Instant Returns (Beta)

OVERVIEW

Instant Returns allows merchants to offer customers the option for immediate processing of refunds, exchanges, and store credit. Using the same approach as Loop’s Instant Exchange feature, which requires a customer to enter their credit card information in exchange for immediate processing of their exchange order, Instant Returns expands this functionality to cover all return outcomes.

In this article:

• Customer experience
• Setting up Instant Returns
• Instant Returns reporting
• FAQ

Customer Experience

The customer experience with Instant Returns is the same as a normal return until the final review screen before submitting the return. On the Review page, the customer will have the option to get their outcomes immediately, or processing their return after it’s been sent back.

If the customer chooses Instant Returns, they’ll be prompted to add their credit card info. Loop will create a hold on their card for $1 or the total amount of the returning item(s) as set by you. The hold will stay in place for 7 days and then drop, regardless of whether the product is returned or not. If the return item has not been marked as "in-transit" within the return window you set, Loop will charge the card the full cost.

Loop includes a tooltip here to make it clear that they will only be charged if their original product is not en route to you within your set time frame. The return confirmation page will also reflect the hold.

Customers that do not want the hold on their card or are not interested in an Instant Returns can choose to do a regular return without adding card information. Customers doing a regular exchange that includes an upsell amount will still need their card to pay the difference.

Notifications

Customers will be sent Instant Returns specific emails when choosing that route.

The Instant Returns specific Return Confirmation email reminds customers they need to return their products by a given date.

Loop will also send the customer an Instant Return Reminder email 7 days and 1 day before the customer is charged, assuming the product has not been returned yet.

Setting up Instant Returns

1. In Settings > Return Policies, click Edit on any policy you would like to activate Instant Returns for. Scroll down to the Instant Return section, and click the switch on the right to turn on Instant Returns.

   

2. Once turned on, you have 3 choices to make regarding how Instant Returns will work:
   1. Authorization amount hold
      1. $1 authorization allows Loop to collect the credit card information needed to charge the customer if necessary, without putting a hold on the customer's card for 7 days. This is the recommended configuration for merchants issuing refunds instantly.
      2. Full return value authorization will place a hold on the customer's card for the full amount of the return product. Since a hold will fail if the card doesn't have enough funds, this ensures the customer’s card has enough funds to cover the value of the return product.
   2. Time to return before charging
      1. Merchants can use this setting to extend the time period customers have to return their products before the card gets charged from the default 14 days.
      2. The time to return must be between 14 and 28 days.
   3. Requiring instant exchanges for all exchanges
      1. By default, customers will have the choice to use Instant Returns or not.
      2. Checking this box will require every customer to submit their return as an Instant Return. Customers will be required to input credit card info to complete their return.

While Instant Exchanges should work automatically without merchant intervention in most cases, please note that merchants do have the option to:

• Charge the customer manually if a product came back in non-restockable condition.
• Retry a failed payment.
• Manually refund the customer is the product is returned after the return window.
• Release the hold manually.

Instant Returns reporting

Loop can’t modify the original order in Shopify (that is, “un-return” the item) or add the charge into Shopify, so the Instant Returns reporting will help you confirm which returns were charged due to the customer not sending the original item back.

The Instant Returns report reflects the original order, the exchange order when applicable, and the state of the hold and charge, when applicable.

All instant outcomes are currently grouped together, there is no report specific to refunds or exchanges.

Instant Return statuses

The Exchange Last Action column in the Instant Returns report gives you the status of the return at that point in time. Statuses are:

• Auth: The card has been charged the authorization hold. The customer has not been charged yet. This step will happen on every Instant Return.
• Auth_Expired: The hold placed on the credit card has fallen off. Holds typically stay on a card for up to 5 business days, but this varies based on the banking institution.
• Returned: The return product has been sent back to the merchant. The card will not be charged.
• Charged: This is the status when the card is fully charged.

Instant Returns in Shopify

When an Instant Return is resolved, a note is added to the original order in Shopify so merchants can quickly see the resolution. For example:

When IR is charged — “Instant Return charged $xx.xx because {item} was not returned”

When IR is refunded — “Instant Return refunded $xx.xx because {item} was returned”

FAQ

Is this feature included in my Loop plan? To check to see if this feature is included in your plan, please review the Pricing page on the Loop Returns website.

How much is the hold placed on the customer's card? This depends on how you’ve configured Instant Returns. It is either $1 or the full value of the return item.

We don't use tracked labels or labels generated by Loop - can we still use Instant Returns? While it is technically possible, it is not a recommended configuration and requires significant work to maintain.

Does this impact the return window? No. Your return window will stay the same. Instant Returns does cut down on the standard amount of time customers have to send their original product back.

Is there a Stripe processing fee for these holds? No. Stripe will only charge payment processing fees if the customer is actually charged.

Does this feature completely resolve out of stock exchanges? No. Since customers are given the choice of whether or not to request an Instant Exchange, there may be some customers that continue to go the regular exchange route, which could result in OOS exchanges. We do anticipate that Instant Exchanges does decrease the frequency of these events.

What happens if the customer returns their item after their card is charged for the Instant Exchange? If the customer ends up returning their item, the return will go into the Needs Review tab. If their return is in good shape, you can refund the Instant Exchange charge by pushing the Refund All button under the Payment Information section on the return.

Can customers choose to do one outcome instant, but not the other? Not at this time. Customers can choose to do their whole return as instant, or normally.

If you have any questions regarding this feature, please contact support@loopreturns.com.