calcom/lib/safeStringify";
 import { getTranslation } from "@calcom/lib/server/i18n";
 import { WorkflowRepository } from "@calcom/lib/server/repository/workflow";
@@ -495,6 +496,13 @@ async function handler(req: CustomRequest) {
       },
     });
     updatedBookings.push(updatedBooking);
+
+    if (!!bookingToDelete.payment.length) {
+      await processPaymentRefund({
+        booking: bookingToDelete,
+        teamId,
+      });
+    }
   }
 
   /** TODO: Remove this without breaking functionality */
diff --git a/packages/features/bookings/lib/handleCancelBooking/test/webhook.test.ts b/packages/features/bookings/lib/handleCancelBooking/test/handleCancelBooking.test.ts
similarity index 50%
rename from packages/features/bookings/lib/handleCancelBooking/test/webhook.test.ts
rename to packages/features/bookings/lib/handleCancelBooking/test/handleCancelBooking.test.ts
index 88a87aa9cd..9905803430 100644
--- a/packages/features/bookings/lib/handleCancelBooking/test/webhook.test.ts
+++ b/packages/features/bookings/lib/handleCancelBooking/test/handleCancelBooking.test.ts
@@ -14,11 +14,16 @@ import { createMockNextJsRequest } from "@calcom/web/test/utils/bookingScenario/
 import { expectBookingCancelledWebhookToHaveBeenFired } from "@calcom/web/test/utils/bookingScenario/expects";
 import { setupAndTeardown } from "@calcom/web/test/utils/bookingScenario/setupAndTeardown";
 
-import { describe } from "vitest";
+import { describe, expect, vi } from "vitest";
 
+import { processPaymentRefund } from "@calcom/lib/payment/processPaymentRefund";
 import { BookingStatus } from "@calcom/prisma/enums";
 import { test } from "@calcom/web/test/fixtures/fixtures";
 
+vi.mock("@calcom/lib/payment/processPaymentRefund", () => ({
+  processPaymentRefund: vi.fn(),
+}));
+
 describe("Cancel Booking", () => {
   setupAndTeardown();
 
@@ -133,4 +138,136 @@ describe("Cancel Booking", () => {
       },
     });
   });
+
+  test("Should call processPaymentRefund", async () => {
+    const handleCancelBooking = (await import("@calcom/features/bookings/lib/handleCancelBooking")).default;
+
+    const booker = getBooker({
+      email: "booker@example.com",
+      name: "Booker",
+    });
+
+    const organizer = getOrganizer({
+      name: "Organizer",
+      email: "organizer@example.com",
+      id: 101,
+      schedules: [TestData.schedules.IstWorkHours],
+      credentials: [getGoogleCalendarCredential()],
+      selectedCalendars: [TestData.selectedCalendars.google],
+    });
+
+    const uidOfBookingToBeCancelled = "h5Wv3eHgconAED2j4gcVhP";
+    const idOfBookingToBeCancelled = 1020;
+    const { dateString: plus1DateString } = getDate({ dateIncrement: 1 });
+    const booking = {
+      id: idOfBookingToBeCancelled,
+      uid: uidOfBookingToBeCancelled,
+      eventTypeId: 1,
+      userId: 101,
+      responses: {
+        email: booker.email,
+        name: booker.name,
+        location: { optionValue: "", value: BookingLocations.CalVideo },
+      },
+      status: BookingStatus.ACCEPTED,
+      startTime: `${plus1DateString}T05:00:00.000Z`,
+      endTime: `${plus1DateString}T05:15:00.000Z`,
+      metadata: {
+        videoCallUrl: "https://existing-daily-video-call-url.example.com",
+      },
+      attendees: [
+        {
+          timeZone: "Asia/Kolkata",
+          email: booker.email,
+        },
+      ],
+    };
+
+    await createBookingScenario(
+      getScenarioData({
+        webhooks: [
+          {
+            userId: organizer.id,
+            eventTriggers: ["BOOKING_CANCELLED"],
+            subscriberUrl: "http://my-webhook.example.com",
+            active: true,
+            eventTypeId: 1,
+            appId: null,
+          },
+        ],
+        eventTypes: [
+          {
+            id: 1,
+            slotInterval: 30,
+            length: 30,
+            users: [
+              {
+                id: 101,
+              },
+            ],
+          },
+        ],
+        payment: [
+          {
+            amount: 12,
+            bookingId: idOfBookingToBeCancelled,
+            currency: "usd",
+            data: {},
+            externalId: "ext_id",
+            fee: 12,
+            refunded: false,
+            success: true,
+            uid: uidOfBookingToBeCancelled,
+          },
+        ],
+        bookings: [booking],
+        organizer,
+        apps: [TestData.apps["daily-video"]],
+      })
+    );
+    mockSuccessfulVideoMeetingCreation({
+      metadataLookupKey: "dailyvideo",
+      videoMeetingData: {
+        id: "MOCK_ID",
+        password: "MOCK_PASS",
+        url: `http://mock-dailyvideo.example.com/meeting-1`,
+      },
+    });
+
+    mockCalendarToHaveNoBusySlots("googlecalendar", {
+      create: {
+        id: "MOCKED_GOOGLE_CALENDAR_EVENT_ID",
+      },
+    });
+
+    const { req } = createMockNextJsRequest({
+      method: "POST",
+      body: {
+        id: idOfBookingToBeCancelled,
+        uid: uidOfBookingToBeCancelled,
+        cancelledBy: organizer.email,
+      },
+    });
+
+    await handleCancelBooking(req);
+
+    expectBookingCancelledWebhookToHaveBeenFired({
+      booker,
+      organizer,
+      location: BookingLocations.CalVideo,
+      subscriberUrl: "http://my-webhook.example.com",
+      payload: {
+        cancelledBy: organizer.email,
+        organizer: {
+          id: organizer.id,
+          username: organizer.username,
+          email: organizer.email,
+          name: organizer.name,
+          timeZone: organizer.timeZone,
+        },
+      },
+    });
+
+    expect(processPaymentRefund).toHaveBeenCalled();
+  });
 });
diff --git a/packages/features/bookings/lib/handleNewBooking.ts b/packages/features/bookings/lib/handleNewBooking.ts
index b87dac07fe..20b16dfa31 100644
--- a/packages/features/bookings/lib/handleNewBooking.ts
+++ b/packages/features/bookings/lib/handleNewBooking.ts
@@ -55,7 +55,7 @@ import { getErrorFromUnknown } from "@calcom/lib/errors";
 import { extractBaseEmail } from "@calcom/lib/extract-base-email";
 import { getBookerBaseUrl } from "@calcom/lib/getBookerUrl/server";
 import getOrgIdFromMemberOrTeamId from "@calcom/lib/getOrgIdFromMemberOrTeamId";
-import getPaymentAppData from "@calcom/lib/getPaymentAppData";
+import { getPaymentAppData } from "@calcom/lib/getPaymentAppData";
 import { getTeamIdFromEventType } from "@calcom/lib/getTeamIdFromEventType";
 import { HttpError } from "@calcom/lib/http-error";
 import logger from "@calcom/lib/logger";
diff --git a/packages/features/ee/payments/components/PaymentPage.tsx b/packages/features/ee/payments/components/PaymentPage.tsx
index 136d7fdf58..d14c0471a8 100644
--- a/packages/features/ee/payments/components/PaymentPage.tsx
+++ b/packages/features/ee/payments/components/PaymentPage.tsx
@@ -12,7 +12,7 @@ import { sdkActionManager, useIsEmbed } from "@calcom/embed-core/embed-iframe";
 import { PayIcon } from "@calcom/features/bookings/components/event-meta/PayIcon";
 import { Price } from "@calcom/features/bookings/components/event-meta/Price";
 import { APP_NAME, WEBSITE_URL, CURRENT_TIMEZONE } from "@calcom/lib/constants";
-import getPaymentAppData from "@calcom/lib/getPaymentAppData";
+import { getPaymentAppData } from "@calcom/lib/getPaymentAppData";
 import { useLocale } from "@calcom/lib/hooks/useLocale";
 import useTheme from "@calcom/lib/hooks/useTheme";
 import { getIs24hClockFromLocalStorage, isBrowserLocale24h } from "@calcom/lib/timeFormat";
diff --git a/packages/features/eventtypes/components/EventTypeDescription.tsx b/packages/features/eventtypes/components/EventTypeDescription.tsx
index bae4378a2a..810ee4c1c1 100644
--- a/packages/features/eventtypes/components/EventTypeDescription.tsx
+++ b/packages/features/eventtypes/components/EventTypeDescription.tsx
@@ -5,7 +5,7 @@ import type { z } from "zod";
 import { Price } from "@calcom/features/bookings/components/event-meta/Price";
 import { PriceIcon } from "@calcom/features/bookings/components/event-meta/PriceIcon";
 import { classNames, parseRecurringEvent } from "@calcom/lib";
-import getPaymentAppData from "@calcom/lib/getPaymentAppData";
+import { getPaymentAppData } from "@calcom/lib/getPaymentAppData";
 import { useLocale } from "@calcom/lib/hooks/useLocale";
 import { markdownToSafeHTML } from "@calcom/lib/markdownToSafeHTML";
 import type { baseEventTypeSelect } from "@calcom/prisma";
diff --git a/packages/features/eventtypes/components/tabs/instant/EventInstantTab.tsx b/packages/features/eventtypes/components/tabs/instant/EventInstantTab.tsx
index b4b69d6ea2..b3938b4c13 100644
--- a/packages/features/eventtypes/components/tabs/instant/EventInstantTab.tsx
+++ b/packages/features/eventtypes/components/tabs/instant/EventInstantTab.tsx
@@ -1,5 +1,5 @@
 import type { EventTypeSetupProps } from "@calcom/features/eventtypes/lib/types";
-import getPaymentAppData from "@calcom/lib/getPaymentAppData";
+import { getPaymentAppData } from "@calcom/lib/getPaymentAppData";
 import { eventTypeMetaDataSchemaWithTypedApps } from "@calcom/prisma/zod-utils";
 
 import InstantEventController from "./InstantEventController";
diff --git a/packages/features/eventtypes/components/tabs/recurring/EventRecurringTab.tsx b/packages/features/eventtypes/components/tabs/recurring/EventRecurringTab.tsx
index 8349487b6e..630d7a3e4b 100644
--- a/packages/features/eventtypes/components/tabs/recurring/EventRecurringTab.tsx
+++ b/packages/features/eventtypes/components/tabs/recurring/EventRecurringTab.tsx
@@ -1,4 +1,4 @@
-import getPaymentAppData from "@calcom/lib/getPaymentAppData";
+import { getPaymentAppData } from "@calcom/lib/getPaymentAppData";
 import { eventTypeMetaDataSchemaWithTypedApps } from "@calcom/prisma/zod-utils";
 
 import type { RecurringEventControllerProps } from "./RecurringEventController";
diff --git a/packages/lib/getPaymentAppData.ts b/packages/lib/getPaymentAppData.ts
index 2b0fe867a6..113605b82c 100644
--- a/packages/lib/getPaymentAppData.ts
+++ b/packages/lib/getPaymentAppData.ts
@@ -8,7 +8,7 @@ import type { BookerEvent } from "@calcom/features/bookings/types";
 import type { EventTypeMetaDataSchema } from "@calcom/prisma/zod-utils";
 import { eventTypeMetaDataSchemaWithTypedApps } from "@calcom/prisma/zod-utils";
 
-export default function getPaymentAppData(
+export function getPaymentAppData(
   _eventType: Pick<BookerEvent, "price" | "currency"> & {
     metadata: z.infer<typeof EventTypeMetaDataSchema>;
   },
@@ -38,6 +38,9 @@ export default function getPaymentAppData(
     appId: EventTypeAppsList | null;
     paymentOption: typeof paymentOptionEnum;
     credentialId?: number;
+    refundPolicy?: string;
+    refundDaysCount?: number;
+    refundCountCalendarDays?: boolean;
   } | null = null;
   for (const appId of paymentAppIds) {
     const appData = getEventTypeAppData(eventType, appId, forcedGet);
@@ -58,6 +61,9 @@ export default function getPaymentAppData(
       appId: null,
       paymentOption: "ON_BOOKING",
       credentialId: undefined,
+      refundPolicy: undefined,
+      refundDaysCount: undefined,
+      refundCountCalendarDays: undefined,
     }
   );
 }
diff --git a/packages/lib/payment/handlePaymentRefund.ts b/packages/lib/payment/handlePaymentRefund.ts
new file mode 100644
index 0000000000..a51a12423e
--- /dev/null
+++ b/packages/lib/payment/handlePaymentRefund.ts
@@ -0,0 +1,32 @@
+import type { Payment, Prisma } from "@prisma/client";
+
+import appStore from "@calcom/app-store";
+import type { AppCategories } from "@calcom/prisma/enums";
+import type { IAbstractPaymentService, PaymentApp } from "@calcom/types/PaymentService";
+
+const handlePaymentRefund = async (
+  paymentId: Payment["id"],
+  paymentAppCredentials: {
+    key: Prisma.JsonValue;
+    appId: string | null;
+    app: {
+      dirName: string;
+      categories: AppCategories[];
+    } | null;
+  }
+) => {
+  const paymentApp = (await appStore[
+    paymentAppCredentials?.app?.dirName as keyof typeof appStore
+  ]?.()) as PaymentApp;
+  if (!paymentApp?.lib?.PaymentService) {
+    console.warn(`payment App service of type ${paymentApp} is not implemented`);
+    return false;
+  }
+  // eslint-disable-next-line @typescript-eslint/no-explicit-any
+  const PaymentService = paymentApp.lib.PaymentService as any;
+  const paymentInstance = new PaymentService(paymentAppCredentials) as IAbstractPaymentService;
+  const refund = await paymentInstance.refund(paymentId);
+  return refund;
+};
+
+export { handlePaymentRefund };
diff --git a/packages/lib/payment/processPaymentRefund.test.ts b/packages/lib/payment/processPaymentRefund.test.ts
new file mode 100644
index 0000000000..1af040cc82
--- /dev/null
+++ b/packages/lib/payment/processPaymentRefund.test.ts
@@ -0,0 +1,151 @@
+import { describe, it, expect, vi, beforeEach } from "vitest";
+
+import dayjs from "@calcom/dayjs";
+import prismaMock from "../../../tests/libs/__mocks__/prismaMock";
+
+import { getPaymentAppData } from "../getPaymentAppData";
+import { handlePaymentRefund } from "./handlePaymentRefund";
+import { processPaymentRefund } from "./processPaymentRefund";
+import { RefundPolicy } from "./types";
+
+vi.mock('@calcom/lib/getPaymentAppData', () => ({
+  getPaymentAppData: vi.fn(),
+}));
+
+vi.mock("@calcom/lib/payment/handlePaymentRefund", () => ({
+  handlePaymentRefund: vi.fn(),
+}));
+
+describe("processPaymentRefund", () => {
+  const mockStartTime = new Date("2025-01-01T10:00:00Z");
+
+  const mockPayment = [
+    {
+      id: 1,
+      uid: "unique-id-1",
+      appId: "123", 
+      bookingId: 456,
+      amount: 1000,
+      fee: 50,
+      currency: "USD",
+      success: true,
+      refunded: false,
+      data: {},
+      externalId: "ext-1234",
+      paymentOption: null,
+    },
+  ];
+
+  const mockBooking = {
+    startTime: mockStartTime,
+    endTime: new Date("2025-01-01T11:00:00Z"),
+    payment: mockPayment,
+    eventType: {
+      owner: { id: 1 },
+      metadata: {},
+    },
+  };
+
+  const mockAppData = {
+    refundPolicy: RefundPolicy.DAYS,
+    refundCountCalendarDays: false,
+    refundDaysCount: 3,
+  };
+
+  const mockPaymentAppCredentials = [
+    {
+      key: "key1",
+      appId: "123",
+      app: {
+        categories: ["category1"],
+        dirName: "app1",
+      },
+    },
+  ];
+
+  beforeEach(() => {
+    vi.clearAllMocks();
+  });
+
+  it("should not process refund if no teamId or eventType owner", async () => {
+    await processPaymentRefund({ booking: mockBooking, teamId: null });
+    expect(handlePaymentRefund).not.toHaveBeenCalled();
+  });
+
+  it("should not process refund if no successful payment found", async () => {
+    const invalidBooking = { ...mockBooking, payment: [{ ...mockPayment[0], success: false }] };
+    await processPaymentRefund({ booking: invalidBooking, teamId: 1 });
+    expect(handlePaymentRefund).not.toHaveBeenCalled();
+  });
+
+  it("should not process refund if refund policy is NEVER", async () => {
+    (getPaymentAppData as any).mockReturnValueOnce({ ...mockAppData, refundPolicy: RefundPolicy.NEVER });
+    await processPaymentRefund({ booking: mockBooking, teamId: 1 });
+    expect(handlePaymentRefund).not.toHaveBeenCalled();
+  });
+
+  it("should process refund if refund policy is DAYS and within refund window", async () => {
+    (getPaymentAppData as any).mockReturnValueOnce(mockAppData);
+    prismaMock.credential.findMany.mockResolvedValueOnce(mockPaymentAppCredentials);
+
+    const mockNow = dayjs(mockStartTime).subtract(8, "days").toDate();
+    vi.useFakeTimers();
+    vi.setSystemTime(mockNow);
+
+    await processPaymentRefund({ booking: mockBooking, teamId: 1 });
+
+    expect(handlePaymentRefund).toHaveBeenCalledWith(1, mockPaymentAppCredentials[0]);
+  });
+
+  it("should not process refund if past the refund deadline", async () => {
+    (getPaymentAppData as any).mockReturnValueOnce(mockAppData);
+    prismaMock.credential.findMany.mockResolvedValueOnce(mockPaymentAppCredentials);
+
+    const mockNow = dayjs(mockStartTime).subtract(2, "days").toDate();
+
+    vi.useFakeTimers();
+    vi.setSystemTime(mockNow);
+
+    await processPaymentRefund({ booking: mockBooking, teamId: 1 });
+
+    expect(handlePaymentRefund).not.toHaveBeenCalled();
+  });
+
+  it("should process refund if business days are considered and before deadline", async () => {
+    (getPaymentAppData as any).mockReturnValueOnce({ ...mockAppData, refundCountCalendarDays: false });
+    prismaMock.credential.findMany.mockResolvedValueOnce(mockPaymentAppCredentials);
+
+    // eslint-disable-next-line @typescript-eslint/ban-ts-comment
+    //@ts-ignore
+    const mockNow = dayjs(mockStartTime).businessDaysSubtract(3).toDate();
+
+    vi.useFakeTimers();
+    vi.setSystemTime(mockNow);
+
+    await processPaymentRefund({ booking: mockBooking, teamId: 1 });
+
+    expect(handlePaymentRefund).toHaveBeenCalledWith(1, mockPaymentAppCredentials[0]);
+  });
+
+  it("should not process refund if business days are considered and after deadline", async () => {
+    (getPaymentAppData as any).mockReturnValueOnce({ ...mockAppData, refundCountCalendarDays: false });
+    prismaMock.credential.findMany.mockResolvedValueOnce(mockPaymentAppCredentials);
+
+    const mockNow = dayjs(mockStartTime).subtract(3, "days").toDate();
+
+    vi.useFakeTimers();
+    vi.setSystemTime(mockNow);
+
+    await processPaymentRefund({ booking: mockBooking, teamId: 1 });
+
+    expect(handlePaymentRefund).not.toHaveBeenCalled();
+  });
+
+  it("should not process refund if paymentAppCredential is not found", async () => {
+    (getPaymentAppData as any).mockReturnValueOnce(mockAppData);
+    prismaMock.credential.findMany.mockResolvedValueOnce([]);
+
+    await processPaymentRefund({ booking: mockBooking, teamId: 1 });
+    expect(handlePaymentRefund).not.toHaveBeenCalled();
+  });
+});
diff --git a/packages/lib/payment/processPaymentRefund.ts b/packages/lib/payment/processPaymentRefund.ts
new file mode 100644
index 0000000000..68d9cd9e93
--- /dev/null
+++ b/packages/lib/payment/processPaymentRefund.ts
@@ -0,0 +1,86 @@
+import type { Payment, Prisma } from "@prisma/client";
+
+import dayjs from "@calcom/dayjs";
+import prisma from "@calcom/prisma";
+import { EventTypeMetaDataSchema } from "@calcom/prisma/zod-utils";
+
+import { getPaymentAppData } from "../getPaymentAppData";
+import { handlePaymentRefund } from "./handlePaymentRefund";
+import { RefundPolicy } from "./types";
+
+export const processPaymentRefund = async ({
+  booking,
+  teamId,
+}: {
+  booking: {
+    startTime: Date;
+    endTime: Date;
+    payment: Payment[];
+    eventType: {
+      owner?: {
+        id: number;
+      } | null;
+      metadata?: Prisma.JsonValue;
+    } | null;
+  };
+  teamId?: number | null;
+}) => {
+  const { startTime, eventType, payment } = booking;
+  if (!teamId && !eventType?.owner) return;
+
+  const successPayment = payment.find((p) => p.success);
+  if (!successPayment) return;
+
+  const eventTypeMetadata = EventTypeMetaDataSchema.parse(eventType?.metadata);
+  const appData = getPaymentAppData({
+    currency: successPayment.currency,
+    metadata: eventTypeMetadata,
+    price: successPayment.amount,
+  });
+
+  if (!appData?.refundPolicy || appData.refundPolicy === RefundPolicy.NEVER) return;
+
+  const credentialWhereClause: Prisma.CredentialFindManyArgs["where"] = {
+    appId: successPayment.appId,
+  };
+  if (eventType?.owner) {
+    credentialWhereClause.userId = eventType.owner.id;
+  } else if (teamId) {
+    credentialWhereClause.teamId = teamId;
+  }
+
+  const paymentAppCredentials = await prisma.credential.findMany({
+    where: credentialWhereClause,
+    select: {
+      key: true,
+      appId: true,
+      app: {
+        select: {
+          categories: true,
+          dirName: true,
+        },
+      },
+    },
+  });
+
+  const paymentAppCredential = paymentAppCredentials.find((credential) => {
+    return credential.appId === successPayment.appId;
+  });
+
+  if (!paymentAppCredential) return;
+
+  const { refundPolicy, refundCountCalendarDays, refundDaysCount } = appData;
+
+  //refundDaysCount would always be present in case DAYS is selected, but adding it in AND jut for type safety
+  if (refundPolicy === RefundPolicy.DAYS && refundDaysCount) {
+    const refundDeadline =
+      refundCountCalendarDays === true
+        ? dayjs(startTime).subtract(refundDaysCount, "days")
+        : // businessDaysSubtract exists on extended dayjs instance, but ts is messing up
+          // eslint-disable-next-line @typescript-eslint/ban-ts-comment
+          //@ts-ignore
+          dayjs(startTime).businessDaysSubtract(refundDaysCount);
+    if (dayjs().isAfter(refundDeadline)) return;
+  }
+  await handlePaymentRefund(successPayment.id, paymentAppCredential);
+};
diff --git a/packages/lib/payment/types.ts b/packages/lib/payment/types.ts
new file mode 100644
index 0000000000..0810b83701
--- /dev/null
+++ b/packages/lib/payment/types.ts
@@ -0,0 +1,5 @@
+export enum RefundPolicy {
+  NEVER = "never",
+  ALWAYS = "always",
+  DAYS = "days",
+}
diff --git a/packages/platform/atoms/event-types/hooks/usePlatformTabsNavigations.tsx b/packages/platform/atoms/event-types/hooks/usePlatformTabsNavigations.tsx
index c9420ec66c..95d188a3e4 100644
--- a/packages/platform/atoms/event-types/hooks/usePlatformTabsNavigations.tsx
+++ b/packages/platform/atoms/event-types/hooks/usePlatformTabsNavigations.tsx
@@ -8,7 +8,7 @@ import type { UseFormReturn } from "react-hook-form";
 
 import useLockedFieldsManager from "@calcom/features/ee/managed-event-types/hooks/useLockedFieldsManager";
 import type { EventTypeSetupProps, FormValues } from "@calcom/features/eventtypes/lib/types";
-import getPaymentAppData from "@calcom/lib/getPaymentAppData";
+import { getPaymentAppData } from "@calcom/lib/getPaymentAppData";
 import { useLocale } from "@calcom/lib/hooks/useLocale";
 import type { VerticalTabItemProps } from "@calcom/ui";
 
diff --git a/packages/platform/atoms/event-types/hooks/useTabsNavigations.tsx b/packages/platform/atoms/event-types/hooks/useTabsNavigations.tsx
index a5303b21cf..3493de0507 100644
--- a/packages/platform/atoms/event-types/hooks/useTabsNavigations.tsx
+++ b/packages/platform/atoms/event-types/hooks/useTabsNavigations.tsx
@@ -13,7 +13,7 @@ import type {
   FormValues,
   EventTypeApps,
 } from "@calcom/features/eventtypes/lib/types";
-import getPaymentAppData from "@calcom/lib/getPaymentAppData";
+import { getPaymentAppData } from "@calcom/lib/getPaymentAppData";
 import { useLocale } from "@calcom/lib/hooks/useLocale";
 import { eventTypeMetaDataSchemaWithTypedApps } from "@calcom/prisma/zod-utils";
 import type { VerticalTabItemProps } from "@calcom/ui";
diff --git a/packages/platform/atoms/event-types/payments/PaymentForm.tsx b/packages/platform/atoms/event-types/payments/PaymentForm.tsx
index bb3f8411c6..19fba5237e 100644
--- a/packages/platform/atoms/event-types/payments/PaymentForm.tsx
+++ b/packages/platform/atoms/event-types/payments/PaymentForm.tsx
@@ -6,7 +6,7 @@ import { PayIcon } from "@calcom/features/bookings/components/event-meta/PayIcon
 import { Price } from "@calcom/features/bookings/components/event-meta/Price";
 import type { PaymentPageProps } from "@calcom/features/ee/payments/pages/payment";
 import { APP_NAME, WEBSITE_URL, CURRENT_TIMEZONE } from "@calcom/lib/constants";
-import getPaymentAppData from "@calcom/lib/getPaymentAppData";
+import { getPaymentAppData } from "@calcom/lib/getPaymentAppData";
 import { useLocale } from "@calcom/lib/hooks/useLocale";
 import { isBrowserLocale24h } from "@calcom/lib/timeFormat";
 import { localStorage } from "@calcom/lib/webstorage";
diff --git a/packages/trpc/server/routers/viewer/bookings/confirm.handler.ts b/packages/trpc/server/routers/viewer/bookings/confirm.handler.ts
index 0915212133..faaa5b91fc 100644
--- a/packages/trpc/server/routers/viewer/bookings/confirm.handler.ts
+++ b/packages/trpc/server/routers/viewer/bookings/confirm.handler.ts
@@ -1,6 +1,5 @@
 import { Prisma } from "@prisma/client";
 
-import appStore from "@calcom/app-store";
 import type { LocationObject } from "@calcom/app-store/locations";
 import { getLocationValueForDB } from "@calcom/app-store/locations";
 import { sendDeclinedEmailsAndSMS } from "@calcom/emails";
@@ -14,6 +13,7 @@ import { isPrismaObjOrUndefined, parseRecurringEvent } from "@calcom/lib";
 import { getBookerBaseUrl } from "@calcom/lib/getBookerUrl/server";
 import getOrgIdFromMemberOrTeamId from "@calcom/lib/getOrgIdFromMemberOrTeamId";
 import { getTeamIdFromEventType } from "@calcom/lib/getTeamIdFromEventType";
+import { processPaymentRefund } from "@calcom/lib/payment/processPaymentRefund";
 import { getTranslation } from "@calcom/lib/server";
 import { getUsersCredentials } from "@calcom/lib/server/getUsersCredentials";
 import { getTimeFormatStringFromUserTimeFormat } from "@calcom/lib/timeFormat";
@@ -26,7 +26,6 @@ import {
 } from "@calcom/prisma/enums";
 import type { EventTypeMetadata } from "@calcom/prisma/zod-utils";
 import type { CalendarEvent } from "@calcom/types/Calendar";
-import type { IAbstractPaymentService, PaymentApp } from "@calcom/types/PaymentService";
 
 import { TRPCError } from "@trpc/server";
 
@@ -299,72 +298,10 @@ export const confirmHandler = async ({ ctx, input }: ConfirmOptions) => {
     } else {
       // handle refunds
       if (!!booking.payment.length) {
-        const successPayment = booking.payment.find((payment) => payment.success);
-        if (!successPayment) {
-          // Disable paymentLink for this booking
-        } else {
-          let eventTypeOwnerId;
-          if (booking.eventType?.owner) {
-            eventTypeOwnerId = booking.eventType.owner.id;
-          } else if (booking.eventType?.teamId) {
-            const teamOwner = await prisma.membership.findFirst({
-              where: {
-                teamId: booking.eventType.teamId,
-                role: MembershipRole.OWNER,
-              },
-              select: {
-                userId: true,
-              },
-            });
-            eventTypeOwnerId = teamOwner?.userId;
-          }
-
-          if (!eventTypeOwnerId) {
-            throw new Error("Event Type owner not found for obtaining payment app credentials");
-          }
-
-          const paymentAppCredentials = await prisma.credential.findMany({
-            where: {
-              userId: eventTypeOwnerId,
-              appId: successPayment.appId,
-            },
-            select: {
-              key: true,
-              appId: true,
-              app: {
-                select: {
-                  categories: true,
-                  dirName: true,
-                },
-              },
-            },
-          });
-
-          const paymentAppCredential = paymentAppCredentials.find((credential) => {
-            return credential.appId === successPayment.appId;
-          });
-
-          if (!paymentAppCredential) {
-            throw new Error("Payment app credentials not found");
-          }
-
-          // Posible to refactor TODO:
-          const paymentApp = (await appStore[
-            paymentAppCredential?.app?.dirName as keyof typeof appStore
-          ]?.()) as PaymentApp;
-          if (!paymentApp?.lib?.PaymentService) {
-            console.warn(`payment App service of type ${paymentApp} is not implemented`);
-            return null;
-          }
-
-          // eslint-disable-next-line @typescript-eslint/no-explicit-any
-          const PaymentService = paymentApp.lib.PaymentService as any;
-          const paymentInstance = new PaymentService(paymentAppCredential) as IAbstractPaymentService;
-          const paymentData = await paymentInstance.refund(successPayment.id);
-          if (!paymentData.refunded) {
-            throw new Error("Payment could not be refunded");
-          }
-        }
+        await processPaymentRefund({
+          booking: booking,
+          teamId: booking.eventType?.teamId,
+        });
       }
       // end handle refunds.