If you run an online store, you will know that cash on delivery is a popular option among customers. While it is true that the coronavirus health crisis has forced millions of people around the world to change their daily activities radically, online shopping has experienced a strong increase.
For the same reason, parcel services and eCommerce are trying to avoid, as far as possible, cash on delivery or any other type of cash payment to avoid contact and health risks. And while consumers have been sympathetic to this measure, it remains a key alternative for many customers and businesses.
However, it is important to differentiate it from a refund. That is the return of an amount of money to the people who have paid it out.
Let's take a look at how to handle this efficiently in online stores!
Simply put, it is the economic operation through which a person receives back the money they paid for an order. The refund is present in commercial agreements under a return policy or certain assumptions. For example: when the product is defective or any other error occurs.
However, it is not only used under these circumstances, but it may also become a habit in accounting matters. Here you can find two common situations to use a refund:
But how does it work?
Regardless of the type of payment you used for your purchase, the return process is usually the same for all orders. When choosing the cash-on-delivery option, the only difference is that the eCommerce needs your bank details to issue a refund. Once it receives them and the return is approved at the warehouse, you receive an email, call, or another type of contact to request the data. Finally, the bank processes the refund.
Ecommerce is usually required to offer a 14-day return period so that consumers have ample time. Here are some important things to consider in your return policy:
How are you handling the refund of your online orders?
The European regulation does not only affect banks, but also eCommerce and users. The aim is to regulate these two new players to ensure the security of electronic payments and promote the adaptation of banking services to new technologies.
However, PSD2 has two main focuses:
In terms of refunds, the EU regulation provides more rights, as it not only reduces our liability for fraud to 50 euros but also establishes the "right to an unconditional refund for direct debits". In other words, if an authorised payment does not show the amount in detail or the amount is higher than expected, the consumer will be entitled to have the payment service provider refund the money he has paid. Is everything clear so far?
Now that you know how refunds work and the latest developments brought about by the PSD2 regulation, we at PayXpert would like to give you 3 tips on managing the refund of your orders efficiently.
Take note of best practices that can help you manage your returns and avoid a high number of refunds!
Are you handling the refunds of your online orders correctly? Check it out and don't remain in doubt.