refund and delayed charge

2025-09-04 16:44:47 -04:00
parent b59fc07fc3
commit b22e4fa910
19 changed files with 1255 additions and 594 deletions
--- a/backend/jobs/payoutProcessor.js
+++ b/backend/jobs/payoutProcessor.js
@@ -1,7 +1,7 @@
 const cron = require("node-cron");
 const PayoutService = require("../services/payoutService");

-const paymentsSchedule = "31 * * * *"; // Run every hour at minute 0
+const paymentsSchedule = "0 * * * *"; // Run every hour at minute 0
 const retrySchedule = "0 7 * * *"; // Retry failed payouts once daily at 7 AM

 class PayoutProcessor {
--- a/backend/models/Rental.js
+++ b/backend/models/Rental.js
@@ -43,18 +43,10 @@ const Rental = sequelize.define("Rental", {
    type: DataTypes.DECIMAL(10, 2),
    allowNull: false,
  },
-  baseRentalAmount: {
-    type: DataTypes.DECIMAL(10, 2),
-    allowNull: false,
-  },
  platformFee: {
    type: DataTypes.DECIMAL(10, 2),
    allowNull: false,
  },
-  processingFee: {
-    type: DataTypes.DECIMAL(10, 2),
-    allowNull: false,
-  },
  payoutAmount: {
    type: DataTypes.DECIMAL(10, 2),
    allowNull: false,
@@ -83,6 +75,28 @@ const Rental = sequelize.define("Rental", {
  stripeTransferId: {
    type: DataTypes.STRING,
  },
+  // Refund tracking fields
+  refundAmount: {
+    type: DataTypes.DECIMAL(10, 2),
+  },
+  refundProcessedAt: {
+    type: DataTypes.DATE,
+  },
+  refundReason: {
+    type: DataTypes.TEXT,
+  },
+  stripeRefundId: {
+    type: DataTypes.STRING,
+  },
+  cancelledBy: {
+    type: DataTypes.ENUM("renter", "owner"),
+  },
+  cancelledAt: {
+    type: DataTypes.DATE,
+  },
+  stripePaymentMethodId: {
+    type: DataTypes.STRING,
+  },
  deliveryMethod: {
    type: DataTypes.ENUM("pickup", "delivery"),
    defaultValue: "pickup",
--- a/backend/models/User.js
+++ b/backend/models/User.js
@@ -102,6 +102,10 @@ const User = sequelize.define('User', {
  stripeConnectedAccountId: {
    type: DataTypes.STRING,
    allowNull: true
+  },
+  stripeCustomerId: {
+    type: DataTypes.STRING,
+    allowNull: true
  }
 }, {
  hooks: {
--- a/backend/routes/rentals.js
+++ b/backend/routes/rentals.js
@@ -3,6 +3,7 @@ const { Op } = require("sequelize");
 const { Rental, Item, User } = require("../models"); // Import from models/index.js to get models with associations
 const { authenticateToken } = require("../middleware/auth");
 const FeeCalculator = require("../utils/feeCalculator");
+const RefundService = require("../services/refundService");
 const router = express.Router();

 // Helper function to check and update review visibility
@@ -103,7 +104,7 @@ router.post("/", authenticateToken, async (req, res) => {
      deliveryMethod,
      deliveryAddress,
      notes,
-      paymentStatus,
+      stripePaymentMethodId,
    } = req.body;

    const item = await Item.findByPk(itemId);
@@ -115,7 +116,7 @@ router.post("/", authenticateToken, async (req, res) => {
      return res.status(400).json({ error: "Item is not available" });
    }

-    let rentalStartDateTime, rentalEndDateTime, baseRentalAmount;
+    let rentalStartDateTime, rentalEndDateTime, totalAmount;

    // New UTC datetime format
    rentalStartDateTime = new Date(startDateTime);
@@ -128,11 +129,11 @@ router.post("/", authenticateToken, async (req, res) => {

    // Calculate base amount based on duration
    if (item.pricePerHour && diffHours <= 24) {
-      baseRentalAmount = diffHours * Number(item.pricePerHour);
+      totalAmount = diffHours * Number(item.pricePerHour);
    } else if (item.pricePerDay) {
-      baseRentalAmount = diffDays * Number(item.pricePerDay);
+      totalAmount = diffDays * Number(item.pricePerDay);
    } else {
-      baseRentalAmount = 0;
+      totalAmount = 0;
    }

    // Check for overlapping rentals using datetime ranges
@@ -178,7 +179,12 @@ router.post("/", authenticateToken, async (req, res) => {
    }

    // Calculate fees using FeeCalculator
-    const fees = FeeCalculator.calculateRentalFees(baseRentalAmount);
+    const fees = FeeCalculator.calculateRentalFees(totalAmount);
+
+    // Validate that payment method was provided
+    if (!stripePaymentMethodId) {
+      return res.status(400).json({ error: "Payment method is required" });
+    }

    const rental = await Rental.create({
      itemId,
@@ -187,14 +193,14 @@ router.post("/", authenticateToken, async (req, res) => {
      startDateTime: rentalStartDateTime,
      endDateTime: rentalEndDateTime,
      totalAmount: fees.totalChargedAmount,
-      baseRentalAmount: fees.baseRentalAmount,
      platformFee: fees.platformFee,
-      processingFee: fees.processingFee,
      payoutAmount: fees.payoutAmount,
-      paymentStatus: paymentStatus || "pending",
+      paymentStatus: "pending",
+      status: "pending",
      deliveryMethod,
      deliveryAddress,
      notes,
+      stripePaymentMethodId,
    });

    const rentalWithDetails = await Rental.findByPk(rental.id, {
@@ -222,7 +228,21 @@ router.post("/", authenticateToken, async (req, res) => {
 router.put("/:id/status", authenticateToken, async (req, res) => {
  try {
    const { status } = req.body;
-    const rental = await Rental.findByPk(req.params.id);
+    const rental = await Rental.findByPk(req.params.id, {
+      include: [
+        { model: Item, as: "item" },
+        {
+          model: User,
+          as: "owner",
+          attributes: ["id", "username", "firstName", "lastName"],
+        },
+        {
+          model: User,
+          as: "renter",
+          attributes: ["id", "username", "firstName", "lastName", "stripeCustomerId"],
+        },
+      ],
+    });

    if (!rental) {
      return res.status(404).json({ error: "Rental not found" });
@@ -232,6 +252,69 @@ router.put("/:id/status", authenticateToken, async (req, res) => {
      return res.status(403).json({ error: "Unauthorized" });
    }

+    // If owner is approving a pending rental, charge the stored payment method
+    if (status === "confirmed" && rental.status === "pending" && rental.ownerId === req.user.id) {
+      if (!rental.stripePaymentMethodId) {
+        return res.status(400).json({ error: "No payment method found for this rental" });
+      }
+
+      try {
+        // Import StripeService to process the payment
+        const StripeService = require("../services/stripeService");
+        
+        // Check if renter has a stripe customer ID
+        if (!rental.renter.stripeCustomerId) {
+          return res.status(400).json({ error: "Renter does not have a Stripe customer account" });
+        }
+
+        // Create payment intent and charge the stored payment method
+        const paymentResult = await StripeService.chargePaymentMethod(
+          rental.stripePaymentMethodId,
+          rental.totalAmount,
+          rental.renter.stripeCustomerId,
+          {
+            rentalId: rental.id,
+            itemName: rental.item.name,
+            renterId: rental.renterId,
+            ownerId: rental.ownerId,
+          }
+        );
+
+        // Update rental with payment completion
+        await rental.update({
+          status: "confirmed",
+          paymentStatus: "paid",
+          stripePaymentIntentId: paymentResult.paymentIntentId,
+        });
+
+        const updatedRental = await Rental.findByPk(rental.id, {
+          include: [
+            { model: Item, as: "item" },
+            {
+              model: User,
+              as: "owner",
+              attributes: ["id", "username", "firstName", "lastName"],
+            },
+            {
+              model: User,
+              as: "renter",
+              attributes: ["id", "username", "firstName", "lastName"],
+            },
+          ],
+        });
+
+        res.json(updatedRental);
+        return;
+      } catch (paymentError) {
+        console.error("Payment failed during approval:", paymentError);
+        // Keep rental as pending, but inform of payment failure
+        return res.status(400).json({ 
+          error: "Payment failed during approval", 
+          details: paymentError.message 
+        });
+      }
+    }
+
    await rental.update({ status });

    const updatedRental = await Rental.findByPk(rental.id, {
@@ -393,13 +476,13 @@ router.post("/:id/mark-completed", authenticateToken, async (req, res) => {
 // Calculate fees for rental pricing display
 router.post("/calculate-fees", authenticateToken, async (req, res) => {
  try {
-    const { baseAmount } = req.body;
+    const { totalAmount } = req.body;

-    if (!baseAmount || baseAmount <= 0) {
+    if (!totalAmount || totalAmount <= 0) {
      return res.status(400).json({ error: "Valid base amount is required" });
    }

-    const fees = FeeCalculator.calculateRentalFees(baseAmount);
+    const fees = FeeCalculator.calculateRentalFees(totalAmount);
    const displayFees = FeeCalculator.formatFeesForDisplay(fees);

    res.json({
@@ -422,7 +505,7 @@ router.get("/earnings/status", authenticateToken, async (req, res) => {
      },
      attributes: [
        "id",
-        "baseRentalAmount",
+        "totalAmount",
        "platformFee",
        "payoutAmount",
        "payoutStatus",
@@ -440,4 +523,56 @@ router.get("/earnings/status", authenticateToken, async (req, res) => {
  }
 });

+// Get refund preview (what would happen if cancelled now)
+router.get("/:id/refund-preview", authenticateToken, async (req, res) => {
+  try {
+    const preview = await RefundService.getRefundPreview(
+      req.params.id,
+      req.user.id
+    );
+    res.json(preview);
+  } catch (error) {
+    console.error("Error getting refund preview:", error);
+    res.status(400).json({ error: error.message });
+  }
+});
+
+// Cancel rental with refund processing
+router.post("/:id/cancel", authenticateToken, async (req, res) => {
+  try {
+    const { reason } = req.body;
+
+    const result = await RefundService.processCancellation(
+      req.params.id,
+      req.user.id,
+      reason
+    );
+
+    // Return the updated rental with refund information
+    const updatedRental = await Rental.findByPk(result.rental.id, {
+      include: [
+        { model: Item, as: "item" },
+        {
+          model: User,
+          as: "owner",
+          attributes: ["id", "username", "firstName", "lastName"],
+        },
+        {
+          model: User,
+          as: "renter",
+          attributes: ["id", "username", "firstName", "lastName"],
+        },
+      ],
+    });
+
+    res.json({
+      rental: updatedRental,
+      refund: result.refund,
+    });
+  } catch (error) {
+    console.error("Error cancelling rental:", error);
+    res.status(400).json({ error: error.message });
+  }
+});
+
 module.exports = router;
--- a/backend/routes/stripe.js
+++ b/backend/routes/stripe.js
@@ -4,66 +4,6 @@ const { User, Item } = require("../models");
 const StripeService = require("../services/stripeService");
 const router = express.Router();

-router.post("/create-checkout-session", authenticateToken, async (req, res) => {
-  try {
-    const { itemName, total, return_url, rentalData } = req.body;
-
-    if (!itemName) {
-      return res.status(400).json({ error: "No item name found" });
-    }
-    if (total == null || total === undefined) {
-      return res.status(400).json({ error: "No total found" });
-    }
-    if (!return_url) {
-      return res.status(400).json({ error: "No return_url found" });
-    }
-
-    // Validate rental data and user authorization
-    if (rentalData && rentalData.itemId) {
-      const item = await Item.findByPk(rentalData.itemId);
-
-      if (!item) {
-        return res.status(404).json({ error: "Item not found" });
-      }
-
-      if (!item.availability) {
-        return res
-          .status(400)
-          .json({ error: "Item is not available for rent" });
-      }
-
-      // Check if user is trying to rent their own item
-      if (item.ownerId === req.user.id) {
-        return res.status(400).json({ error: "You cannot rent your own item" });
-      }
-    }
-
-    // Prepare metadata - Stripe metadata keys must be strings
-    const metadata = rentalData
-      ? {
-          itemId: rentalData.itemId,
-          renterId: req.user.id.toString(), // Add authenticated user ID
-          startDateTime: rentalData.startDateTime,
-          endDateTime: rentalData.endDateTime,
-          totalAmount: rentalData.totalAmount.toString(),
-          deliveryMethod: rentalData.deliveryMethod,
-        }
-      : { renterId: req.user.id.toString() };
-
-    const session = await StripeService.createCheckoutSession({
-      item_name: itemName,
-      total: total,
-      return_url: return_url,
-      metadata: metadata,
-    });
-
-    res.json({ clientSecret: session.client_secret });
-  } catch (error) {
-    console.error("Error creating checkout session:", error);
-    res.status(500).json({ error: error.message });
-  }
-});
-
 // Get checkout session status
 router.get("/checkout-session/:sessionId", async (req, res) => {
  try {
@@ -75,6 +15,7 @@ router.get("/checkout-session/:sessionId", async (req, res) => {
      status: session.status,
      payment_status: session.payment_status,
      customer_email: session.customer_details?.email,
+      setup_intent: session.setup_intent,
      metadata: session.metadata,
    });
  } catch (error) {
@@ -179,4 +120,54 @@ router.get("/account-status", authenticateToken, async (req, res) => {
  }
 });

+// Create embedded setup checkout session for collecting payment method
+router.post("/create-setup-checkout-session", authenticateToken, async (req, res) => {
+  try {
+    const { rentalData } = req.body;
+
+    const user = await User.findByPk(req.user.id);
+    
+    if (!user) {
+      return res.status(404).json({ error: "User not found" });
+    }
+
+    // Create or get Stripe customer
+    let stripeCustomerId = user.stripeCustomerId;
+    
+    if (!stripeCustomerId) {
+      // Create new Stripe customer
+      const customer = await StripeService.createCustomer({
+        email: user.email,
+        name: `${user.firstName} ${user.lastName}`,
+        metadata: {
+          userId: user.id.toString()
+        }
+      });
+      
+      stripeCustomerId = customer.id;
+      
+      // Save customer ID to user record
+      await user.update({ stripeCustomerId });
+    }
+    
+    // Add rental data to metadata if provided
+    const metadata = rentalData ? {
+      rentalData: JSON.stringify(rentalData)
+    } : {};
+    
+    const session = await StripeService.createSetupCheckoutSession({
+      customerId: stripeCustomerId,
+      metadata
+    });
+    
+    res.json({ 
+      clientSecret: session.client_secret,
+      sessionId: session.id
+    });
+  } catch (error) {
+    console.error("Error creating setup checkout session:", error);
+    res.status(500).json({ error: error.message });
+  }
+});
+
 module.exports = router;
--- a/backend/services/payoutService.js
+++ b/backend/services/payoutService.js
@@ -57,7 +57,7 @@ class PayoutService {
        metadata: {
          rentalId: rental.id,
          ownerId: rental.ownerId,
-          baseAmount: rental.baseRentalAmount.toString(),
+          totalAmount: rental.totalAmount.toString(),
          platformFee: rental.platformFee.toString(),
          startDateTime: rental.startDateTime.toISOString(),
          endDateTime: rental.endDateTime.toISOString(),
--- a/backend/services/refundService.js
+++ b/backend/services/refundService.js
@@ -0,0 +1,229 @@
+const { Rental } = require("../models");
+const StripeService = require("./stripeService");
+
+class RefundService {
+  /**
+   * Calculate refund amount based on policy and who cancelled
+   * @param {Object} rental - Rental instance
+   * @param {string} cancelledBy - 'renter' or 'owner'
+   * @returns {Object} - { refundAmount, refundPercentage, reason }
+   */
+  static calculateRefundAmount(rental, cancelledBy) {
+    const totalAmount = rental.totalAmount;
+    let refundPercentage = 0;
+    let reason = "";
+
+    if (cancelledBy === "owner") {
+      // Owner cancellation = full refund
+      refundPercentage = 1.0;
+      reason = "Full refund - cancelled by owner";
+    } else if (cancelledBy === "renter") {
+      // Calculate based on time until rental start
+      const now = new Date();
+      const startDateTime = new Date(rental.startDateTime);
+      const hoursUntilStart = (startDateTime - now) / (1000 * 60 * 60);
+
+      if (hoursUntilStart < 24) {
+        refundPercentage = 0.0;
+        reason = "No refund - cancelled within 24 hours of start time";
+      } else if (hoursUntilStart < 48) {
+        refundPercentage = 0.5;
+        reason = "50% refund - cancelled between 24-48 hours of start time";
+      } else {
+        refundPercentage = 1.0;
+        reason = "Full refund - cancelled more than 48 hours before start time";
+      }
+    }
+
+    const refundAmount = parseFloat((totalAmount * refundPercentage).toFixed(2));
+
+    return {
+      refundAmount,
+      refundPercentage,
+      reason,
+    };
+  }
+
+  /**
+   * Validate if a rental can be cancelled
+   * @param {Object} rental - Rental instance
+   * @param {string} userId - User ID attempting to cancel
+   * @returns {Object} - { canCancel, reason, cancelledBy }
+   */
+  static validateCancellationEligibility(rental, userId) {
+    // Check if rental is already cancelled
+    if (rental.status === "cancelled") {
+      return {
+        canCancel: false,
+        reason: "Rental is already cancelled",
+        cancelledBy: null,
+      };
+    }
+
+    // Check if rental is completed
+    if (rental.status === "completed") {
+      return {
+        canCancel: false,
+        reason: "Cannot cancel completed rental",
+        cancelledBy: null,
+      };
+    }
+
+    // Check if rental is active
+    if (rental.status === "active") {
+      return {
+        canCancel: false,
+        reason: "Cannot cancel active rental",
+        cancelledBy: null,
+      };
+    }
+
+    // Check if user has permission to cancel
+    let cancelledBy = null;
+    if (rental.renterId === userId) {
+      cancelledBy = "renter";
+    } else if (rental.ownerId === userId) {
+      cancelledBy = "owner";
+    } else {
+      return {
+        canCancel: false,
+        reason: "You are not authorized to cancel this rental",
+        cancelledBy: null,
+      };
+    }
+
+    // Check payment status
+    if (rental.paymentStatus !== "paid") {
+      return {
+        canCancel: false,
+        reason: "Cannot cancel rental that hasn't been paid",
+        cancelledBy: null,
+      };
+    }
+
+    return {
+      canCancel: true,
+      reason: "Cancellation allowed",
+      cancelledBy,
+    };
+  }
+
+  /**
+   * Process the full cancellation and refund
+   * @param {string} rentalId - Rental ID
+   * @param {string} userId - User ID cancelling
+   * @param {string} cancellationReason - Optional reason provided by user
+   * @returns {Object} - Updated rental with refund information
+   */
+  static async processCancellation(rentalId, userId, cancellationReason = null) {
+    const rental = await Rental.findByPk(rentalId);
+
+    if (!rental) {
+      throw new Error("Rental not found");
+    }
+
+    // Validate cancellation eligibility
+    const eligibility = this.validateCancellationEligibility(rental, userId);
+    if (!eligibility.canCancel) {
+      throw new Error(eligibility.reason);
+    }
+
+    // Calculate refund amount
+    const refundCalculation = this.calculateRefundAmount(
+      rental,
+      eligibility.cancelledBy
+    );
+
+    let stripeRefundId = null;
+    let refundProcessedAt = null;
+
+    // Process refund with Stripe if amount > 0 and we have payment intent ID
+    if (
+      refundCalculation.refundAmount > 0 &&
+      rental.stripePaymentIntentId
+    ) {
+      try {
+        const refund = await StripeService.createRefund({
+          paymentIntentId: rental.stripePaymentIntentId,
+          amount: refundCalculation.refundAmount,
+          metadata: {
+            rentalId: rental.id,
+            cancelledBy: eligibility.cancelledBy,
+            refundReason: refundCalculation.reason,
+          },
+        });
+
+        stripeRefundId = refund.id;
+        refundProcessedAt = new Date();
+      } catch (error) {
+        console.error("Error processing Stripe refund:", error);
+        throw new Error(`Failed to process refund: ${error.message}`);
+      }
+    } else if (refundCalculation.refundAmount > 0) {
+      // Log warning if we should refund but don't have payment intent
+      console.warn(
+        `Refund amount calculated but no payment intent ID for rental ${rentalId}`
+      );
+    }
+
+    // Update rental with cancellation and refund info
+    const updatedRental = await rental.update({
+      status: "cancelled",
+      cancelledBy: eligibility.cancelledBy,
+      cancelledAt: new Date(),
+      refundAmount: refundCalculation.refundAmount,
+      refundProcessedAt,
+      refundReason:
+        cancellationReason || refundCalculation.reason,
+      stripeRefundId,
+      // Reset payout status since rental is cancelled
+      payoutStatus: "pending",
+    });
+
+    return {
+      rental: updatedRental,
+      refund: {
+        amount: refundCalculation.refundAmount,
+        percentage: refundCalculation.refundPercentage,
+        reason: refundCalculation.reason,
+        processed: !!refundProcessedAt,
+        stripeRefundId,
+      },
+    };
+  }
+
+  /**
+   * Get refund preview without processing
+   * @param {string} rentalId - Rental ID
+   * @param {string} userId - User ID requesting preview
+   * @returns {Object} - Preview of refund calculation
+   */
+  static async getRefundPreview(rentalId, userId) {
+    const rental = await Rental.findByPk(rentalId);
+
+    if (!rental) {
+      throw new Error("Rental not found");
+    }
+
+    const eligibility = this.validateCancellationEligibility(rental, userId);
+    if (!eligibility.canCancel) {
+      throw new Error(eligibility.reason);
+    }
+
+    const refundCalculation = this.calculateRefundAmount(
+      rental,
+      eligibility.cancelledBy
+    );
+
+    return {
+      canCancel: true,
+      cancelledBy: eligibility.cancelledBy,
+      refundAmount: refundCalculation.refundAmount,
+      refundPercentage: refundCalculation.refundPercentage,
+      reason: refundCalculation.reason,
+      totalAmount: rental.totalAmount,
+    };
+  }
+}
+
+module.exports = RefundService;
--- a/backend/services/stripeService.js
+++ b/backend/services/stripeService.js
@@ -1,44 +1,12 @@
 const stripe = require("stripe")(process.env.STRIPE_SECRET_KEY);

 class StripeService {
-  static async createCheckoutSession({
-    item_name,
-    total,
-    return_url,
-    metadata = {},
-  }) {
-    try {
-      const sessionConfig = {
-        line_items: [
-          {
-            price_data: {
-              currency: "usd",
-              product_data: {
-                name: item_name,
-              },
-              unit_amount: total * 100,
-            },
-            quantity: 1,
-          },
-        ],
-        mode: "payment",
-        ui_mode: "embedded",
-        return_url: return_url,
-        metadata: metadata,
-      };
-
-      const session = await stripe.checkout.sessions.create(sessionConfig);
-
-      return session;
-    } catch (error) {
-      console.error("Error creating checkout session:", error);
-      throw error;
-    }
-  }

  static async getCheckoutSession(sessionId) {
    try {
-      return await stripe.checkout.sessions.retrieve(sessionId);
+      return await stripe.checkout.sessions.retrieve(sessionId, {
+        expand: ['setup_intent', 'setup_intent.payment_method']
+      });
    } catch (error) {
      console.error("Error retrieving checkout session:", error);
      throw error;
@@ -115,6 +83,97 @@ class StripeService {
      throw error;
    }
  }
+
+  static async createRefund({
+    paymentIntentId,
+    amount,
+    metadata = {},
+    reason = "requested_by_customer",
+  }) {
+    try {
+      const refund = await stripe.refunds.create({
+        payment_intent: paymentIntentId,
+        amount: Math.round(amount * 100), // Convert to cents
+        metadata,
+        reason,
+      });
+
+      return refund;
+    } catch (error) {
+      console.error("Error creating refund:", error);
+      throw error;
+    }
+  }
+
+  static async getRefund(refundId) {
+    try {
+      return await stripe.refunds.retrieve(refundId);
+    } catch (error) {
+      console.error("Error retrieving refund:", error);
+      throw error;
+    }
+  }
+
+  static async chargePaymentMethod(paymentMethodId, amount, customerId, metadata = {}) {
+    try {
+      // Create a payment intent with the stored payment method
+      const paymentIntent = await stripe.paymentIntents.create({
+        amount: Math.round(amount * 100), // Convert to cents
+        currency: "usd",
+        payment_method: paymentMethodId,
+        customer: customerId, // Include customer ID
+        confirm: true, // Automatically confirm the payment
+        return_url: `${process.env.FRONTEND_URL || 'http://localhost:3000'}/payment-complete`,
+        metadata,
+      });
+
+      return {
+        paymentIntentId: paymentIntent.id,
+        status: paymentIntent.status,
+        clientSecret: paymentIntent.client_secret,
+      };
+    } catch (error) {
+      console.error("Error charging payment method:", error);
+      throw error;
+    }
+  }
+
+  static async createCustomer({ email, name, metadata = {} }) {
+    try {
+      const customer = await stripe.customers.create({
+        email,
+        name,
+        metadata,
+      });
+
+      return customer;
+    } catch (error) {
+      console.error("Error creating customer:", error);
+      throw error;
+    }
+  }
+
+
+  static async createSetupCheckoutSession({ customerId, metadata = {} }) {
+    try {
+      const session = await stripe.checkout.sessions.create({
+        customer: customerId,
+        payment_method_types: ['card', 'us_bank_account', 'link'],
+        mode: 'setup',
+        ui_mode: 'embedded',
+        redirect_on_completion: 'never',
+        metadata: {
+          type: 'payment_method_setup',
+          ...metadata
+        }
+      });
+
+      return session;
+    } catch (error) {
+      console.error("Error creating setup checkout session:", error);
+      throw error;
+    }
+  }
 }

 module.exports = StripeService;
--- a/backend/utils/feeCalculator.js
+++ b/backend/utils/feeCalculator.js
@@ -1,26 +1,21 @@
 class FeeCalculator {
-  static calculateRentalFees(baseAmount) {
+  static calculateRentalFees(totalAmount) {
    const platformFeeRate = 0.2;
-    const stripeRate = 0.029;
-    const stripeFixedFee = 0.3;

-    const platformFee = baseAmount * platformFeeRate;
-    const processingFee = baseAmount * stripeRate + stripeFixedFee;
+    const platformFee = totalAmount * platformFeeRate;

    return {
-      baseRentalAmount: parseFloat(baseAmount.toFixed(2)),
+      totalAmount: parseFloat(totalAmount.toFixed(2)),
      platformFee: parseFloat(platformFee.toFixed(2)),
-      processingFee: parseFloat(processingFee.toFixed(2)),
-      totalChargedAmount: parseFloat((baseAmount + processingFee).toFixed(2)),
-      payoutAmount: parseFloat((baseAmount - platformFee).toFixed(2)),
+      totalChargedAmount: parseFloat(totalAmount.toFixed(2)),
+      payoutAmount: parseFloat((totalAmount - platformFee).toFixed(2)),
    };
  }

  static formatFeesForDisplay(fees) {
    return {
-      baseRental: `$${fees.baseRentalAmount.toFixed(2)}`,
+      totalAmount: `$${fees.totalAmount.toFixed(2)}`,
      platformFee: `$${fees.platformFee.toFixed(2)} (20%)`,
-      processingFee: `$${fees.processingFee.toFixed(2)} (2.9% + $0.30)`,
      totalCharge: `$${fees.totalChargedAmount.toFixed(2)}`,
      ownerPayout: `$${fees.payoutAmount.toFixed(2)}`,
    };
--- a/frontend/src/App.tsx
+++ b/frontend/src/App.tsx
@@ -23,7 +23,6 @@ import ItemRequestDetail from './pages/ItemRequestDetail';
 import CreateItemRequest from './pages/CreateItemRequest';
 import MyRequests from './pages/MyRequests';
 import EarningsDashboard from './pages/EarningsDashboard';
-import CheckoutReturn from './components/CheckoutReturn';
 import PrivateRoute from './components/PrivateRoute';
 import './App.css';

@@ -131,14 +130,6 @@ function App() {
                <EarningsDashboard />
              </PrivateRoute>
            }
-          />
-          <Route
-            path="/checkout/return"
-            element={
-              <PrivateRoute>
-                <CheckoutReturn />
-              </PrivateRoute>
-            }
          />
            </Routes>
          </main>
--- a/frontend/src/components/CheckoutReturn.tsx
+++ b/frontend/src/components/CheckoutReturn.tsx
@@ -1,254 +0,0 @@
-import React, { useState, useEffect, useRef } from "react";
-import { useSearchParams, useNavigate } from "react-router-dom";
-import { stripeAPI, rentalAPI } from "../services/api";
-
-const CheckoutReturn: React.FC = () => {
-  const [searchParams] = useSearchParams();
-  const navigate = useNavigate();
-  const [status, setStatus] = useState<
-    "loading" | "success" | "error" | "failed" | "rental_error"
-  >("loading");
-  const [error, setError] = useState<string | null>(null);
-  const [processing, setProcessing] = useState(false);
-  const [itemId, setItemId] = useState<string | null>(null);
-  const [sessionMetadata, setSessionMetadata] = useState<any>(null);
-  const hasProcessed = useRef(false);
-
-  useEffect(() => {
-    if (hasProcessed.current) return;
-
-    const sessionId = searchParams.get("session_id");
-
-    if (!sessionId) {
-      setStatus("error");
-      setError("No session ID found in URL");
-      return;
-    }
-
-    hasProcessed.current = true;
-    checkSessionStatus(sessionId);
-  }, [searchParams]);
-
-  const createRental = async (metadata: any) => {
-    try {
-      if (!metadata || !metadata.itemId) {
-        throw new Error("No rental data found in Stripe metadata");
-      }
-
-      // Convert metadata back to proper types
-      const rentalData = {
-        itemId: metadata.itemId,
-        startDateTime: metadata.startDateTime,
-        endDateTime: metadata.endDateTime,
-        totalAmount: parseFloat(metadata.totalAmount),
-        deliveryMethod: metadata.deliveryMethod,
-        paymentStatus: "paid", // Set since payment already succeeded
-      };
-
-      const response = await rentalAPI.createRental(rentalData);
-
-      return response;
-    } catch (error: any) {
-      const errorMessage =
-        error.response?.data?.message ||
-        error.message ||
-        "Failed to create rental";
-      console.error("Rental creation error:", errorMessage);
-      throw new Error(errorMessage);
-    }
-  };
-
-  const checkSessionStatus = async (sessionId: string) => {
-    try {
-      setProcessing(true);
-
-      // Get checkout session status
-      const response = await stripeAPI.getCheckoutSession(sessionId);
-
-      const { status: sessionStatus, payment_status, metadata } = response.data;
-
-      // Store metadata for retry functionality
-      setSessionMetadata(metadata);
-      if (metadata?.itemId) {
-        setItemId(metadata.itemId);
-      }
-
-      if (sessionStatus === "complete" && payment_status === "paid") {
-        // Payment was successful - now create the rental
-        try {
-          const rentalResult = await createRental(metadata);
-          setStatus("success");
-        } catch (rentalError: any) {
-          // Payment succeeded but rental creation failed
-          setStatus("rental_error");
-          setError(rentalError.message || "Failed to create rental record");
-        }
-      } else if (sessionStatus === "open") {
-        // Payment was not completed
-        setStatus("failed");
-        setError("Payment was not completed. Please try again.");
-      } else {
-        setStatus("error");
-        setError("Payment failed or was cancelled.");
-      }
-    } catch (error: any) {
-      setStatus("error");
-      setError(
-        error.response?.data?.error || "Failed to verify payment status"
-      );
-    } finally {
-      setProcessing(false);
-    }
-  };
-
-  const handleRetry = () => {
-    // Go back to the item page to try payment again
-    if (itemId) {
-      navigate(`/items/${itemId}`);
-    } else {
-      navigate("/");
-    }
-  };
-
-  const handleRetryRentalCreation = async () => {
-    setProcessing(true);
-    try {
-      await createRental(sessionMetadata);
-      setStatus("success");
-      setError(null);
-    } catch (error: any) {
-      setError(error.message || "Failed to create rental record");
-    } finally {
-      setProcessing(false);
-    }
-  };
-
-  const handleGoToRentals = () => {
-    navigate("/my-rentals");
-  };
-
-  if (status === "loading" || processing) {
-    return (
-      <div className="container mt-5">
-        <div className="row justify-content-center">
-          <div className="col-md-6 text-center">
-            <div className="spinner-border mb-3" role="status">
-              <span className="visually-hidden">Loading...</span>
-            </div>
-            <h3>Processing your payment...</h3>
-            <p className="text-muted">
-              Please wait while we confirm your payment and set up your rental.
-            </p>
-          </div>
-        </div>
-      </div>
-    );
-  }
-
-  if (status === "success") {
-    return (
-      <div className="container mt-5">
-        <div className="row justify-content-center">
-          <div className="col-md-6 text-center">
-            <div className="alert alert-success p-4">
-              <i className="bi bi-check-circle-fill display-1 text-success mb-3"></i>
-              <h2>Payment Successful!</h2>
-              <p className="mb-4">
-                Your rental has been confirmed. You can view the details in your
-                rentals page.
-              </p>
-              <div className="d-grid gap-2 d-md-block">
-                <button
-                  className="btn btn-primary btn-lg me-2"
-                  onClick={handleGoToRentals}
-                >
-                  View My Rentals
-                </button>
-                <button
-                  className="btn btn-outline-secondary btn-lg"
-                  onClick={() => navigate("/")}
-                >
-                  Continue Browsing
-                </button>
-              </div>
-            </div>
-          </div>
-        </div>
-      </div>
-    );
-  }
-
-  if (status === "rental_error") {
-    return (
-      <div className="container mt-5">
-        <div className="row justify-content-center">
-          <div className="col-md-6 text-center">
-            <div className="alert alert-warning p-4">
-              <i className="bi bi-exclamation-triangle-fill display-1 text-warning mb-3"></i>
-              <h2>Payment Successful - Rental Setup Issue</h2>
-              <p className="mb-4">
-                Your payment was processed successfully, but we encountered an
-                issue creating your rental record:
-                <br />
-                <strong>{error}</strong>
-              </p>
-              <div className="d-grid gap-2 d-md-block">
-                <button
-                  className="btn btn-primary btn-lg me-2"
-                  onClick={handleRetryRentalCreation}
-                  disabled={processing}
-                >
-                  {processing ? "Retrying..." : "Retry Rental Creation"}
-                </button>
-                <button
-                  className="btn btn-outline-secondary btn-lg"
-                  onClick={() => navigate("/")}
-                >
-                  Contact Support
-                </button>
-              </div>
-            </div>
-          </div>
-        </div>
-      </div>
-    );
-  }
-
-  if (status === "failed" || status === "error") {
-    return (
-      <div className="container mt-5">
-        <div className="row justify-content-center">
-          <div className="col-md-6 text-center">
-            <div className="alert alert-danger p-4">
-              <i className="bi bi-exclamation-triangle-fill display-1 text-danger mb-3"></i>
-              <h2>
-                {status === "failed" ? "Payment Incomplete" : "Payment Error"}
-              </h2>
-              <p className="mb-4">
-                {error || "There was an issue processing your payment."}
-              </p>
-              <div className="d-grid gap-2 d-md-block">
-                <button
-                  className="btn btn-primary btn-lg me-2"
-                  onClick={handleRetry}
-                >
-                  Try Again
-                </button>
-                <button
-                  className="btn btn-outline-secondary btn-lg"
-                  onClick={() => navigate("/")}
-                >
-                  Go Home
-                </button>
-              </div>
-            </div>
-          </div>
-        </div>
-      </div>
-    );
-  }
-
-  return null;
-};
-
-export default CheckoutReturn;
--- a/frontend/src/components/EmbeddedStripeCheckout.tsx
+++ b/frontend/src/components/EmbeddedStripeCheckout.tsx
@@ -0,0 +1,128 @@
+import React, { useState, useEffect, useCallback, useRef } from "react";
+import { loadStripe } from "@stripe/stripe-js";
+import {
+  EmbeddedCheckoutProvider,
+  EmbeddedCheckout,
+} from "@stripe/react-stripe-js";
+import { stripeAPI, rentalAPI } from "../services/api";
+
+const stripePromise = loadStripe(
+  process.env.REACT_APP_STRIPE_PUBLISHABLE_KEY || ""
+);
+
+interface EmbeddedStripeCheckoutProps {
+  rentalData: any;
+  onSuccess: () => void;
+  onError: (error: string) => void;
+}
+
+const EmbeddedStripeCheckout: React.FC<EmbeddedStripeCheckoutProps> = ({
+  rentalData,
+  onSuccess,
+  onError,
+}) => {
+  const [clientSecret, setClientSecret] = useState<string>("");
+  const [creating, setCreating] = useState(false);
+  const [sessionId, setSessionId] = useState<string>("");
+
+  const createCheckoutSession = useCallback(async () => {
+    try {
+      setCreating(true);
+      
+      const response = await stripeAPI.createSetupCheckoutSession({
+        rentalData
+      });
+      
+      setClientSecret(response.data.clientSecret);
+      setSessionId(response.data.sessionId);
+    } catch (error: any) {
+      onError(
+        error.response?.data?.error || "Failed to create checkout session"
+      );
+    } finally {
+      setCreating(false);
+    }
+  }, [rentalData, onError]);
+
+  useEffect(() => {
+    createCheckoutSession();
+  }, [createCheckoutSession]);
+
+  const handleComplete = useCallback(() => {
+    // For embedded checkout, we need to retrieve the session to get payment method
+    (async () => {
+      try {
+        if (!sessionId) {
+          throw new Error("No session ID available");
+        }
+
+        // Get the completed checkout session
+        const sessionResponse = await stripeAPI.getCheckoutSession(sessionId);
+        const { status: sessionStatus, setup_intent } = sessionResponse.data;
+
+        if (sessionStatus !== "complete") {
+          throw new Error("Payment setup was not completed");
+        }
+
+        if (!setup_intent?.payment_method) {
+          throw new Error("No payment method found in setup intent");
+        }
+
+        // Extract payment method ID - handle both string ID and object cases
+        const paymentMethodId = typeof setup_intent.payment_method === 'string' 
+          ? setup_intent.payment_method 
+          : setup_intent.payment_method.id;
+
+        if (!paymentMethodId) {
+          throw new Error("No payment method ID found");
+        }
+
+        // Create the rental with the payment method ID
+        const rentalPayload = {
+          ...rentalData,
+          stripePaymentMethodId: paymentMethodId
+        };
+
+        await rentalAPI.createRental(rentalPayload);
+        onSuccess();
+      } catch (error: any) {
+        onError(error.response?.data?.error || error.message || "Failed to complete rental request");
+      }
+    })();
+  }, [sessionId, rentalData, onSuccess, onError]);
+
+  if (creating) {
+    return (
+      <div className="text-center py-4">
+        <div className="spinner-border mb-3" role="status">
+          <span className="visually-hidden">Loading...</span>
+        </div>
+        <p>Preparing secure checkout...</p>
+      </div>
+    );
+  }
+
+  if (!clientSecret) {
+    return (
+      <div className="text-center py-4">
+        <p className="text-muted">Unable to load checkout</p>
+      </div>
+    );
+  }
+
+  return (
+    <div id="embedded-checkout">
+      <EmbeddedCheckoutProvider
+        stripe={stripePromise}
+        options={{
+          clientSecret,
+          onComplete: handleComplete
+        }}
+      >
+        <EmbeddedCheckout />
+      </EmbeddedCheckoutProvider>
+    </div>
+  );
+};
+
+export default EmbeddedStripeCheckout;
--- a/frontend/src/components/RentalCancellationModal.tsx
+++ b/frontend/src/components/RentalCancellationModal.tsx
@@ -0,0 +1,252 @@
+import React, { useState, useEffect, useCallback } from "react";
+import { rentalAPI } from "../services/api";
+import { RefundPreview, Rental } from "../types";
+
+interface RentalCancellationModalProps {
+  show: boolean;
+  onHide: () => void;
+  rental: Rental;
+  onCancellationComplete: (updatedRental: Rental) => void;
+}
+
+const RentalCancellationModal: React.FC<RentalCancellationModalProps> = ({
+  show,
+  onHide,
+  rental,
+  onCancellationComplete,
+}) => {
+  const [refundPreview, setRefundPreview] = useState<RefundPreview | null>(
+    null
+  );
+  const [loading, setLoading] = useState(false);
+  const [processing, setProcessing] = useState(false);
+  const [error, setError] = useState<string | null>(null);
+  const [reason, setReason] = useState("");
+
+  useEffect(() => {
+    if (show && rental) {
+      loadRefundPreview();
+    }
+  }, [show, rental]);
+
+  const loadRefundPreview = async () => {
+    try {
+      setLoading(true);
+      setError(null);
+      const response = await rentalAPI.getRefundPreview(rental.id);
+      setRefundPreview(response.data);
+    } catch (error: any) {
+      setError(
+        error.response?.data?.error || "Failed to calculate refund preview"
+      );
+    } finally {
+      setLoading(false);
+    }
+  };
+
+  const handleCancel = async () => {
+    if (!refundPreview) return;
+
+    try {
+      setProcessing(true);
+      setError(null);
+
+      const response = await rentalAPI.cancelRental(rental.id, reason.trim());
+      onCancellationComplete(response.data.rental);
+      onHide();
+    } catch (error: any) {
+      setError(error.response?.data?.error || "Failed to cancel rental");
+    } finally {
+      setProcessing(false);
+    }
+  };
+
+  const formatCurrency = (amount: number | string | undefined) => {
+    const numAmount = Number(amount) || 0;
+    return `$${numAmount.toFixed(2)}`;
+  };
+
+  const getRefundColor = (percentage: number) => {
+    if (percentage === 0) return "danger";
+    if (percentage === 0.5) return "warning";
+    return "success";
+  };
+
+  const handleBackdropClick = useCallback(
+    (e: React.MouseEvent) => {
+      if (e.target === e.currentTarget) {
+        onHide();
+      }
+    },
+    [onHide]
+  );
+
+  const handleKeyDown = useCallback(
+    (e: KeyboardEvent) => {
+      if (e.key === "Escape") {
+        onHide();
+      }
+    },
+    [onHide]
+  );
+
+  useEffect(() => {
+    if (show) {
+      document.addEventListener("keydown", handleKeyDown);
+      document.body.style.overflow = "hidden";
+    } else {
+      document.removeEventListener("keydown", handleKeyDown);
+      document.body.style.overflow = "unset";
+    }
+
+    return () => {
+      document.removeEventListener("keydown", handleKeyDown);
+      document.body.style.overflow = "unset";
+    };
+  }, [show, handleKeyDown]);
+
+  if (!show) return null;
+
+  return (
+    <div
+      className="modal d-block"
+      style={{ backgroundColor: "rgba(0,0,0,0.5)" }}
+      onClick={handleBackdropClick}
+    >
+      <div className="modal-dialog modal-lg modal-dialog-centered">
+        <div className="modal-content">
+          <div className="modal-header">
+            <h5 className="modal-title">Cancel Rental</h5>
+            <button
+              type="button"
+              className="btn-close"
+              onClick={onHide}
+              aria-label="Close"
+            ></button>
+          </div>
+          <div className="modal-body">
+            {loading && (
+              <div className="text-center py-4">
+                <div className="spinner-border me-2" role="status">
+                  <span className="visually-hidden">Loading...</span>
+                </div>
+                Calculating refund...
+              </div>
+            )}
+
+            {error && (
+              <div className="alert alert-danger mb-3" role="alert">
+                {error}
+              </div>
+            )}
+
+            {refundPreview && !loading && (
+              <>
+                <div className="mb-4">
+                  <h5>Rental Details</h5>
+                  <div className="bg-light p-3 rounded">
+                    <p>
+                      <strong>Item:</strong> {rental.item?.name}
+                    </p>
+                    <p>
+                      <strong>Start:</strong>{" "}
+                      {new Date(rental.startDateTime).toLocaleString()}
+                    </p>
+                    <p>
+                      <strong>End:</strong>{" "}
+                      {new Date(rental.endDateTime).toLocaleString()}
+                    </p>
+                    <p>
+                      <strong>Total Amount:</strong>{" "}
+                      {formatCurrency(rental.totalAmount)}
+                    </p>
+                  </div>
+                </div>
+
+                <div className="mb-4">
+                  <h5>Refund Information</h5>
+                  <div
+                    className={`alert alert-${getRefundColor(
+                      refundPreview.refundPercentage
+                    )}`}
+                  >
+                    <div className="d-flex justify-content-between align-items-center">
+                      <div>
+                        <strong>Refund Amount:</strong>{" "}
+                        {formatCurrency(refundPreview.refundAmount)}
+                      </div>
+                      <div>
+                        <strong>
+                          {Math.round(refundPreview.refundPercentage * 100)}%
+                        </strong>
+                      </div>
+                    </div>
+                    <hr />
+                    <small>{refundPreview.reason}</small>
+                  </div>
+                </div>
+
+                <form>
+                  <div className="mb-3">
+                    <label className="form-label">
+                      Cancellation Reason (Optional)
+                    </label>
+                    <textarea
+                      className="form-control"
+                      rows={3}
+                      value={reason}
+                      onChange={(e) => setReason(e.target.value)}
+                      placeholder="Please provide a reason for cancellation..."
+                      maxLength={500}
+                    />
+                    <div className="form-text text-muted">
+                      {reason.length}/500 characters
+                    </div>
+                  </div>
+                </form>
+              </>
+            )}
+          </div>
+          <div className="modal-footer">
+            <button
+              type="button"
+              className="btn btn-secondary"
+              onClick={onHide}
+              disabled={processing}
+            >
+              Keep Rental
+            </button>
+            {refundPreview && (
+              <button
+                type="button"
+                className="btn btn-danger"
+                onClick={handleCancel}
+                disabled={processing || loading}
+              >
+                {processing ? (
+                  <>
+                    <div
+                      className="spinner-border spinner-border-sm me-2"
+                      role="status"
+                    >
+                      <span className="visually-hidden">Loading...</span>
+                    </div>
+                    Processing...
+                  </>
+                ) : (
+                  `Cancel with ${
+                    refundPreview.refundAmount > 0
+                      ? `Refund ${formatCurrency(refundPreview.refundAmount)}`
+                      : "No Refund"
+                  }`
+                )}
+              </button>
+            )}
+          </div>
+        </div>
+      </div>
+    </div>
+  );
+};
+
+export default RentalCancellationModal;
--- a/frontend/src/components/StripePaymentForm.tsx
+++ b/frontend/src/components/StripePaymentForm.tsx
@@ -1,103 +0,0 @@
-import React, { useState, useEffect, useCallback, useRef } from "react";
-import { loadStripe } from "@stripe/stripe-js";
-import {
-  EmbeddedCheckoutProvider,
-  EmbeddedCheckout,
-  Elements,
-  useStripe,
-  useElements,
-} from "@stripe/react-stripe-js";
-import { stripeAPI } from "../services/api";
-
-const stripePromise = loadStripe(
-  process.env.REACT_APP_STRIPE_PUBLISHABLE_KEY || ""
-);
-
-interface PaymentFormProps {
-  itemName: string;
-  total: number;
-  rentalData: any;
-  onSuccess: () => void;
-  onError: (error: string) => void;
-  disabled?: boolean;
-}
-
-const PaymentForm: React.FC<PaymentFormProps> = ({
-  itemName,
-  total,
-  rentalData,
-  onSuccess,
-  onError,
-  disabled,
-}) => {
-  // const stripe = useStripe();
-  // const elements = useElements();
-  // const [processing, setProcessing] = useState(false);
-  const [clientSecret, setClientSecret] = useState<string>("");
-  const hasCreatedSession = useRef(false);
-
-  const createCheckoutSession = useCallback(async () => {
-    if (hasCreatedSession.current) return;
-
-    try {
-      hasCreatedSession.current = true;
-      const return_url = `${window.location.origin}/checkout/return?session_id={CHECKOUT_SESSION_ID}`;
-
-      const requestData = {
-        itemName,
-        total,
-        return_url,
-        rentalData,
-      };
-
-      const response = await stripeAPI.createCheckoutSession(requestData);
-
-      setClientSecret(response.data.clientSecret);
-    } catch (error: any) {
-      hasCreatedSession.current = false; // Reset on error so it can be retried
-      onError(
-        error.response?.data?.error || "Failed to create checkout session"
-      );
-    }
-  }, [itemName, total, rentalData, onError]);
-
-  useEffect(() => {
-    if (itemName && total > 0 && !clientSecret) {
-      createCheckoutSession();
-    }
-  }, [itemName, total, clientSecret, createCheckoutSession]);
-
-  return (
-    <div id="checkout">
-      {clientSecret && (
-        <EmbeddedCheckoutProvider
-          key={clientSecret}
-          stripe={stripePromise}
-          options={{ clientSecret }}
-        >
-          <EmbeddedCheckout />
-        </EmbeddedCheckoutProvider>
-      )}
-      {!clientSecret && (
-        <div className="text-center">
-          <div className="spinner-border" role="status">
-            <span className="visually-hidden">Loading payment...</span>
-          </div>
-          <p className="mt-2">Preparing payment...</p>
-        </div>
-      )}
-    </div>
-  );
-};
-
-interface StripePaymentFormProps extends PaymentFormProps {}
-
-const StripePaymentForm: React.FC<StripePaymentFormProps> = (props) => {
-  return (
-    <Elements stripe={stripePromise}>
-      <PaymentForm {...props} />
-    </Elements>
-  );
-};
-
-export default StripePaymentForm;
--- a/frontend/src/pages/MyListings.tsx
+++ b/frontend/src/pages/MyListings.tsx
@@ -5,6 +5,7 @@ import api from "../services/api";
 import { Item, Rental } from "../types";
 import { rentalAPI } from "../services/api";
 import ReviewRenterModal from "../components/ReviewRenterModal";
+import RentalCancellationModal from "../components/RentalCancellationModal";

 const MyListings: React.FC = () => {
  // Helper function to format time
@@ -37,6 +38,10 @@ const MyListings: React.FC = () => {
  const [showReviewRenterModal, setShowReviewRenterModal] = useState(false);
  const [selectedRentalForReview, setSelectedRentalForReview] =
    useState<Rental | null>(null);
+  const [showCancelModal, setShowCancelModal] = useState(false);
+  const [rentalToCancel, setRentalToCancel] = useState<Rental | null>(null);
+  const [isProcessingPayment, setIsProcessingPayment] = useState<string>("");
+  const [processingSuccess, setProcessingSuccess] = useState<string>("");

  useEffect(() => {
    fetchMyListings();
@@ -106,12 +111,38 @@ const MyListings: React.FC = () => {
  // Owner functionality handlers
  const handleAcceptRental = async (rentalId: string) => {
    try {
-      await rentalAPI.updateRentalStatus(rentalId, "confirmed");
+      setIsProcessingPayment(rentalId);
+      const response = await rentalAPI.updateRentalStatus(
+        rentalId,
+        "confirmed"
+      );
+
+      // Check if payment processing was successful
+      if (response.data.paymentStatus === "paid") {
+        // Payment successful, rental confirmed
+        setProcessingSuccess(rentalId);
+        setTimeout(() => {
+          setProcessingSuccess("");
+        }, 3000);
+      }
+
      fetchOwnerRentals();
-    } catch (err) {
+    } catch (err: any) {
      console.error("Failed to accept rental request:", err);
+
+      // Check if it's a payment failure
+      if (err.response?.data?.error?.includes("Payment failed")) {
+        alert(
+          `Payment failed during approval: ${
+            err.response.data.details || "Unknown payment error"
+          }`
+        );
+      } else {
        alert("Failed to accept rental request");
      }
+    } finally {
+      setIsProcessingPayment("");
+    }
  };

  const handleRejectRental = async (rentalId: string) => {
@@ -145,9 +176,27 @@ const MyListings: React.FC = () => {
    fetchOwnerRentals();
  };

+  const handleCancelClick = (rental: Rental) => {
+    setRentalToCancel(rental);
+    setShowCancelModal(true);
+  };
+
+  const handleCancellationComplete = (updatedRental: Rental) => {
+    // Update the rental in the owner rentals list
+    setOwnerRentals((prev) =>
+      prev.map((rental) =>
+        rental.id === updatedRental.id ? updatedRental : rental
+      )
+    );
+    setShowCancelModal(false);
+    setRentalToCancel(null);
+  };
+
  // Filter owner rentals
  const allOwnerRentals = ownerRentals
-    .filter((r) => ["pending", "confirmed", "active"].includes(r.status))
+    .filter((r) =>
+      ["pending", "confirmed", "active", "cancelled"].includes(r.status)
+    )
    .sort((a, b) => {
      const statusOrder = { pending: 0, confirmed: 1, active: 2 };
      return (
@@ -242,6 +291,35 @@ const MyListings: React.FC = () => {
                      <strong>Total:</strong> ${rental.totalAmount}
                    </p>

+                    {rental.status === "cancelled" &&
+                      rental.refundAmount !== undefined && (
+                        <div className="alert alert-info mt-2 mb-2 p-2 small">
+                          <strong>
+                            <i className="bi bi-arrow-return-left me-1"></i>
+                            Refund:
+                          </strong>{" "}
+                          ${Number(rental.refundAmount || 0).toFixed(2)}
+                          {rental.refundProcessedAt && (
+                            <small className="d-block text-muted mt-1">
+                              Processed:{" "}
+                              {new Date(
+                                rental.refundProcessedAt
+                              ).toLocaleDateString()}
+                            </small>
+                          )}
+                          {rental.refundReason && (
+                            <small className="d-block mt-1">
+                              {rental.refundReason}
+                            </small>
+                          )}
+                          {rental.cancelledBy && (
+                            <small className="d-block text-muted mt-1">
+                              Cancelled by: {rental.cancelledBy}
+                            </small>
+                          )}
+                        </div>
+                      )}
+
                    {rental.itemPrivateMessage && rental.itemReviewVisible && (
                      <div className="alert alert-info mt-2 mb-2 p-2 small">
                        <strong>
@@ -259,8 +337,28 @@ const MyListings: React.FC = () => {
                          <button
                            className="btn btn-sm btn-success"
                            onClick={() => handleAcceptRental(rental.id)}
+                            disabled={isProcessingPayment === rental.id}
                          >
-                            Accept
+                            {isProcessingPayment === rental.id ? (
+                              <>
+                                <div
+                                  className="spinner-border spinner-border-sm me-2"
+                                  role="status"
+                                >
+                                  <span className="visually-hidden">
+                                    Loading...
+                                  </span>
+                                </div>
+                                Processing Payment...
+                              </>
+                            ) : processingSuccess === rental.id ? (
+                              <>
+                                <i className="bi bi-check-circle me-1"></i>
+                                Payment Success!
+                              </>
+                            ) : (
+                              "Accept"
+                            )}
                          </button>
                          <button
                            className="btn btn-sm btn-danger"
@@ -268,10 +366,31 @@ const MyListings: React.FC = () => {
                          >
                            Reject
                          </button>
+                          <button
+                            className="btn btn-sm btn-outline-danger"
+                            onClick={() => handleCancelClick(rental)}
+                          >
+                            Cancel
+                          </button>
                        </>
                      )}
-                      {(rental.status === "active" ||
-                        rental.status === "confirmed") && (
+                      {rental.status === "confirmed" && (
+                        <>
+                          <button
+                            className="btn btn-sm btn-success"
+                            onClick={() => handleCompleteClick(rental)}
+                          >
+                            Complete
+                          </button>
+                          <button
+                            className="btn btn-sm btn-outline-danger"
+                            onClick={() => handleCancelClick(rental)}
+                          >
+                            Cancel
+                          </button>
+                        </>
+                      )}
+                      {rental.status === "active" && (
                        <button
                          className="btn btn-sm btn-success"
                          onClick={() => handleCompleteClick(rental)}
@@ -440,6 +559,19 @@ const MyListings: React.FC = () => {
          onSuccess={handleReviewRenterSuccess}
        />
      )}
+
+      {/* Cancellation Modal */}
+      {rentalToCancel && (
+        <RentalCancellationModal
+          show={showCancelModal}
+          onHide={() => {
+            setShowCancelModal(false);
+            setRentalToCancel(null);
+          }}
+          rental={rentalToCancel}
+          onCancellationComplete={handleCancellationComplete}
+        />
+      )}
    </div>
  );
 };
--- a/frontend/src/pages/MyRentals.tsx
+++ b/frontend/src/pages/MyRentals.tsx
@@ -4,7 +4,7 @@ import { useAuth } from "../contexts/AuthContext";
 import { rentalAPI } from "../services/api";
 import { Rental } from "../types";
 import ReviewItemModal from "../components/ReviewModal";
-import ConfirmationModal from "../components/ConfirmationModal";
+import RentalCancellationModal from "../components/RentalCancellationModal";

 const MyRentals: React.FC = () => {
  // Helper function to format time
@@ -28,8 +28,7 @@ const MyRentals: React.FC = () => {
  const [showReviewModal, setShowReviewModal] = useState(false);
  const [selectedRental, setSelectedRental] = useState<Rental | null>(null);
  const [showCancelModal, setShowCancelModal] = useState(false);
-  const [rentalToCancel, setRentalToCancel] = useState<string | null>(null);
-  const [cancelling, setCancelling] = useState(false);
+  const [rentalToCancel, setRentalToCancel] = useState<Rental | null>(null);

  useEffect(() => {
    fetchRentals();
@@ -46,25 +45,20 @@ const MyRentals: React.FC = () => {
    }
  };

-  const handleCancelClick = (rentalId: string) => {
-    setRentalToCancel(rentalId);
+  const handleCancelClick = (rental: Rental) => {
+    setRentalToCancel(rental);
    setShowCancelModal(true);
  };

-  const confirmCancelRental = async () => {
-    if (!rentalToCancel) return;
-
-    setCancelling(true);
-    try {
-      await rentalAPI.updateRentalStatus(rentalToCancel, "cancelled");
-      fetchRentals();
+  const handleCancellationComplete = (updatedRental: Rental) => {
+    // Update the rental in the list
+    setRentals(prev => 
+      prev.map(rental => 
+        rental.id === updatedRental.id ? updatedRental : rental
+      )
+    );
    setShowCancelModal(false);
    setRentalToCancel(null);
-    } catch (err: any) {
-      alert("Failed to cancel rental");
-    } finally {
-      setCancelling(false);
-    }
  };

  const handleReviewClick = (rental: Rental) => {
@@ -161,8 +155,12 @@ const MyRentals: React.FC = () => {
                            : "bg-danger"
                        }`}
                      >
-                        {rental.status.charAt(0).toUpperCase() +
-                          rental.status.slice(1)}
+                        {rental.status === "pending" 
+                          ? "Awaiting Owner Approval"
+                          : rental.status === "confirmed"
+                          ? "Confirmed & Paid"
+                          : rental.status.charAt(0).toUpperCase() + rental.status.slice(1)
+                        }
                      </span>
                    </div>

@@ -187,6 +185,14 @@ const MyRentals: React.FC = () => {
                      </p>
                    )}

+                    {rental.status === "pending" && (
+                      <div className="alert alert-info mt-2 mb-2 p-2 small">
+                        <i className="bi bi-clock me-2"></i>
+                        <strong>Awaiting Approval:</strong> Your payment method is saved. 
+                        You'll only be charged if the owner approves your request.
+                      </div>
+                    )}
+
                    {rental.renterPrivateMessage &&
                      rental.renterReviewVisible && (
                        <div className="alert alert-info mt-2 mb-2 p-2 small">
@@ -199,19 +205,39 @@ const MyRentals: React.FC = () => {
                        </div>
                      )}

-                    {rental.status === "cancelled" &&
-                      rental.rejectionReason && (
+                    {rental.status === "cancelled" && (
+                      <>
+                        {rental.rejectionReason && (
                          <div className="alert alert-warning mt-2 mb-1 p-2 small">
                            <strong>Rejection reason:</strong>{" "}
                            {rental.rejectionReason}
                          </div>
                        )}
+                        {rental.refundAmount !== undefined && (
+                          <div className="alert alert-info mt-2 mb-1 p-2 small">
+                            <strong>
+                              <i className="bi bi-arrow-return-left me-1"></i>
+                              Refund:
+                            </strong>{" "}
+                            ${rental.refundAmount?.toFixed(2) || "0.00"}
+                            {rental.refundProcessedAt && (
+                              <small className="d-block text-muted mt-1">
+                                Processed: {new Date(rental.refundProcessedAt).toLocaleDateString()}
+                              </small>
+                            )}
+                            {rental.refundReason && (
+                              <small className="d-block mt-1">{rental.refundReason}</small>
+                            )}
+                          </div>
+                        )}
+                      </>
+                    )}

                    <div className="d-flex gap-2 mt-3">
-                      {rental.status === "pending" && (
+                      {(rental.status === "pending" || rental.status === "confirmed") && (
                        <button
                          className="btn btn-sm btn-danger"
-                          onClick={() => handleCancelClick(rental.id)}
+                          onClick={() => handleCancelClick(rental)}
                        >
                          Cancel
                        </button>
@@ -269,20 +295,17 @@ const MyRentals: React.FC = () => {
        />
      )}

-      <ConfirmationModal
+      {rentalToCancel && (
+        <RentalCancellationModal
          show={showCancelModal}
-        onClose={() => {
+          onHide={() => {
            setShowCancelModal(false);
            setRentalToCancel(null);
          }}
-        onConfirm={confirmCancelRental}
-        title="Cancel Rental"
-        message="Are you sure you want to cancel this rental? This action cannot be undone."
-        confirmText="Yes, Cancel Rental"
-        cancelText="Keep Rental"
-        confirmButtonClass="btn-danger"
-        loading={cancelling}
+          rental={rentalToCancel}
+          onCancellationComplete={handleCancellationComplete}
        />
+      )}
    </div>
  );
 };
--- a/frontend/src/pages/RentItem.tsx
+++ b/frontend/src/pages/RentItem.tsx
@@ -1,9 +1,9 @@
-import React, { useState, useEffect } from "react";
+import React, { useState, useEffect, useRef } from "react";
 import { useParams, useNavigate, useSearchParams } from "react-router-dom";
 import { Item } from "../types";
 import { useAuth } from "../contexts/AuthContext";
 import { itemAPI, rentalAPI } from "../services/api";
-import StripePaymentForm from "../components/StripePaymentForm";
+import EmbeddedStripeCheckout from "../components/EmbeddedStripeCheckout";

 const RentItem: React.FC = () => {
  const { id } = useParams<{ id: string }>();
@@ -27,6 +27,7 @@ const RentItem: React.FC = () => {
  });

  const [totalCost, setTotalCost] = useState(0);
+  const [completed, setCompleted] = useState(false);

  const convertToUTC = (dateString: string, timeString: string): string => {
    if (!dateString || !timeString) {
@@ -117,8 +118,29 @@ const RentItem: React.FC = () => {
    }
  };

-  const handlePaymentSuccess = () => {
-    console.log("Stripe checkout session created successfully");
+  const getRentalData = () => {
+    try {
+      const startDateTime = convertToUTC(
+        manualSelection.startDate,
+        manualSelection.startTime
+      );
+      const endDateTime = convertToUTC(
+        manualSelection.endDate,
+        manualSelection.endTime
+      );
+
+      return {
+        itemId: id,
+        startDateTime,
+        endDateTime,
+        deliveryMethod: formData.deliveryMethod,
+        deliveryAddress: formData.deliveryAddress,
+        totalAmount: totalCost,
+      };
+    } catch (error: any) {
+      setError(error.message);
+      return null;
+    }
  };

  const handleChange = (
@@ -173,43 +195,70 @@ const RentItem: React.FC = () => {

          <div className="row">
            <div className="col-md-8">
+              {completed ? (
                <div className="card mb-4">
-                <div className="card-body">
-                  <h5 className="card-title">Payment</h5>
-
-                  <StripePaymentForm
-                    total={totalCost}
-                    itemName={item.name}
-                    rentalData={{
-                      itemId: item.id,
-                      startDateTime: convertToUTC(
-                        manualSelection.startDate,
-                        manualSelection.startTime
-                      ),
-                      endDateTime: convertToUTC(
-                        manualSelection.endDate,
-                        manualSelection.endTime
-                      ),
-                      totalAmount: totalCost,
-                      deliveryMethod: "pickup",
-                    }}
-                    onSuccess={handlePaymentSuccess}
-                    onError={(error) => setError(error)}
-                    disabled={
-                      !manualSelection.startDate || !manualSelection.endDate
-                    }
-                  />
-
+                  <div className="card-body text-center">
+                    <div className="alert alert-success">
+                      <i className="bi bi-check-circle-fill display-1 text-success mb-3"></i>
+                      <h3>Rental Request Sent!</h3>
+                      <p className="mb-3">
+                        Your rental request has been submitted to the owner. 
+                        You'll only be charged if they approve your request.
+                      </p>
+                      <div className="d-grid gap-2 d-md-block">
                        <button
-                    type="button"
-                    className="btn btn-secondary mt-2"
-                    onClick={() => navigate(`/items/${id}`)}
+                          className="btn btn-primary me-2"
+                          onClick={() => navigate("/my-rentals")}
                        >
-                    Cancel
+                          View My Rentals
+                        </button>
+                        <button
+                          className="btn btn-outline-secondary"
+                          onClick={() => navigate("/")}
+                        >
+                          Continue Browsing
                        </button>
                      </div>
                    </div>
                  </div>
+                </div>
+              ) : (
+                <div className="card mb-4">
+                  <div className="card-body">
+                    <h5 className="card-title">Complete Your Rental Request</h5>
+                    <p className="text-muted small mb-3">
+                      Add your payment method to complete your rental request. 
+                      You'll only be charged if the owner approves your request.
+                    </p>
+
+                    {!manualSelection.startDate || !manualSelection.endDate || !getRentalData() ? (
+                      <div className="alert alert-info">
+                        <i className="bi bi-info-circle me-2"></i>
+                        Please complete the rental dates and details above to proceed with payment setup.
+                      </div>
+                    ) : (
+                      <>
+                        <EmbeddedStripeCheckout
+                          rentalData={getRentalData()}
+                          onSuccess={() => setCompleted(true)}
+                          onError={(error) => setError(error)}
+                        />
+                        
+                        <div className="text-center mt-3">
+                          <button
+                            type="button"
+                            className="btn btn-outline-secondary"
+                            onClick={() => navigate(`/items/${id}`)}
+                          >
+                            Cancel Request
+                          </button>
+                        </div>
+                      </>
+                    )}
+                  </div>
+                </div>
+              )}
+            </div>

            <div className="col-md-4">
              <div className="card">
--- a/frontend/src/services/api.ts
+++ b/frontend/src/services/api.ts
@@ -84,6 +84,9 @@ export const rentalAPI = {
    api.post(`/rentals/${id}/review-renter`, data),
  reviewItem: (id: string, data: any) =>
    api.post(`/rentals/${id}/review-item`, data),
+  getRefundPreview: (id: string) => api.get(`/rentals/${id}/refund-preview`),
+  cancelRental: (id: string, reason?: string) =>
+    api.post(`/rentals/${id}/cancel`, { reason }),
 };

 export const messageAPI = {
@@ -110,18 +113,15 @@ export const itemRequestAPI = {
 };

 export const stripeAPI = {
-  createCheckoutSession: (data: {
-    itemName: string;
-    total: number;
-    return_url: string;
-    rentalData?: any;
-  }) => api.post("/stripe/create-checkout-session", data),
  getCheckoutSession: (sessionId: string) =>
    api.get(`/stripe/checkout-session/${sessionId}`),
  createConnectedAccount: () => api.post("/stripe/accounts"),
  createAccountLink: (data: { refreshUrl: string; returnUrl: string }) =>
    api.post("/stripe/account-links", data),
  getAccountStatus: () => api.get("/stripe/account-status"),
+  createSetupCheckoutSession: (data: {
+    rentalData?: any;
+  }) => api.post("/stripe/create-setup-checkout-session", data),
 };

 export default api;
--- a/frontend/src/types/index.ts
+++ b/frontend/src/types/index.ts
@@ -106,12 +106,19 @@ export interface Rental {
  endDateTime: string;
  totalAmount: number;
  // Fee tracking fields
-  baseRentalAmount?: number;
  platformFee?: number;
-  processingFee?: number;
  payoutAmount?: number;
  status: "pending" | "confirmed" | "active" | "completed" | "cancelled";
  paymentStatus: "pending" | "paid" | "refunded";
+  // Refund tracking fields
+  refundAmount?: number;
+  refundProcessedAt?: string;
+  refundReason?: string;
+  stripeRefundId?: string;
+  cancelledBy?: "renter" | "owner";
+  cancelledAt?: string;
+  stripePaymentIntentId?: string;
+  stripePaymentMethodId?: string;
  // Payout status tracking
  payoutStatus?: "pending" | "processing" | "completed" | "failed";
  payoutProcessedAt?: string;
@@ -185,3 +192,12 @@ export interface ItemRequestResponse {
  createdAt: string;
  updatedAt: string;
 }
+
+export interface RefundPreview {
+  canCancel: boolean;
+  cancelledBy: "renter" | "owner";
+  refundAmount: number;
+  refundPercentage: number;
+  reason: string;
+  totalAmount: number;
+}