How to write a refund policy in six decisions (free template included)
Worked through for a Shopify fashion store, with UK, EU and US rules side by side
Published
How to write a refund policy: make six decisions, then write them down in words a customer can follow. Customers mostly want to know how long they have and when the money comes back. Your support team needs that plus the exceptions, so nobody's guessing on a Friday night.
We'll go through the six and apply them to an example fashion store, and then there's a refund policy template you can copy. If you want to refuse change-of-mind returns altogether, read our no refund policy guide first, because the UK and EU don't let you.
The six decisions#
- Return window. How many days after delivery a customer can send something back because they changed their mind. In the UK and EU the legal floor is 14 days from the day the goods arrive (UK regulation 30, EU Directive 2011/83 Article 9). The US has no floor.
- Faulty or damaged items. What the customer gets, and what proof you want from them first.
- Exceptions. What's final sale. In the UK and EU you can only exclude specific categories, such as personalised items, perishables and unsealed hygiene products (UK regulation 28, EU Article 16).
- Refund method. Original payment, store credit or exchange. A legal cancellation in the UK or EU goes back to the original payment method unless the customer agrees otherwise (UK regulation 34, EU Article 13).
- Who pays return postage. In the UK and EU, the customer pays for change-of-mind returns only if you said so before they bought (UK regulation 35, EU Article 14).
- How fast the refund arrives. The UK and EU both set a 14-day limit for cancellations. Say when you'll pay, in days.
Most stores get the first three right. In our automated October 2026 review of 90 UK and Irish Shopify stores (hand-checked on a sample, so the figures are approximate), 71 had a published refund policy. Of those, about 6 in 10 didn't say how fast the refund arrives and about 4 in 10 didn't say who pays return postage. Both gaps come back as support tickets.
A worked example: a Shopify fashion store#
Take an example store, which we'll call Marlow Street Clothing. It's invented, but it's typical of the stores we looked at: a Shopify shop selling women's clothing and jewellery to the UK and the EU, with a monogramming service on some knitwear. So, decision by decision.
The return window is 30 days from delivery. That's longer than the 14-day legal minimum, and fashion customers expect it. One window for everyone is easier to explain and easier for the support team to apply than separate UK and EU rules.
Faulty or damaged items get a free return label and a choice of refund or replacement. The store asks for a photo, mostly to tell the warehouse what to look for.
Exceptions are monogrammed items and pierced earrings, which ship in sealed packets. Both are on the legal lists. The store doesn't exclude sale items, because it can't for UK and EU customers within the 14 days anyway, and two different rules would just confuse people.
Refunds go to the original payment method. The returns page offers an exchange first (a different size or colour, shipped free), which keeps the revenue in the store when the problem is fit.
Return postage is the customer's to pay, unless the item's faulty or they're exchanging it. The policy says so up front, which is what makes that charge allowed in the UK and EU.
Refund timing is within 14 days of the customer saying they're returning something. The store may wait until the parcel arrives or the customer sends proof of postage. In practice it refunds within three working days of the parcel landing, and it says that too.
When a return needs tracking through the warehouse, the store issues an RMA number so the parcel can be matched to the order on arrival.
Refund policy template#
Fill in the square brackets and delete what doesn't apply. It's written to work for customers in the UK, the EU and the US, so you don't need a version per country.
Refund and returns policy
Changed your mind?
You can return most items within [30] days of the day you receive them for a full refund. To start a return, email [email] with your order number, or use [our returns page].
Exchanges
Want a different size or colour? Ask for an exchange and we'll send the new item free of charge.
Condition of returns
Please send items back unworn, with the tags on. If something comes back worn or damaged, we may reduce the refund to cover the value it's lost.
Return postage
You pay to send back items you've changed your mind about. If an item is faulty, damaged or wrong, we'll send you a free return label.
Your refund
We'll refund what you paid, including standard delivery, within 14 days of you telling us you're returning something. We may wait until the items reach us, or until you send proof of postage, before we pay. We usually refund within [3] working days of your parcel arriving. Refunds go back to your original payment method. If you chose a faster delivery option, we refund the cost of standard delivery only.
What we can't take back
Unless they're faulty, we can't accept returns of [personalised or monogrammed items] or [pierced earrings and other items in sealed hygiene packaging, once the seal is broken].
Faulty, damaged or wrong items
This policy doesn't affect your legal rights. If something arrives faulty, damaged or isn't what you ordered, email [email] with your order number and a photo, and we'll arrange a repair, replacement or refund in line with your legal rights.
Customers in the EU
You can also cancel using the "Withdraw from contract here" button on [your order page / our website] within 14 days of receiving your order.
Questions
Email [email]. We reply within [1] working day.
The EU section is there because of Directive 2023/2673. Since 19 June 2026, stores selling online to EU customers have had to offer a withdrawal function, labelled "withdraw from contract here" or something just as clear, for the whole withdrawal period. If you sell only in the US, delete it.
UK, EU and US refund rules compared#
| UK | EU | US | |
|---|---|---|---|
| Change-of-mind right | 14 days, no reason needed (CCR reg 29-30) | 14 days, no reason needed (CRD Art 9) | None in federal law for online sales (FTC) |
| Clock starts | The day the goods arrive | The day the goods arrive | Not applicable |
| If you don't tell customers | Right runs up to 12 months longer (reg 31) | Right runs up to 12 months longer (Art 10) | Several states, including California and New York, require a policy that limits refunds to be displayed conspicuously |
| Refund deadline | 14 days from getting goods back or proof of postage (reg 34) | 14 days from the withdrawal, can wait for goods or proof (Art 13) | No general rule. Unshipped orders need a prompt refund (16 CFR 435) |
| Return postage | Customer pays if told in advance (reg 35) | Customer pays if told in advance (Art 14) | Your choice |
| Faulty goods | 30 days to reject for a refund, then repair or replace (CRA s.22, s.24) | Seller liable for at least 2 years (2019/771 Art 10) | Implied warranty under state law (FTC) |
| New in 2026 | Nothing equivalent | Online withdrawal button since 19 June 2026 (2023/2673) | Nothing equivalent |
Want to see how other stores phrase these clauses? Our return policy examples page annotates ten of them, good and bad.
What happens after you publish it#
Most refund tickets are about one order, not the policy. Is it inside the window, and has the parcel actually arrived back yet? Someone has to look that up every time.
A policy page is the start. Hay.chat turns it into rules an AI agent follows: check the order, apply the window, draft the refund reply for approval.
Frequently asked questions
Sources#
- UK: Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, regulations 28, 30, 31, 34 and 35
- UK: Consumer Rights Act 2015, sections 22 and 24
- EU: Consumer Rights Directive 2011/83/EU, Articles 9, 10, 13, 14 and 16
- EU: Directive (EU) 2023/2673, new Article 11a (withdrawal function)
- EU: Sale of Goods Directive (EU) 2019/771, Article 10
- US: FTC, the Cooling-Off Rule; FTC, Businessperson's Guide to Federal Warranty Law; 16 CFR Part 435; California Civil Code section 1723
- Store data: our automated October 2026 review of 90 UK and Irish Shopify stores, hand-checked on a sample (71 had a published refund policy; figures are approximate)
Let an AI agent apply your refund policy
Hay.chat applies your policy when customers ask about returns. Try it free for 30 days, no credit card needed.