Skip payment process if item is free to borrow

backend/tests/unit/services/refundService.test.js

@@ -295,6 +295,17 @@ describe('RefundService', () => {
           cancelledBy: null
         });
       });
+
+      it('should allow cancellation for free rental with not_required payment status', () => {
+        const rental = { ...baseRental, paymentStatus: 'not_required' };
+        const result = RefundService.validateCancellationEligibility(rental, 100);
+
+        expect(result).toEqual({
+          canCancel: true,
+          reason: 'Cancellation allowed',
+          cancelledBy: 'renter'
+        });
+      });
     });
 
     describe('Edge cases', () => {