When a waitlist booking is made with a drop-in and the client is not added to the class or if a staff member removes the client from the waitlist and does not add the client to the class, the system will refund the client back to the client's original payment method.
If a client purchased the drop-in with a credit card, then the card used to purchase the drop-in will be refunded. The setting chosen under Class Cancelation Refund Policy does not apply to waitlist bookings and currently there is not a setting that regulates how a client is refunded when they are removed from the waitlist.
Drop-ins that were purchased with a credit card to secure a waitlist spot, but were later removed from the waitlist and did not make it to the class, will not display under the Client Bookings tab as a canceled waitlist booking. You will be able to see the refunded drop-in booking under the client's Transaction tab.
We suggest enabling both the "Added to Waitlist" and "Removed from Waitlist" transactional notifications so you can easily track client waitlist activity.