Refund Policy

What Is a Return Policy?

A return policy outlines how, when, and under what conditions your customers can return purchased goods and services.

You can name your return policy in many different ways, such as:

Return and refund policy
Returns and exchange policy
Shipping and return Policy
Store Return Policy
A well-written return policy can help your business retain customers and increase sales. But overly restrictive or nonexistent policies tend to scare people away.

What Is a Refund Policy?

A refund policy is a document that outlines the rules for getting refunds for purchased goods and services. It often details the eligibility requirements for refunds, types of refunds given, the refund timeframe, and the return process.

Is There a Difference Between a Return Policy and Refund Policy?

Returns and refunds are technically two separate occurrences.

A return policy indicates rules and conditions about if, when, and for how long your customers can return a purchase and receive reimbursement. It includes information about how long your customer has to make the return and which items are included or excluded from the policy.

A refund policy states if and when your customers are entitled to receive reimbursement for a purchase and do not have to be contingent on a return. For example, if a customer received a faulty or damaged item, or if the order never arrives, your refund policy should stipulate if the customer is entitled to receive a refund.

What About Exchange Policies?

You also have the option to set up an exchange policy with your customers. Exchange policies outline if your customer can request store credit, a replacement item, or a new item of the same or lesser value instead of a refund.