Refunds

kkrafts58

I am getting ready to open a gift shop. The mounds of paperwork can , at times, be overwhelming. As I was talking to the representative of my merchant account, she asked me how will I handle refunds? This is something I really haven`t thought about. She suggested store credit or exchange only. Any ideas on this? And should I have a sign posted that states my refund policy? Also, since I am going to be accepting debit and credit cards, do I need to have my privacy policy posted next to the pin pad?

joelblakley

There`s two ways to look at it.  You can only offer store credit or exhanges.  How do you feel when you are told you can`t get a refund on the product?  Does it make you want to frequent the merchant?  Probably not. 
 
I suggest taking the high road.  If a customer needs a refund or exchange, you have the unique opportunity to show that customer how valuable they are to you.  By offering a hassle free refund, you get the chance to earn a long term relationship with them. 
 
It is more expensive, but probably less expensive than having to earn a new customer to replace the one you just lost. 

minimegeology

I would offer money back.  I purchased something at a high end children`s boutique for my son`s baptism and it didn`t fit.  They would only give me store credit which really made me mad.  I had never shopped there before and their refusal to provide a money back refund guaranteed that I would never return after I used the store credit.
 
 

sddreamweavers

I am getting ready to open a gift shop. The mounds of paperwork can , at times, be overwhelming. As I was talking to the representative of my merchant account, she asked me how will I handle refunds? This is something I really haven`t thought about. She suggested store credit or exchange only. Any ideas on this? And should I have a sign posted that states my refund policy? Also, since I am going to be accepting debit and credit cards, do I need to have my privacy policy posted next to the pin pad?


One thing to take into consideration is how much your credit card processing service will charge you for refunds.  Depending on the processing company they can really hurt you with the fees they charge for credit card refunds.  You may want to factor in that fee when making your final decision on what your policy will be.