How Shipping Is Charged to Customers

outline when return shipping is charged, it is reconciled in two distinct ways depending on the resolution selected this structure ensures accurate reporting, simplified reconciliation, and consistent recovery of return shipping costs refunds (instant & standard) for refunds (instant or standard), the return shipping fee is deducted directly from the customer’s refund amount the refund issued = return value – return shipping fee this provides a frictionless experience for the customer while giving the retailer full visibility into fee deductions within refundid’s reporting example if the return value is $100 and the return label is $10, the customer refund will be $90 credits return shipping fees for credit resolutions are also deducted from the issued credit the credit issued = return value – return shipping fee example if the return value is $100 and the return label is $10, the customer will receive $90 in store credit if you offer a percentage based bonus credit, the bonus is calculated on the net value after the shipping fee has been deducted exchanges exchanges require an alternative flow, as they do not generate a monetary refund or credit customers pay the return shipping fee at the time of lodging their exchange, using a credit or debit card retailers receive the return shipping fee upon approval of the return if the return is cancelled or declined, the charge is automatically refunded to the customer’s original payment method this ensures shipping costs are collected consistently, even where no refund/credit transaction exists instant exchanges instant exchanges combine elements of both exchanges and instant refunds customers pay any additional shipping charges upfront via card during the return submission on settlement, the merchant is charged the return amount less the return shipping fee , aligned with the instant refund process this provides consistency in financial reconciliation across all return outcomes