How do refunds work?

How do refunds work in ShopIQ?

Refunds are handled according to the rules and policies set by the merchant. A merchant can define refund-related rules for their website, and customers can initiate refund requests directly from the website where allowed by those rules. Once a refund request is raised, the merchant is responsible for reviewing the request and taking the required action. ShopIQ helps provide the software workflow, but the merchant remains responsible for refund decisions and actual refund processing.

Can customers initiate refunds from the website?

Yes. Customers can initiate refund requests directly from the merchant's website based on the refund rules set by the merchant. For example, a merchant may allow refund requests only within a certain number of days after delivery or only for specific product conditions. The exact refund experience depends on the merchant's configured policy and order workflow.

Who approves refund requests?

The merchant approves or rejects refund requests. Before approving a refund, the merchant should review:

• Order details
• Payment status
• Product delivered
• Refund reason
• Return eligibility
• Product condition
• Return window
• Merchant refund policy
• Customer communication
• Payment gateway status

The merchant should make refund decisions according to the published store policy and applicable law.

Does ShopIQ process refunds automatically?

ShopIQ does not process refunds on behalf of merchants. Refunds are usually processed through the merchant's connected payment gateway or another agreed payment method. The merchant should follow the refund process defined by the payment provider.

How are online payment refunds processed?

For online payments, refunds are generally handled through the connected payment gateway. For example, if the customer paid through Razorpay, PhonePe, Stripe, PayPal, or another supported payment gateway, the merchant may need to initiate the refund from that payment gateway account or connected workflow where available. Refund timelines, fees, failed refund handling, and settlement adjustments depend on the payment provider.

Can refunds be partial?

Partial refund support depends on the merchant's payment gateway, order workflow, and refund setup. If partial refunds are available, merchants should carefully confirm the refund amount, product items, taxes, shipping charges, and discount impact before processing.

Can shipping charges be refunded?

This depends on the merchant's refund policy. Some merchants may refund product value but not shipping charges. Others may refund the full amount depending on the reason for return or cancellation. The refund policy should clearly explain whether shipping charges are refundable.

Can coupons affect refund value?

Yes. Coupons and discounts can affect refund calculations. For example, if a customer used a discount coupon, the refundable amount may be based on the actual paid amount rather than the original product price. Merchants should review order value, discount value, taxes, and payment amount before processing refunds.

What should merchants include in a refund policy?

A refund policy should clearly explain:

• Who is eligible for a refund
• Refund request window
• Product condition requirements
• Non-refundable items
• Return shipping responsibility
• Refund processing timeline
• Refund method
• Partial refund rules
• Damaged product process
• Exchange options, if applicable
• Cancellation-related refund rules

Does refund handling consume AI credits?

No. Receiving refund requests, reviewing them manually, and processing refunds through a payment gateway do not consume AI credits. AI credits are consumed only if the merchant uses AI-powered workflows such as asking AI to summarize refund requests, draft customer replies, analyze refund patterns, or create policy content.

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