Refunds are an uncomfortable part of running an online store, but they can happen to anyone, and they’re one of the things that make or break customer trust.
Even the most perfectionist store owner can run into a hiccup in the buying process. That’s why, instead of obsessing over preventing it, it’s more productive to learn how to handle refunds assertively and with care. How you respond to one of these situations says a lot about your store.
That’s why you’ll find a ready-to-use Shopify refund policy template below that you can copy, paste, and customize in a few minutes, along with a quick guide on what to include and where to publish it.
Refund Policy vs. Return Policy: What’s the Difference?
These two terms get used interchangeably, but they cover different parts of the same process:
- A return policy covers whether a customer can return a physical item, the return window, condition requirements, and how to ship it back to you.
- A refund policy covers what happens to the customer’s money once a return (or another qualifying situation, such as a damaged item) has been approved, including eligibility, processing time, and how the refund is issued.
Most stores need both, and they usually reference each other rather than repeating the same information twice. Conceptually, they’re separate policies, but Shopify groups them on the same settings screen, so you’ll set both up in one visit. That’s why we’ll walk you through completing them together later in this guide.
If you haven’t set up your return policy yet, check out our Shopify return policy template guide.
Copy-Paste Shopify Refund Policy Template
Refund Policy
At [Store Name], customer satisfaction matters. This policy explains when and how refunds are issued.
Refund Eligibility
You may request a refund within [X] days of delivery. To be eligible, items must be unused, unopened, and in their original packaging, with proof of purchase. (Adjust these conditions based on your product type; apparel, electronics, and consumables often need different rules.)
Defective or damaged items qualify for a refund regardless of the conditions above. Change-of-mind refunds may be subject to stricter conditions at the store’s discretion.
Non-Refundable Items
The following items are not eligible for a refund: final-sale items, digital products, gift cards, personalized or custom items, and perishables. (Delete any category that doesn’t apply to your store.)
How to Request a Refund
- Contact us at [support email].
- Provide your order number and the reason for your request.
- Wait for confirmation — we’ll respond within [X] business days with next steps.
Refund Processing Time and Method
Once your refund is approved, it will be processed within [X] business days and issued to your original payment method. (If your store issues store credit instead of a cash refund, state that explicitly here — customers dislike being surprised by store credit.)
Damaged or Defective Items
If your item arrives damaged or defective, contact us at [support email] within [X] days of delivery. We’ll offer a replacement or a full refund — no return conditions apply in these cases.
Late or Missing Refunds
If you haven’t received your refund within the expected timeframe, first check your bank or card statement again, then contact your card issuer, as it may take some time to officially post. If you’ve done this and still have not received your refund, contact us at [support email].
Shipping Costs
Original shipping costs are non-refundable. (If you offer free return shipping or cover it under certain conditions, state that here — otherwise, point to your return policy for full return-shipping details.)
Contact Us
Questions about a refund? Reach out to us at [support email] or through [contact page link].
Disclaimer: This is a starting template, not legal advice. Review it with a legal professional before publishing to ensure it complies with your business and local regulations.
What to Include in a Shopify Refund Policy
Since refunds are a sensitive topic, it’s essential to be very clear about what these policies cover. Here are a few things you can’t leave out:
- Refund eligibility: Your time window to request a refund and the conditions an item must meet. Keep in mind that conditions vary a lot by product type.
- Non-refundable items: Call out anything you won’t refund, such as final-sale items, digital products, or gift cards.
- How to request a refund: A short, simple process: contact support, provide the order number, and state the reason.
- Refund processing time and method: How long it takes once approved, and whether it is returned to the original payment method or issued as store credit.
- Damaged or defective items: Treat these separately from standard refunds, since they usually don’t come with conditions attached.
- Late or missing refunds: A short troubleshooting clause that builds trust and reduces support tickets.
- Shipping costs: Clarify whether original shipping is refundable and who covers return shipping.
- Contact information: A support email or contact method for refund questions.
How to Add Your Refund Policy in Shopify
1. From your Shopify admin, go to Settings > Policies.
2. Scroll to the Refund policy section and paste your customized template.
Alternatively, you can click Create from template to use Shopify’s default template.
3. Click Save, and this automatically links the policy from your checkout page.
4. Add the policy link to your footer and main menu too: go to Content > Menus, open the menu you want to update, and add a menu item linking to your Refund Policy.
BuildYourStore takes care of this automatically. It generates a ready-to-sell Shopify store with pre-built policies included — just edit them to fit your business and you’re done.
Customizing the Template for Your Store
- Fill in every bracketed placeholder with your store’s real numbers before publishing.
- Decide upfront whether refunds go to the original payment method or as store credit, and state it clearly; don’t let customers find out at the time of refund.
- Delete any non-refundable category that doesn’t apply to your store.
- Keep the tone consistent with your brand voice, but don’t drop any of the core clauses above.
- Once you’re done, review your return and privacy policies as well, since customers often check all three before buying.
Frequently Asked Questions
Is a refund policy the same as a return policy?
No. A refund policy covers what happens with the customer’s money, when and how they get paid back. A return policy covers the physical item, the return window, the condition requirements, and how to ship it back. Most stores need both.
Do I need a refund policy on Shopify?
Yes, it sets clear expectations and reduces disputes and chargebacks tied to money-back requests.
What’s the difference between a refund policy and a return policy?
A return policy covers sending the item back; a refund policy covers what happens with the money once that return (or another qualifying case, like a damaged item) is approved.
Where do I add a refund policy in Shopify?
In your Shopify admin, under Settings > Policies (also shown as Settings > Legal in some accounts), look for the “Refund policy” section.
Can I use a free refund policy template?
Yes, the template above is free to copy and customize for your store.
What should a refund policy include?
Eligibility conditions, non-refundable items, how to request a refund, processing time, and how customers get their money back.
Conclusion
A clear refund policy protects both your business and your customers’ trust, and takes the guesswork out of one of the most uncomfortable moments in running a store.
Copy the template above, fill in your store’s specifics, publish it in your Shopify settings, and pair it with your return and privacy policies to have your policy pages fully covered before launch.
Remember, if you don’t have your Shopify store yet, you can build one quickly and efficiently with BuildYourStore! Just choose your niche and preferences, and get a ready-made virtual storefront with products already set up and ready to sell.
Looking to launch your first Shopify store? Check out these resources for practical tips and step-by-step guidance:
