Staying in Good Standing while handling refunds when patron's cancel outside your policy.

[Cassie56]

I have had 2 patrons now that have cancelled on the day of their stay and want a full refund. I have a very flexible policy, I allow full refund up to the day before, but I still feel bad and don't want them to be mad at me for not giving a full refund. How do I handle these people and still remain 5 stars.