Return Fees & Deductions

overview this document explains how return fees and deductions are applied and displayed when issuing standard refunds in shopify it outlines how these fees are recorded on the order and how they affect the final refund amount how return fees are applied return fees and deductions are applied at the time the refund is issued in shopify when refundid’s return functionality is used a return shipping charge is created on the order all return related deductions are attached to this return shipping charge this includes both return shipping fees and return reason fees return fees are therefore recorded against the order in shopify as part of the return shipping charge recording of fees in shopify all return related fees must be recorded under the return shipping fee structure in shopify this means return shipping fees and return reason fees cannot be separated all deductions are grouped under the return shipping charge shopify does not support splitting these fees into separate line items this ensures the refund remains consistent with shopify’s native return and refund reporting return fees are also recorded in the notes of the order when return status is not used if shopify’s return status is not used return fees are deducted directly from the refund amount no separate fee or charge is recorded on the order the deduction is reflected only in the final refunded amount impact on the refund amount deductions are applied to the final refund total the refunded amount is calculated as original return value less any applicable return shipping fees less any return reason fees the customer receives the net amount after all deductions have been applied