What are the rules for refunds after returns?

Written by Jolien Pastoors on November 02, 2024

According to research by the Authority Consumer and Market (ACM), 85% of fashion web stores do not inform consumers correctly about the refund period. That is a hefty percentage. Also at ValuedShops we often see ignorance at webshops. That is why this blog clarifies within which period webshops must refund a return.

The law

The law is very clear about when a refund is due. Namely "at the latest within fourteen days after the day of receipt of the declaration of dissolution". The law states that you must refund within 14 days after a consumer has indicated a desire to return, NOT 14 days after you actually receive the product back.

Product not received back yet?

You may be thinking, but what if I haven't received the product back yet? The law is clear about that too. You only have to pay back after the consumer has proven that he has returned the product or after you have received the product. However, the deadline of 14 days after registration still applies. It can happen that on the day you receive the return package you already have to refund the customer.

A practical example

A customer orders a product from you on June 29 for 100.00 + 5.95 for shipping. The total amount paid is 105.95. He receives the ordered product July 1. On July 14, the customer indicates that he wants to return the product. This is within the statutory period of 14 days. The customer actually returns the product on July 24 and pays the shipping costs to you. The product is received by you on July 25. You must then return the total order amount of 105.95 to the customer no later than July 28.

Method of reimbursement

In what way should you refund the customer? The law is clear on that too. You must use the same refund method the consumer paid with. If the consumer paid with Paypal, then you must also do the refund with Paypal. If the consumer paid by bank transfer, you must refund the amount. Only if you agree with the consumer on another refund method, then this is also allowed. Refunding with a gift certificate or voucher is not allowed. This is only allowed if the customer also initially used a gift card as a payment method.

What amount to refund?

What costs do you have to refund? With a complete return you pay back all costs including any costs incurred for the return of the product. The consumer pays for the return itself (but you have to inform the consumer about this before purchasing). Only when the consumer has chosen a more expensive shipping method (e.g. cash on delivery) may you deduct these costs. However, you may not deduct standard shipping costs from the refundable amount. If only part of the order is returned, you do not have to pay the return shipping costs.

Inform

In all cases, you must inform consumers clearly and in advance about these rules. Also clearly state that you will refund the entire order amount including shipping costs in case of a full return. Explain clearly how you deal with returns. Do this not only in the terms and conditions, but also outside of them. This is not only mandatory, it will also improve the conversion of your online store. See also our sample texts.

Dutch law clearly states within which period you have to refund

Legal texts

We often see discussions about what is and what is not allowed. In some cases the law has a gray area, in other cases the law is very clear. Legal texts may be a bit dry and formally written, but with a little effort they are easy to read by yourself. See below, for example, the provisions around repayment on which we base this blog.

Civil Code 6 Article 230r

- After dissolution of the contract in accordance with Article 230o , the trader shall reimburse all payments received from the consumer, including delivery costs, without delay but at the latest within fourteen days from the day of receipt of the declaration of dissolution.

- The trader shall perform the obligation referred to in paragraph 1 using the same means of payment as was used by the consumer to pay for the obligations incumbent on the consumer prior to the rescission, unless the consumer has expressly agreed to a different means of payment and on the understanding that the consumer may not incur any costs as a result.

- Notwithstanding the provisions of paragraph 1, the trader is not obliged to reimburse the additional costs if the consumer has expressly chosen a method of standard delivery other than the least expensive method offered by the trader.

- Unless the trader has offered to collect the goods delivered on the basis of the terminated contract himself, the consumer may only claim performance of the obligation referred to in paragraph 1 after the trader has received the goods or the consumer has proven that he has returned the goods, whichever comes first.