I happily offer complete refunds right up to the day of a booking. Yesterday a guest cancelled and Airbnb sent me message that only part of it was being refunded . I had to click something if I wanted to offer full refund. Then it asked me how much I wanted to refund beyond the partial amount Airbnb had indicated. Why doesn't Airbnb give back whole amount at time of cancellation as my site indicates will happen?
According to your listings cancellation policy a full refund will be provided if reservation is cancelled before 12:00 PM of the day previous to the day of check-in. if cancelled after 12:00 PM of that day one night is charged to the guest. (12:00 PM is your earliest check-in time on the check-in day)