Steam will now offer refunds on its digital games, as long as you meet certain parameters and aren't trying to exploit the system.

As of today, Steam will let you get a full refund on any game you get, regardless of the reason, just as long as it has been less than 14 hours since you bought it and you spent less than two hours playing the game. Valve has announced this change in policy on its official website. We should note that you can try to request a refund on any Steam purchase no matter what the reason is, even if you simply played the game and didn't like it. Just as long as you go to Valve's help site, you'll be able to get a refund in less than seven days from when you first made your claim. While Steam should be able to do a refund through whatever online method you paid for the game, if it's unable to (in the off chance of an expired credit card or something of that sort), the refund will be credited back to you in your Steam Wallet.

Here are Steam's policies on refunding downloadable content, in-game purchases and bundles:

DLC purchased from the Steam store is refundable within fourteen days of purchase, and if the underlying title has been played for less than two hours since the DLC was purchased, so long as the DLC has not been consumed, modified or transferred. Please note that in some cases, Steam will be unable to give refunds for some third party DLC (for example, if the DLC irreversibly levels up a game character). These exceptions will be clearly marked as nonrefundable on the Store page prior to purchase.

Steam will offer refund for in-game purchases within any Valve-developed games within forty-eight hours of purchase, so long as the in-game item has not been consumed, modified or transferred. Third-party developers will have the option to enable refunds for in-game items on these terms. Steam will tell you at the time of purchase if the game developer has opted to offer refunds on the in-game item you are buying. Otherwise, in-game purchases in non-Valve games are not refundable through Steam.

You can receive a full refund for any bundle purchased on the Steam Store, so long as none of the items in the bundle have been transferred, and if the combined usage time for all items in the bundle is less than two hours. If a bundle includes an in-game item or DLC that is not refundable, Steam will tell you if the whole bundle is refundable during check-out.

Unfortunately, Valve won't be able to refund movies or gifts purchased on Steam (shame on you). Of course, Valve's help desk will be keeping track of reimbursements, so if it looks like you're abusing the refund system, don't be surprised if you stop getting your money back. Valve notes that it's not considered abuse to get a refund on a game that was purchased just before a sale and immediately re-purchased for a lower price. Bravo Valve, bravo.