Yes, you can say “no refunds” on digital downloads—but the words alone are not enough. In the US, no federal law makes you give refunds, so a clear refund policy for digital products is usually fine. In the EU and the UK, buyers have 14 days to cancel. They lose that right on a download only if they agreed at checkout that the download starts right away and that they give up the right to cancel. And everywhere, a file that is broken or not as described still needs a fix or a refund.
Why do digital products need their own refund policy?
A buyer can’t send a download back. Once they have the file, they keep it. That is why most sellers make digital sales final.
But “final” only works when the buyer knew it before they paid. If the policy is hidden, buyers feel tricked. Then they ask their bank to reverse the payment—and that costs you more than a refund would.
Can you legally have a no refund policy for digital products?
It depends on where your buyer lives.
US buyers. No federal law makes online sellers accept returns. Your policy is the rule. Some states have rules about how clearly a store must show its refund policy, so put it where buyers see it before they pay.
EU buyers. Buyers have 14 days to cancel most online purchases. For digital content, that right ends once the download starts—but only if all three of these happened:
- The buyer agreed that the download starts right away.
- The buyer said they know they lose the right to cancel.
- You sent them a confirmation that shows this, for example in the order email.
Do you also sell physical items to EU buyers? Then you need an online cancel button too. Here is what the EU withdrawal button needs.
UK buyers. The rule is almost the same. The buyer must agree before the download starts and say they know they lose the right to cancel.
If you skip the checkbox, an EU or UK buyer may still cancel within 14 days—even after they downloaded the file.
What should a digital product refund policy say?
Keep it short. Cover these five things:
- The rule. Digital sales are final once the file is downloaded.
- Why. Files can’t be returned.
- The exception. If the file is broken, won’t open, or is not as described, you send a fixed file or a full refund.
- The deadline. How many days the buyer has to tell you about a problem, for example 7 days.
- How to reach you. Email or a contact form, and how fast you reply.
Here is example wording you can use:
“Because digital files can be downloaded right away, all digital sales are final once the file has been accessed or downloaded. At checkout, you agree that your download starts right away and that you lose your right to cancel once it starts. If your file is broken, has a technical error, or is not as described, contact us within [7] days and we will send a corrected file or a full refund.”
What does the checkout checkbox need to say?
For EU and UK buyers, add a checkbox the buyer must tick before paying. It must not be ticked already. For example:
“I agree my download starts right away, and I lose my right to cancel once it starts.”
Then repeat it in the order email. That email is your proof.
Do you have to refund a file that does not work?
Yes. A “no refunds” policy never covers a broken file. In the EU and the UK, the law says digital content must work and match its description. If it doesn’t, the buyer can ask for a fix or their money back. In the US, a refund on a broken file is also the fastest way to stop a bank dispute.
Fix it fast. Most problems are simple: the wrong file, a file that won’t open on a phone, or a missing page.
How do you stop people from abusing your refund policy?
Some buyers download the file and then ask for their money back. You can’t stop all of it, but you can make it rare:
- Show what is inside. Put page previews and a full list of files on the product page.
- Name the software buyers need. “Needs a free Canva account” stops many refund requests before they happen.
- Deliver right away, and send the download link by email too.
- Answer fast and kindly. A buyer who gets help rarely asks for a refund.
Frequently asked questions
Does Etsy allow refunds on digital products?
Etsy lets you set your own policy for digital items, and most sellers don’t accept returns on downloads. On your own website, you write the policy yourself—and in the EU and the UK you also need the checkout checkbox. Selling on Etsy too? The Etsy Return Policy Template walks you through Etsy’s settings.
Can a buyer still dispute the payment with their bank?
Yes. A clear policy, a ticked checkbox and a delivery record help you win the dispute. They don’t stop the buyer from opening one.
Is “all sales final” enough on its own?
For US buyers, it is usually enough if they see it before they pay. For EU and UK buyers, you also need the checkbox and the confirmation email.
Get the full policy in one template
I made a return and refund policy template for small online shops. It has the digital products section above, notes for EU, UK and US buyers, and blanks you fill in. It takes about 20 minutes, and then you paste it onto your own website.
A clear policy is one of the things buyers check before they pay. To find what else stops them, try Make Your Website Sell.
This post is general information, not legal advice.