So, you’ve just received a payment from a customer or client. However, they are now requesting a refund. Refund requests can be disheartening, especially if your business works with any of the largest credit card processors, but they inevitably occur from time to time.
Refunds are inevitable for every online business — while they can be frustrating, they are entirely normal. Though you obviously want to avoid giving out refunds as much as possible, pleasing every customer is nearly impossible.
However, how you react to refund requests has the capacity to define the development of your organization. If this happens to your business, do not enter a panic or dismiss the refund request.
In this article, we will walk you through the necessary steps to resolve any refund requests from customers.
Handle Communication Quickly
When a customer asks for a refund, the first step should be to act fast because the customer is already upset about the circumstance. You do not want them to stew in their anger for a long time, otherwise, they may begin to tell other folks about their unpleasant experience which is not favorable for your credibility.
If you are not sure how you are going to proceed straight away, at the very least, you need to acknowledge the customer’s request for a refund. Let them know you are working promptly on finding a solution and will return to them as fast as you can.
Investigate the Refund
Your next step should be to put on your detective hat and collect some information about the refund being requested. Look through your business documents and data to guarantee that the customer’s narrative adds up.
For instance, you will want to confirm the customer’s purchase date and any other information that may be pertinent to the refund process.
If you need to collect information from the customer, avoid being argumentative or suspicious or ask probing questions that could make the customer combative. Additionally, keep your eyes open for possible credit card fraud. Some customers will use refunds as a means to keep the product or service, as well as the cash, but this is a fraudulent act.
Consult Your Refund Policy
Every online business needs to have a complete and thorough refund policy placed on their website. In case you require your customers to sign contracts, then it should also be included in that document. Ideally, this policy should cover every instance of a refund.
Customers are not as likely to request a refund should they understand their problem falls outside your refund policy. In the same way, a refund policy also assures customers that your business has a plan of action if they are unsatisfied with your product or service.
If you are not sure how to answer and address the customer’s refund concern, review your refund policy to determine whether you already have the directing language.
It is essential to follow your refund policy because those are the terms under which the customer made their purchase.
Look for a Non-Refund Remedy
In a lot of instances, you might have the ability to address the customer’s problem in another way that does not involve refunding their money. This way, you can make the customer happy without sacrificing the income of your business. This is particularly useful if a customer’s problem is a mistake that was created by your company.
As an example, if a customer received damaged merchandise in the mail, you could simply send them a new product. If the customer was unhappy with the service you supplied, you can provide additional services free of charge. While this method may technically increase your prices, it’s a far better option than losing the sale entirely.
However, if the customer does not like your suggested solution, asking what they would like and then denying their request will further hamper their experience. If they don’t like your proposed solution, it is a much easier and wiser decision to refund their money simply.
Make a Reasonable Decision
Overall, care for your refunds on a case-by-case basis is vital. If the customer’s complaint falls within your refund policy, you will need to refund their money. However, if their claim falls outside of your refund policy, don’t hesitate to deny the refund.
It is generally a bad idea to suggest a complicated remedy that confuses the customer as to what they are actually getting back. When they don’t understand your answer, they will assume you are just trying to wiggle out of giving them their refund.
Rather than making the situation more complicated, it may be easier to refund the money to the customer simply.
Follow Up with Your Decision
Once you’ve determined how you will handle the customer’s refund request, your next step is to provide an answer to the customer with a transparent response and final decision. The easiest way to do so is to call or send an email that summarizes your choice.
If you decide not to refund their money, explain your reason in a clear, non-judgmental manner. If you will refund their request, apologize for the inconvenience they experienced, and let them know when and how they will get the refund — be sure to send the refund back straight away.
Review Your Refund Policy
You may not need to do this after each refund, especially if you’ve got a high volume of sales, but you should review your refund policy whenever a refund situation was not as cut-and-dry as you’d like.
The objective of the refund policy is to protect you and the customer, so it needs to be created in a manner that ensures both parties will have a positive experience. After refunding a customer’s request, evaluate whether the refund policy provides a reasonable solution to the circumstance and how you can modify the policy to provide for better results in the future.
Work with a Merchant Account Service You Can Trust
There are many reasons why a customer may request a refund, but the most essential thing that matters is how you respond to the request. By following the above steps, you can be sure that each refund request is handled with professionalism and care.
At High Risk Pay, we strive to help all of our customers handle the refund request process as quickly and seamlessly as possible and offer you the cheapest merchant account services.
By working with us, you can focus on building trust with your customers and continue providing them with products and services that they love. Contact High Risk Pay today to learn more about how we can help your business manage refunds!