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Template · Refund policy

Shopify Refund Policy Template (Free)

A refund policy is the money-mechanics counterpart to a return policy. Return policy answers "how do I send the product back"; refund policy answers "what triggers my refund, how do I get it, and in what form". This template gives you a complete refund policy with placeholders for your specifics — every section annotated so you understand what to customize. Pair it with the {RETURN_POLICY_LINK} for full coverage.

Last reviewed: May 12, 2026

When to use this template

Use this template alongside your return policy. Shopify's Settings → Policies → Refund policy is technically the field where this content goes, even though many merchants conflate it with return policy. If your store sells subscriptions, gift cards, digital goods, or has non-standard refund scenarios (partial refunds, store credit options), this template covers them in ways the return policy doesn't.

The full template

Copy the whole thing, then customize the {PLACEHOLDERS} with your store specifics. Each section is annotated below — read the annotations before publishing.

## Opening / scope

At {STORE_NAME}, refunds are processed under the following conditions. This refund policy works alongside our {RETURN_POLICY_LINK_TEXT} (which covers the return process itself) and applies to all orders placed on {STORE_URL}.

For questions about a specific refund, email us at {SUPPORT_EMAIL}.

## What qualifies for a refund

You're eligible for a refund in the following situations:

1. **Pre-shipment cancellation**: You cancel your order before it ships. {CANCELLATION_REFUND_TIMING — e.g., Full refund processed within {CANCELLATION_REFUND_DAYS} business days}.

2. **Returned item (within return window)**: You return an item in original condition within {RETURN_WINDOW_DAYS} days of delivery, following our {RETURN_POLICY_LINK_TEXT}. {REFUND_AMOUNT — e.g., Full refund minus any original shipping costs / Full refund including original shipping}.

3. **Damaged or defective on arrival**: The item arrived damaged, defective, or different from what you ordered. {DAMAGED_REFUND — e.g., Full refund including original shipping, plus we cover return shipping}.

4. **Lost in transit**: Your tracking shows the package wasn't delivered after a reasonable investigation window. {LOST_PACKAGE_REFUND — e.g., Full refund OR replacement at our cost, your choice}.

5. **Order error on our end**: We shipped the wrong item, wrong quantity, or wrong color/size. Full refund including all shipping costs.

## Refund method (where the money goes)

Refunds are issued to the original payment method used at checkout:

- **Credit/debit card**: Refunded to the same card. Typical statement appearance: {REFUND_DAYS — e.g., 5-10} business days, depending on your bank.
- **PayPal**: Refunded to your PayPal balance, typically within {PAYPAL_REFUND_DAYS — e.g., 2-3} business days.
- **Apple Pay / Google Pay / Shop Pay**: Refunded to the underlying payment method connected to the wallet.
- **Gift card**: Refunded to a new gift card OR original purchase payment method (your choice). Original purchaser's preference applies if the gift card was given as a gift.
- **Store credit**: If you chose store credit at the time of refund (instead of payment refund), it's applied to your account at {STORE_URL}/account and never expires.

## Refund timing

Refund processing happens in two windows:

**Window 1 — Our processing**: Once we approve a refund (either after receiving a returned item OR after cancellation/damage/error confirmation), we initiate the refund in Shopify within {OUR_PROCESSING_DAYS — e.g., 2} business days.

**Window 2 — Bank/processor settlement**: After we initiate, the time until the money appears on your statement depends on your payment method (see above) and your bank's processing speed. Typically {TOTAL_VISIBLE_DAYS — e.g., 5-10} business days from our approval.

If more than {ESCALATION_DAYS — e.g., 14} business days have passed since we confirmed your refund and you don't see it, contact your bank or card issuer first — they may need to release the credit. If your bank confirms they haven't received the refund, email us at {SUPPORT_EMAIL} with your order number and we'll provide the Shopify refund transaction ID.

## Partial refunds

Partial refunds may apply in these cases:

- **Late returns** (after {RETURN_WINDOW_DAYS} days but within {LATE_RETURN_WINDOW — e.g., 60} days): {LATE_REFUND_AMOUNT — e.g., 50% refund / Store credit for full value / Not eligible}.
- **Returned in non-original condition** (used, washed, missing tags or packaging): {NON_ORIGINAL_REFUND — e.g., Up to 50% refund at our discretion based on resale value / Not eligible}.
- **Multi-item orders, partial return**: Refund issued for the returned items only. Original shipping cost is {SHIPPING_HANDLING_MULTI — e.g., refunded proportionally / not refunded since the order still shipped}.
- **Restocking fee items**: {RESTOCKING_FEE_REFUND — e.g., {RESTOCKING_PERCENT}% restocking fee deducted from the refund for {APPLICABLE_CATEGORIES — e.g., opened electronics, custom-printed items}}.

{PARTIAL_REFUND_NOTE — e.g., We try to be fair on partial-refund decisions and lean toward the buyer when the situation is ambiguous.}

## Non-refundable purchases

The following are not eligible for refunds under any condition:

- {NON_REFUNDABLE_LIST — e.g., Gift cards (Shopify policy + most jurisdictions); Custom or personalized items once production has begun; Digital downloads once delivered; Final-sale items marked as such at the time of purchase; Subscription orders past their renewal/cancellation cutoff date}.

If you believe an exception should apply to your situation (e.g., the digital download was corrupted and unusable), email us at {SUPPORT_EMAIL} with details. We review case-by-case but don't guarantee exceptions.

## Chargebacks and disputed transactions

If you have a problem with an order, please contact us first at {SUPPORT_EMAIL} before filing a chargeback with your bank. We can almost always resolve issues directly — refund, replace, or exchange — within our policy. Chargebacks add bank fees on both sides, take 30-90 days to resolve, and may result in your account being flagged with payment processors.

We respond to all chargebacks with documentation of the original transaction and our resolution attempts. {CHARGEBACK_OUTCOME_NOTE — e.g., We'll honor any legitimate refund claim regardless of whether it comes through chargeback or direct contact}.

## Questions

Questions about a refund? Email us at {SUPPORT_EMAIL} with your order number. We typically reply within {RESPONSE_TIME — e.g., 1 business day} and most refund questions resolve in a single back-and-forth.

Placeholder reference

Quick reference for every {TOKEN} in the template — what to fill in and the recommended default.

Token
What it is
Recommended default
{STORE_NAME}
Your brand name as in Shopify settings
Use exact case from Settings → Store details
{STORE_URL}
Your store's primary domain
yourdomain.com (without https://)
{SUPPORT_EMAIL}
Reachable contact email
Domain-matched (hello@yourdomain.com), not gmail.com — see /fixes/professional-email
{RETURN_POLICY_LINK_TEXT}
Link text + URL to your return policy
'return policy' linked to /policies/refund-policy or wherever your return doc lives
{RETURN_WINDOW_DAYS}
Standard return window in days
Must match your return policy exactly — drift causes disputes
{LATE_RETURN_WINDOW}
Extended return window for partial-refund eligibility
60 days is common; reflects 'we'll work with you but not at full refund'
{REFUND_DAYS}
Total time for refund to appear (your processing + bank settlement)
5-10 business days is standard for credit cards
{OUR_PROCESSING_DAYS}
How fast you initiate the refund in Shopify after approval
1-2 business days is achievable for most stores
{ESCALATION_DAYS}
When buyers should escalate if refund missing
14 business days covers the slowest bank settlement
{RESTOCKING_PERCENT}
Restocking fee percentage if applicable
15-25% is the standard range; only use for categories that lose resale value when opened
{NON_REFUNDABLE_LIST}
Specific non-refundable categories for your store
Be explicit. If you have zero non-refundables, delete the entire section.
{RESPONSE_TIME}
How fast you reply to refund support
1 business day for solo founders; match what you can deliver

Section-by-section guide

Opening / scope

At {STORE_NAME}, refunds are processed under the following conditions. This refund policy works alongside our {RETURN_POLICY_LINK_TEXT} (which covers the return process itself) and applies to all orders placed on {STORE_URL}.

For questions about a specific refund, email us at {SUPPORT_EMAIL}.

Open with the relationship between this policy and your return policy — buyers shouldn't have to figure out which document applies to their situation. State the store URL and contact email for clarity. Most Shopify stores have a single "Refund Policy" in Settings → Policies that combines both; if you split them, link clearly in both directions.

What qualifies for a refund

You're eligible for a refund in the following situations:

1. **Pre-shipment cancellation**: You cancel your order before it ships. {CANCELLATION_REFUND_TIMING — e.g., Full refund processed within {CANCELLATION_REFUND_DAYS} business days}.

2. **Returned item (within return window)**: You return an item in original condition within {RETURN_WINDOW_DAYS} days of delivery, following our {RETURN_POLICY_LINK_TEXT}. {REFUND_AMOUNT — e.g., Full refund minus any original shipping costs / Full refund including original shipping}.

3. **Damaged or defective on arrival**: The item arrived damaged, defective, or different from what you ordered. {DAMAGED_REFUND — e.g., Full refund including original shipping, plus we cover return shipping}.

4. **Lost in transit**: Your tracking shows the package wasn't delivered after a reasonable investigation window. {LOST_PACKAGE_REFUND — e.g., Full refund OR replacement at our cost, your choice}.

5. **Order error on our end**: We shipped the wrong item, wrong quantity, or wrong color/size. Full refund including all shipping costs.

Specify the qualifying conditions explicitly — vague refund policies generate disputes. The 5 scenarios above cover the common 95%. If your store has unusual scenarios (subscription refunds, partial-use refunds for services), add them here. Note the explicit difference between your responsibility (5 — your error) and the buyer's responsibility (2 — change of mind): the refund amount and shipping handling differ.

Refund method (where the money goes)

Refunds are issued to the original payment method used at checkout:

- **Credit/debit card**: Refunded to the same card. Typical statement appearance: {REFUND_DAYS — e.g., 5-10} business days, depending on your bank.
- **PayPal**: Refunded to your PayPal balance, typically within {PAYPAL_REFUND_DAYS — e.g., 2-3} business days.
- **Apple Pay / Google Pay / Shop Pay**: Refunded to the underlying payment method connected to the wallet.
- **Gift card**: Refunded to a new gift card OR original purchase payment method (your choice). Original purchaser's preference applies if the gift card was given as a gift.
- **Store credit**: If you chose store credit at the time of refund (instead of payment refund), it's applied to your account at {STORE_URL}/account and never expires.

Be explicit about each payment type. The gift card scenario is the messiest in practice — a refund to a gift card that was a gift creates dispute over who 'owns' the refund value. Default to refunding the original payment method when possible; only refund to a new gift card if explicitly requested. Store credit handling depends on your Shopify setup — Shopify's native store credit feature is limited; if you offer it, mention how customers see it on their account page.

Refund timing

Refund processing happens in two windows:

**Window 1 — Our processing**: Once we approve a refund (either after receiving a returned item OR after cancellation/damage/error confirmation), we initiate the refund in Shopify within {OUR_PROCESSING_DAYS — e.g., 2} business days.

**Window 2 — Bank/processor settlement**: After we initiate, the time until the money appears on your statement depends on your payment method (see above) and your bank's processing speed. Typically {TOTAL_VISIBLE_DAYS — e.g., 5-10} business days from our approval.

If more than {ESCALATION_DAYS — e.g., 14} business days have passed since we confirmed your refund and you don't see it, contact your bank or card issuer first — they may need to release the credit. If your bank confirms they haven't received the refund, email us at {SUPPORT_EMAIL} with your order number and we'll provide the Shopify refund transaction ID.

Separate the two windows — buyers conflate them and complain when the money 'hasn't arrived' even when you've already initiated. Naming both windows + the bank handoff is honest and saves support volume. The 'contact your bank first' line is critical — most missing-refund issues are bank delays, not your problem to solve. Providing the Shopify transaction ID gives the bank what it needs to find the credit.

Partial refunds

Partial refunds may apply in these cases:

- **Late returns** (after {RETURN_WINDOW_DAYS} days but within {LATE_RETURN_WINDOW — e.g., 60} days): {LATE_REFUND_AMOUNT — e.g., 50% refund / Store credit for full value / Not eligible}.
- **Returned in non-original condition** (used, washed, missing tags or packaging): {NON_ORIGINAL_REFUND — e.g., Up to 50% refund at our discretion based on resale value / Not eligible}.
- **Multi-item orders, partial return**: Refund issued for the returned items only. Original shipping cost is {SHIPPING_HANDLING_MULTI — e.g., refunded proportionally / not refunded since the order still shipped}.
- **Restocking fee items**: {RESTOCKING_FEE_REFUND — e.g., {RESTOCKING_PERCENT}% restocking fee deducted from the refund for {APPLICABLE_CATEGORIES — e.g., opened electronics, custom-printed items}}.

{PARTIAL_REFUND_NOTE — e.g., We try to be fair on partial-refund decisions and lean toward the buyer when the situation is ambiguous.}

Partial refunds are the most-disputed area of refund policies. Be explicit about the scenarios that trigger them and the percentages. The most-merchant-friendly position is the most-buyer-hostile: 'no refunds after 30 days, no restocking fee transparency, items must be unopened.' Most successful Shopify stores find a middle ground — late returns get store credit, lightly-used returns get partial refund. State your position; buyers respect clarity more than they punish strictness.

Non-refundable purchases

The following are not eligible for refunds under any condition:

- {NON_REFUNDABLE_LIST — e.g., Gift cards (Shopify policy + most jurisdictions); Custom or personalized items once production has begun; Digital downloads once delivered; Final-sale items marked as such at the time of purchase; Subscription orders past their renewal/cancellation cutoff date}.

If you believe an exception should apply to your situation (e.g., the digital download was corrupted and unusable), email us at {SUPPORT_EMAIL} with details. We review case-by-case but don't guarantee exceptions.

List your specific non-refundables — vague 'some items may not be refundable' is the opposite of trust-building. Gift cards are non-refundable in most jurisdictions for legal reasons (anti-money-laundering rules). Digital downloads after delivery is standard. Custom/personalized items vary — clarify whether 'production started' or 'shipped' is your cutoff. If your store has zero non-refundables, delete this section entirely.

Chargebacks and disputed transactions

If you have a problem with an order, please contact us first at {SUPPORT_EMAIL} before filing a chargeback with your bank. We can almost always resolve issues directly — refund, replace, or exchange — within our policy. Chargebacks add bank fees on both sides, take 30-90 days to resolve, and may result in your account being flagged with payment processors.

We respond to all chargebacks with documentation of the original transaction and our resolution attempts. {CHARGEBACK_OUTCOME_NOTE — e.g., We'll honor any legitimate refund claim regardless of whether it comes through chargeback or direct contact}.

This section is for legal-protective framing as much as customer service. State the 'contact us first' preference clearly but don't threaten — buyers who feel cornered file chargebacks anyway. The 'we respond with documentation' line signals you take chargebacks seriously without being adversarial. Honoring legitimate claims regardless of channel is the most-buyer-friendly stance and reduces overall chargeback rate over time.

Questions

Questions about a refund? Email us at {SUPPORT_EMAIL} with your order number. We typically reply within {RESPONSE_TIME — e.g., 1 business day} and most refund questions resolve in a single back-and-forth.

Close warm. Match the response-time promise to what you actually deliver. The 'most resolve in a single back-and-forth' line reassures buyers that the process won't be drawn out — a common worry with refund requests.

Common mistakes

  • Conflating refund policy with return policy. They overlap but cover different things — refund = money mechanics, return = product mechanics. Either combine them clearly in one document OR write them as complementary pages that cross-link.
  • Not stating who pays for return shipping vs. who pays for original shipping refund. Most merchant disputes happen here — make it explicit.
  • Vague partial-refund rules ('we'll consider partial refunds'). Buyers see this as 'they'll lowball me.' State the actual percentages and the situations that trigger them.
  • Charging restocking fees without disclosing them on the product page. The refund policy is too late to learn about a 25% deduction. Disclose at the point of purchase.
  • Promising refunds to a credit card other than the original payment method. Most payment processors prohibit cross-card refunds for fraud reasons. Always refund to the original method unless the original is genuinely unusable.
  • Not mentioning chargebacks at all. Without a chargeback section, buyers default to filing chargebacks instead of contacting you. Even a one-line 'contact us first' note materially reduces dispute volume.
  • Refund timing promises that contradict bank reality ('refund within 24 hours'). Even if YOU initiate within 24 hours, the bank takes days to settle. Promise the realistic visible-on-statement window, not your internal processing time.

Legal disclaimer

This template is provided as a starting point for Shopify merchants and is not legal advice. Refund policies are subject to consumer protection laws that vary significantly by jurisdiction — the US FTC's Mail Order Rule, the EU Consumer Rights Directive (which mandates a 14-day right to cancel for most online sales), and UK/Canada/Australia equivalents all have specific requirements that may override stricter merchant policies. Gift card refundability is regulated separately under anti-money-laundering rules in many jurisdictions. Chargeback responses have specific documentation requirements under card-network rules (Visa, Mastercard, Amex). Before publishing as your final policy, review with a lawyer licensed in your jurisdiction. StrangerProof and Mairis Lab make no warranty about the legal sufficiency of this template for any specific store or situation.

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