Generate a professional refund and return policy for your Shopify, WooCommerce, or Etsy store in 60 seconds. Covers return windows, digital products, international orders, and more. 100% free, no signup.
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Select Shopify, WooCommerce, or Etsy and get platform-appropriate language that matches your store's checkout flow and customer expectations.
If you sell to EU customers, our generator automatically includes the mandatory 14-day statutory cooling-off period required by EU Consumer Rights Directive.
Toggle digital product no-refund clauses, personalized item exclusions, and defective item provisions — all the nuances that protect your business.
Everything you need to know about Refund Policies
Go deeper on this topic with our free guide.
It's not just about being nice to customers. Your payment processor and your bank account depend on it.
Most e-commerce businesses think of a refund policy as customer service documentation. It's that, sure. But it's also a financial protection mechanism, a legal requirement in many jurisdictions, and a requirement for keeping your payment processing accounts in good standing. A missing or bad refund policy can cost you in ways that have nothing to do with actual refunds.
Every chargeback costs you between $15 and $100 in fees depending on your payment processor. Stripe charges $15 per dispute. PayPal charges $20. But the bigger problem is your chargeback ratio. If your dispute rate exceeds 1% of transactions, Visa and Mastercard place you on a monitoring program. Exceed their thresholds long enough and your payment processing account gets terminated. A clear refund policy that customers can actually find and understand is one of the most effective ways to prevent chargebacks.
On the legal side, the EU's Consumer Rights Directive gives online shoppers an unconditional 14-day right of withdrawal on most purchases. You cannot contract out of this. If an EU customer asks for a refund within 14 days of receiving a physical product, you must give it, full stop. In the US, the FTC has rules about mail and telephone order merchandise that require you to ship within the time you advertised, notify customers of delays, and offer refunds when you can't fulfill. Many individual states also have their own minimum return requirements.
Then there are the platform requirements. Shopify Payments requires merchants to have a refund policy. PayPal's seller protection program requires one. If you want to run ads on Google Shopping, your store needs a visible return policy. Amazon requires it for third-party sellers. And when customers can't find your refund policy, their first instinct isn't to email you. It's to call their bank and file a dispute. Every chargeback you prevent with a clear, findable refund policy is $15 to $100 saved.
A good refund policy actually increases conversion rates. Studies by the Wharton School and several e-commerce analytics firms consistently show that a clear, generous return policy increases purchase confidence, especially for first-time customers. Free returns and long windows correlate with higher average order values. Being upfront about what happens if something goes wrong makes people more willing to risk buying in the first place.
Any e-commerce store, SaaS product, digital download seller, or service provider who accepts payment online. If you take money, you need a refund policy.
Higher chargeback rates, payment processor account risk, EU consumer law violations, lost Google Shopping eligibility, and customers who can't find your policy and file disputes instead of emailing you.
Fewer chargebacks, higher conversion rates, payment processor compliance, and customers who trust you enough to complete their first purchase.
Every clause your store needs, from eligibility windows to non-refundable items.
Your return window (30, 60, or 90 days from delivery), clearly stated so customers know exactly how long they have to initiate a return.
Items must be unused, in original packaging, with tags attached (where applicable). Clear condition requirements prevent disputes about whether a return qualifies.
Specific rules for ebooks, software licenses, online courses, and downloadable files, including when refunds are available and when they aren't once access has been granted.
Step-by-step instructions for starting a return: contact method, what information to include, and what the customer should expect to happen next.
How long refunds take to process (typically 3 to 10 business days after receiving the return), and how the refund is issued: original payment method, store credit, or check.
If you offer exchanges in addition to refunds, this section explains the process, including how size or color swaps work and whether exchanges are free or involve additional shipping costs.
Specific categories that can't be returned: perishables, personalized items, intimate apparel, hazardous materials, and items marked final sale at time of purchase.
Whether sale or clearance items are eligible for refunds or exchanges. Most stores make sale items final sale, and this section makes that clear before purchase.
Who pays for return shipping: customer-paid, prepaid label provided, or free returns. For defective or incorrect items, the policy clarifies you cover return shipping regardless.
The questions e-commerce store owners actually ask
Your refund policy shouldn't cost more to generate than your first return.
| Feature | FreeTOS | Termly | TermsFeed |
|---|---|---|---|
| Price | Free | $14/mo | $9/mo |
| No Signup Required | Yes | No | No |
| PDF Download | Free | Paid | Paid |
| EU 14-Day Withdrawal Coverage | Yes | Yes | Yes |
| Digital Products Clause | Yes | Yes | Yes |
| Non-Refundable Items Section | Yes | Yes | Yes |
| AI-Tailored Output | Yes | Template | Template |
Where it needs to go, and how to make sure customers actually see it before they buy.
Legal requirements, platform mandates, and the business case — all three reasons point the same direction.
Consumer protection laws in most jurisdictions require you to honor some form of returns process for online purchases. The EU's Consumer Rights Directive gives shoppers an unconditional 14-day right of withdrawal on all online purchases regardless of what your store policy says. You cannot contract out of this statutory right. If an EU customer buys from your store and asks for a refund within 14 days of delivery, you must give it — and you must disclose this right clearly in your policy or face separate fines for the non-disclosure alone.
Platform requirements make a refund policy non-optional if you want to stay in business. Shopify's Terms of Service require merchants to have a refund policy. It is a condition of using Shopify Payments, and if you want your policy to appear at checkout (which it should), you configure it under Settings then Policies in your admin. PayPal's seller protection program requires a clearly posted return policy. Stripe recommends one and may flag accounts with high dispute rates that could be solved by clearer policy disclosures. Google Shopping requires merchants to have a visible return policy to run product listing ads. The more platforms you use, the more mandatory a refund policy becomes.
The business case is even more direct: chargebacks are expensive and preventable. Every chargeback costs you the product, the sale, and a dispute fee ranging from $15 to $35 depending on your processor. Stripe charges $15 per dispute. PayPal charges $20. Worse, if your chargeback ratio exceeds 1% of transactions, Visa and Mastercard place you in a monitoring program, and sustained high rates can get your processing account terminated. The most common chargeback reason code is effectively "I didn't know I couldn't return it." A clear, visible refund policy that customers can find and read before they buy eliminates most of those disputes at zero cost.
Any e-commerce store, digital product seller, subscription service, or marketplace seller. If you accept online payments, your payment processor and most platforms require a published refund policy as a condition of service.
Higher chargeback rates, payment processor account risk, EU consumer law violations, disqualification from Google Shopping, and customers who file disputes rather than contacting you because they can't find your policy.
Fewer chargebacks, platform compliance, higher purchase conversion rates, and customers who trust you enough to complete their first order — knowing exactly what happens if something goes wrong.
Platform-specific steps, requirements, and considerations for the two most popular e-commerce platforms.
Nine essential elements that every store's refund and return policy needs to cover.
How many days after purchase or delivery the customer has to initiate a return. The industry standard is 30 days. EU law requires a minimum of 14.
Items must be unused, unworn, and in original packaging with tags attached. Clear condition requirements prevent disputes about return eligibility.
Customer-paid, prepaid label, or free returns. For defective or incorrect items, you should cover return shipping regardless of your standard policy.
Whether refunds go to the original payment method, store credit, or exchange only. Customers have strong preferences here, so be explicit about what you offer.
When the refund will appear — typically 3 to 10 business days after you receive the return. Set realistic expectations to avoid follow-up emails and disputes.
Specific exclusions: perishables, personalized items, intimate apparel, hazardous materials, and items marked final sale. List these explicitly to avoid disputes.
Whether digital downloads, ebooks, courses, or software licenses are refundable after delivery. EU customers must acknowledge loss of withdrawal right at checkout.
What happens when products arrive damaged or are faulty. This should always result in a full refund or free replacement regardless of your standard return policy.
If you sell to Europe, the mandatory 14-day unconditional right of withdrawal must be disclosed. Failing to disclose it extends the withdrawal period to 12 months by law.
The questions store owners actually ask when setting up their refund policy
How generating your refund policy with FreeTOS compares to the alternatives.
| Feature | FreeTOS | Write It Yourself | Shopify Built-in |
|---|---|---|---|
| Quality | AI-customized | Template | Very generic |
| Free | Yes | Yes (time cost) | Yes |
| Customized to Your Store | Yes | Depends on effort | Basic only |
| EU 14-Day Withdrawal Coverage | Yes | If you know to add it | Partial |
| Digital Products Clause | Yes | If you remember | No |
| Download (HTML / PDF / TXT) | HTML / PDF / TXT | Manual | Not directly |