This article will teach you about our refund policy, the fees associated with refunds, the difference between a chargeback and a refund, and how refunds are handled on split accounts.
When we get a refund request from a customer, we usually direct the request to your support contact so that you may handle it. The only time that we refund an order without consulting you is when a customer who has purchased with a credit card has contacted us about a fraudulent charge. In this case, the order is refunded to prevent a chargeback. Credit cards refunds can generally be done up to one year after an order, but PayPal has a 90 day refund limit. The refund fee is 3.5% of the order total.
Chargebacks are different than refunds. A chargeback is the return of funds to a consumer, forcibly initiated by the consumer's issuing bank. The customer signs an affidavit with their credit card provider claiming they did not make the purchase. The only way a merchant can dispute this claim is to provide trackable shipping to the customer's address. Since most orders are only digital, we typically cannot provide this information, and the issuing bank decides in favor of the customer.
Refunds with Split Accounts
In a situation where you have a split account, your partner takes a certain percentage of the sales. We often get asked what happens when a refund happens in this circumstance. To answer this question, we will use an example.
Let us say that the customer paid $100 for your product and that your partner gets a 70% split. $100 will go into your account, and then part of it (8.9% or 5.9% + $.95) comes out for the FastSpring fee. If the former, $8.90 comes out of your account, and then $63.77 (70% of $100 - $8.90) goes into the partner's account. If there is a full refund, the $63.77 is removed from the partner's account and put back into your account. The FastSpring fee of $8.90 is put back into your account. The $100 is returned to the customer, and there is a $3.50 fee assessed to your company as a return fee.
Refunding an Order
It takes under a minute to refund an order. You can perform three types of refunds:
- Full Return: refunds the entire order's purchase price
- Line Item Return: refunds the entire price of one or more products in an order
If you select a Line Item Return, check the box for any product that you want to refund. This is only an option when a customer purchases multiple products in one order.
- Partial Refund: refunds a portion of the amount of one or more products in an order, plus any applicable tax
If you select to refund a partial amount, enter in the amount to refund for each product in the order. This is most commonly used when customers notify you that they forgot to enter in a coupon code during the order process.
For more detailed information, see How do I refund an order?
We're Here to Help
If you need assistance with refunding an order, please open a support ticket.