When you are answering the Terms of Service questionnaire, you will be asked if the customer will receive a refund if you cancel their purchase A refund is repayment to a customer of the money that they paid you for your goods, services, or digital products. Please note that this question applies only to situations in which you cancel the purchase of your own volition (e.g. you run out of the materials to make the goods or are ill and cannot perform the service purchased), and not if the customer request a refund themselves.
You should select "yes" to this question if you will issue your customers a refund if you cancel the customer's purchase. You should select "no" to this question if you will keep your customer's payment for the goods, services, and/or digital products if you cancel the customer's purchase.