FreeTOSRefund Policy Generator

Free Refund Policy Generator

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.

100% Free · No Signup Required · AI-Generated
✨ Customize Your Refund Policy
💾 Digital Products (No Refund)
🏷️ Sale Items Excluded
📦 Original Packaging Required
🚚 Customer Pays Return Shipping
🔄 Exchange Only Option
⚠️ Defective Items Clause
🌍 International Returns
📄 Refund Policy Preview
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Generate Free Refund Policy
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AI-Generated Content
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Shopify & EU Compliant

Why Use FreeTOS for Your Refund Policy?

No paywalls. No subscriptions. Just instant, professional legal documents.

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Platform-Specific Language

Select Shopify, WooCommerce, or Etsy and get platform-appropriate language that matches your store's checkout flow and customer expectations.

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EU 14-Day Right of Withdrawal

If you sell to EU customers, our generator automatically includes the mandatory 14-day statutory cooling-off period required by EU Consumer Rights Directive.

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Digital Product Exclusions

Toggle digital product no-refund clauses, personalized item exclusions, and defective item provisions — all the nuances that protect your business.

Frequently Asked Questions

Everything you need to know about Refund Policies

Shopify strongly recommends having a refund policy and includes a dedicated page for it in their checkout settings. While not strictly mandatory on Shopify's end, major payment processors like PayPal and Stripe expect a clearly displayed refund policy.
A good refund policy should cover: return window (e.g., 30 days), acceptable condition of items, who pays return shipping, how refunds are issued (original payment or store credit), what's excluded (digital products, sale items), and the step-by-step process to initiate a return.
Yes, but with limitations. You can restrict refunds for digital products, personalized items, and perishables. However, EU consumers have a statutory 14-day right of withdrawal that cannot be waived, and some US states have minimum return window requirements for physical goods.
There is no universal requirement, but best practice is 30 days. EU law mandates a minimum 14-day cooling-off period for online purchases. Shopify's default template is 30 days and consumer protection laws across most jurisdictions expect a reasonable return window.
Digital products such as ebooks, software, and online courses can typically be marked as non-refundable once downloaded or accessed. You should clearly state this before purchase. EU consumers retain certain rights even for digital goods, so clear disclosure is essential.

Why a Refund Policy Actually Matters

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.

Chargebacks are expensive and they add up fast.

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.

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Who Needs One

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.

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Without One

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.

With a Good One

Fewer chargebacks, higher conversion rates, payment processor compliance, and customers who trust you enough to complete their first purchase.

What's Included in Your Generated Refund Policy

Every clause your store needs, from eligibility windows to non-refundable items.

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Return Eligibility Window

Your return window (30, 60, or 90 days from delivery), clearly stated so customers know exactly how long they have to initiate a return.

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Condition Requirements

Items must be unused, in original packaging, with tags attached (where applicable). Clear condition requirements prevent disputes about whether a return qualifies.

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Digital Products Handling

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.

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How to Initiate a Return

Step-by-step instructions for starting a return: contact method, what information to include, and what the customer should expect to happen next.

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Refund Timeline

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.

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Exchange Options

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.

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Non-Refundable Items

Specific categories that can't be returned: perishables, personalized items, intimate apparel, hazardous materials, and items marked final sale at time of purchase.

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Sale Item Policy

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.

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Return Shipping Costs

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.

More Refund Policy Questions

The questions e-commerce store owners actually ask

30 days is the industry standard and what most customers expect. It's also what Shopify's default template uses. EU law requires a minimum 14-day right of withdrawal, so 30 days comfortably covers that and still feels reasonable to customers. Some stores offer 60 or 90 days for a competitive advantage, especially in fashion and electronics. A longer window sounds scary but research consistently shows it doesn't increase actual return rates much, while it does increase purchase confidence.
In the EU, yes. Online customers have a 14-day right of withdrawal under the Consumer Rights Directive, with no questions asked. In the US, there's no federal law requiring refunds for physical goods, but the FTC has rules about delayed shipments and many states have their own minimum return requirements. In the UK, the Consumer Contracts Regulations give the same 14-day right as EU law. In practice, even in the US, refusing all refunds leads to chargebacks, which cost more than the refund itself, plus processor account risk.
Yes, but it's more nuanced. In the EU, digital content has a 14-day right of withdrawal unless the customer explicitly consents to immediate delivery and acknowledges they lose the withdrawal right by downloading. So if you sell ebooks or software downloads, you should show a checkbox at checkout where the customer acknowledges this. In the US, digital product refund policies are largely governed by your own stated terms, but credit card networks still allow chargebacks for "not as described" disputes regardless of your no-refund policy. Being clear and fair upfront is always cheaper than fighting disputes.
In the US, yes, restocking fees are legal as long as they're disclosed before purchase. Common restocking fees range from 10% to 25% for opened electronics or specialty items. In the EU, you can deduct from the refund if the returned item has diminished value due to handling beyond what's necessary to inspect it, but you cannot charge a flat restocking fee. The key is disclosure: your refund policy must mention the restocking fee and the percentage or calculation method clearly, and ideally this is also visible on the product page or at checkout.
A refund returns money to the customer (to original payment method or as store credit). An exchange swaps the product for a different size, color, or item of equal value. Exchanges are operationally more complex but often preferred by both stores (you keep the revenue) and customers (faster resolution). Some stores offer exchanges only, not refunds, for certain product categories. EU law requires that you offer a refund as one of the options for faulty goods, so you can't limit customers to exchanges only when a product is defective.
On Shopify: go to the order in Admin, click Refund, select full or partial refund, and Shopify processes it back to the original payment method automatically if you use Shopify Payments. For exchanges, you can create a new order and cancel the original. On WooCommerce: go to the order in Admin, click Refund, enter the amount, and process. WooCommerce will refund through your payment gateway automatically for most processors. For both platforms, document your refund in the order notes so you have a clear paper trail if a chargeback is filed later.
This happens more than it should. When it does, respond to the chargeback with evidence: your refund policy, proof of delivery, order confirmation, and any communication showing the customer was aware of your terms. A clear refund policy that was linked at checkout is your best defense. Even if you lose the dispute, responding with evidence reduces the "fraudulent" classification, which matters for your chargeback ratio. The best prevention is having a refund policy that's easy to find, easy to read, and easy to use, so customers contact you first instead of their bank.

FreeTOS vs Paid Policy Generators

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

How to Add Your Refund Policy to Your Store

Where it needs to go, and how to make sure customers actually see it before they buy.

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Shopify

  1. Go to Settings, then Policies in Shopify Admin
  2. Paste your refund policy into the Refund Policy field
  3. Shopify automatically adds it to your checkout page
  4. It also appears in the footer via your navigation settings
  5. To add a link on product pages, edit your product page template to include a "Return Policy" accordion or link
  6. Test at checkout to confirm the link appears and works
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WooCommerce

  1. Create a new WordPress page titled "Refund Policy" or "Returns and Refunds"
  2. Paste the HTML in the HTML editor and publish
  3. Go to WooCommerce, then Settings, then Advanced
  4. Set the Refund and Returns Policy Page to your new page
  5. WooCommerce will link it automatically in the checkout footer
  6. Also add it to your main footer menu under Appearance, then Menus
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Best Placement Practices

  1. Footer link on every page (most important)
  2. Checkout page, near the place order button
  3. Order confirmation email, as a link
  4. Product pages, especially for high-value items
  5. Your FAQ page if you have one
  6. Packing slip or delivery email for physical orders
Chargeback defense tip: When a customer places an order, your checkout should require them to have seen your refund policy. The most defensible setup is a checkbox at checkout: "I have read and agree to the Refund Policy" with a direct link. Stripe, PayPal, and card network dispute resolution all look favorably on merchants who can show the customer explicitly acknowledged the policy at time of purchase. This single step can turn a losing chargeback dispute into a winning one.