Don't offer a refund. If they have been a good client overall, offer them an alternative. A concession of some sort. Perhaps a discount for next couple of payme

Don't offer a refund. If they have been a good client overall, offer them an alternative. A concession of some sort. Perhaps a discount for next couple of payments (if subscription based). Work something out where you don't lose money from your past but you may have to give up something in the future. The reason is that you already have worked hard in the past to get that money. A concession in future will first put the responsibility back on client and you have the freedom to say "we can give you a concession but we may reduce some of the features/support etc". I would reply with something like: "Unfortunately a refund would not be fair to our team based on the work we have done so far for you. However, you are an excellent client and we would love to give you some type of concession for future and we can offer you xyz. I hope this helps you. Let me know if you have any questions on this concession offer" Use words where you make the client feel guilty about asking for refund (because frankly, they shouldn't). However, you still sound like you are trying to help them. Win-Win.