In order for a reservation to be eligible for a refund, customer's credit card must be accepted by the system and the reservation must be in accordance with the cancellation fee hours and group size previously set in Admin Panel -> Reservations -> Deposits and Fees.
Please follow these steps in case the host does not want to charge cancellation fee to a customer at the moment of cancelling the reservation.
Make sure that the reservation is showing Card on file and click on the Three dot button next to Edit button. Press Cancel in the dropdown menu.
Enable the "Do Not Charge Fee" toggle and press Confirm: