Am I required to give a cash refund versus in-store credit for a prepaid service contract? -

This is for a dog training small business in Washington State.The customer is requesting a cash refund be offered for a prepayment of a 6-week training arrangement. The initial eval and planning phase were complete before she called to cancel. Our stance on this is that we accepted her payment as an agreement to the 6-weeks. We do not want to issue a cash refund, but rather the abilty for her to retain a company credit towards services equal to the amount remaining from her payment.

Do you have a written store policy? I would recommend you just pro-rate her refund--either in cash or store credit.