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kkrafts58

posts: 188

Jan 25, 2008 6:12 PM ET    Quote  Report Abuse
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I am getting ready to open a gift shop. The mounds of paperwork can , at times, be overwhelming. As I was talking to the representative of my merchant account, she asked me how will I handle refunds? This is something I really haven`t thought about. She suggested store credit or exchange only. Any ideas on this? And should I have a sign posted that states my refund policy? Also, since I am going to be accepting debit and credit cards, do I need to have my privacy policy posted next to the pin pad?

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kkrafts
"Treat every day as a new adventure"
DoorMat

posts: 289

Jan 25, 2008 6:52 PM ET    Quote  Report Abuse
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Unless you are selling custom items or if something comes back in unsellable condition, then I would offer a full money back refund....
CraigL

posts: 9051

Jan 26, 2008 2:41 PM ET    Quote  Report Abuse
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What do you expect in terms of a refund, when you buy something from a gift shop that doesn`t work, is broken, you don`t like, or that you find out is a duplicate of someone else`s gift?
joelblakley

posts: 3

Feb 14, 2008 6:15 PM ET    Quote  Report Abuse
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There`s two ways to look at it.  You can only offer store credit or exhanges.  How do you feel when you are told you can`t get a refund on the product?  Does it make you want to frequent the merchant?  Probably not. 
 
I suggest taking the high road.  If a customer needs a refund or exchange, you have the unique opportunity to show that customer how valuable they are to you.  By offering a hassle free refund, you get the chance to earn a long term relationship with them. 
 
It is more expensive, but probably less expensive than having to earn a new customer to replace the one you just lost. 


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Joel Blakley
Chief Strategy Office and Partner
Business Credit Services
www.bcscredit.com
minimegeology

posts: 143

Jun 06, 2008 9:54 PM ET    Quote  Report Abuse
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I would offer money back.  I purchased something at a high end children`s boutique for my son`s baptism and it didn`t fit.  They would only give me store credit which really made me mad.  I had never shopped there before and their refusal to provide a money back refund guaranteed that I would never return after I used the store credit.
 
 


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Tracy Barnhart, Owner
Giverny, Inc. / Mini Me Geology
http://www.GivernyOnline.com
http://www.MiniMeGeology.com
sddreamweavers

posts: 260

Jun 14, 2008 12:33 AM ET    Quote  Report Abuse
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I am getting ready to open a gift shop. The mounds of paperwork can , at times, be overwhelming. As I was talking to the representative of my merchant account, she asked me how will I handle refunds? This is something I really haven`t thought about. She suggested store credit or exchange only. Any ideas on this? And should I have a sign posted that states my refund policy? Also, since I am going to be accepting debit and credit cards, do I need to have my privacy policy posted next to the pin pad?


One thing to take into consideration is how much your credit card processing service will charge you for refunds.  Depending on the processing company they can really hurt you with the fees they charge for credit card refunds.  You may want to factor in that fee when making your final decision on what your policy will be.


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Aaron Wood
CEO
San Diego Dream Weavers
http://www.sddreamweavers.com
awood@sddreamweavers.com

New and improved! Now with blogging goodness!
http://www.sddreamweavers.com/san-diego-seo-marketing-blog/
ScrapBizKim

posts: 369

Jun 17, 2008 7:35 PM ET    Quote  Report Abuse
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I`m with the refund folks!  While in college, I worked at a shoe store in a mall where the owner would ONLY give store credit.  The owner didn`t care if the shoes fell apart in the box on the way home, he would NOT give you anything but credit.  It was a dumb policy anyway but in a town where 75% of the residents were transient college students, it was really stupid. 
 
Consequently, he had STACKS of letters from the Better Business Bureau (back in the day before the internet and they were the only way to complain) that he usually tossed in the garbage each month.  One day a man who was graduating from the university and moving out of the area came in with a store credit certificate his wife had received and demanded his money back.  He created a scene that caused us to call security.  Every customer in the small store and half the people walking by saw what happened and probably made a mental note to never go into that shoe store again.  The owner was not in that day and when I called him, he refused to come in to handle it and refused to allow me to give the man his money.  I quit the next day. 
 
Don`t anger your customers.  They will tell their friends. 
 
And, make sure your policy is clearly posted.  I would give it a time limit of 30 days, though.  And require an original receipt.
 
~Kim
ScrapBiz
AMSPCS

posts: 64

Jul 11, 2008 10:05 PM ET    Quote  Report Abuse
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Sorry I found this so late, but I think I have a couple of worthwhile comments for you.

First of all, the poster who said your credit card processor would charge you for refunds was kind of right.  Actually, there are three different methods which you can often negotiate:

1.)  Gross processing--the industry standard.  The processor does NOT credit back discount fees for refunded merchandise.  For example, you do $10,000 gross but refund $2000, which results in $8000 net sales.  Your discount percentage is paid on the $10,000 Gross amount.

2.)  Net processing--can be negotiated.  Usually involves a higher discount rate, but well worth it if you anticpate doing lots of refunds (remember, the goal is to get the processing program that costs you the least amount of money, NOT the one with the lowest dicount rate.)  Using the same example as above,  your discount rate in this scenario would be computed on the $8000 net sales amount---you woulndn`t pay discount on the $2000 that you refunded.

3.)  This one is REALLY scummy, it`s called Gross/Gross processing, which sounds a lot better than highway robbery which is what it really is.  You know the guys who quote really really really low discount rate in the hopes you`ll be tricked into signing with them????....this is how they get away with it and rob you blind.  Using the above scenario, you would pay full discount on the original $10,000 gross amount, AND they`ll charge you full discount again on the $2000 in refunds you process, even though t hey`re refunds and not really sales. So in effect, you pay discount on $12,000 even though your sales were only $10,000 gross and $8000 net.  The rate is low, but the money out of  your pocket is through the roof...do you see the difference?

Here`s another issue rgarding the comment about posting your refund policy on a sign on the wall.  Per Visa/MC regulation, if you have a refund policy it MUST MUST MUST be clearly stated just below the signature line on the printed credit card receipt---that part of the receipt known as the footer.  You can have the sign on the wall, you can write your policy on your
written invoice, you can tattoo your policy to  your forehead.  But as far as Visa/MC/AMex/Discover are concerned, if it`s not clearly stated on the credit card receipt footer, it`s not enforceable and if you will 1000% absolutely lose the chargeback dispute if it comes to that. 

I never heard anything about posting a privacy policy by a pin pad.  Just make sure your pin pad is properly injected/encrypted.

Hope this helps.  When you are ready to open up your merchant account, I hope  you`ll give our website a view and consider our excellent programs.  And feel free to call or email with any questiions you might have.

Barry G
AMSPCS
amspcs@juno.com
1-877-689-1691
www.MerchantServices-help.com

katt33

posts: 484

Aug 04, 2008 7:29 PM ET    Quote  Report Abuse
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My policy would be (this is just for my biz) as follows:

Retail - full refund for unopened merchandise returned within 7 days of receiving it and 80% on merchandise opened and tried, or they can exchange the unopened merchandise for one of equal value.

Wholesale - full refund for unopened merchandise returned within 10 days of receipt of merchandise.


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