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    2 Replies Latest reply on Dec 5, 2016 8:22 AM by moderator_mel

    Refunding Rules for Customer Purchases

    moderator_mel Tracker

      What’s your rule of thumb when refunding a customer purchase? Do you have a set policy or are you flexible with your refunds? How much do local laws and regulations affect your policy? Here are a few things to consider:


      Customers can expect a refund on their purchases if they:

      ·         purchased the item during a sale or at full price.

      ·         realized there were errors made in the creation of personalized items.

      ·         found their perishable items had spoiled, melted or wilted.

      ·         there were errors in printed documents, magazines, books.


      You don’t have to offer a refund to the customer if they:

      ·         knew the item was faulty upon purchase.

      ·         damaged the item themselves.

      ·         decided they no longer want the item.

      ·         have waited too long to return their purchase.


      You can ask a customer to provide proof of purchase. Also, keep in mind that the person asking for a refund must be the person that purchased the item. It is illegal to display a return policy that misleads your customers. I’d love to know what your thoughts are about this information. ~Moderator Mel


        • Re: Refunding Rules for Customer Purchases
          davidpaul Newbie

          Assuming some time has elapsed before your item develops a fault, you can still claim a repair or replacement, and although in theory it's the customer who gets to choose which, in practice the retailer gets to say whether the item is replaced or repaired.

          1 of 1 people found this helpful
            • Re: Refunding Rules for Customer Purchases
              moderator_mel Tracker

              Thank you for sharing that great information, davidpaul.

              I did a bit more digging on retail returns and found some necessary information on return fraud. Retailers lose, on average, $10 billion annually because of fraudulent returns. (National Retail Federation or NRF)


              Here are a few types of return fraud:


              ·         Price Switching: Changing the marked down price to the original price in hopes of receiving a higher refund.

              ·         Stolen Goods: Returning shoplifted items.

              ·         Employee Fraud: Company associates aiding customer theft by manipulating their returns.

              ·         Wardrobing: Returning purchased clothing or accessories after wearing them once.

              ·         Fraudulent Receipts: Making returns with an altered receipt to score a profit from found or stolen items.


              As long as there is sufficient evidence, patrons can be charged with theft and face jail time. Retailers may want to obtain the services of a consumer protection attorney.  ~Moderator Mel