Why your refund policy is your first line of dispute defense
Card networks accept your refund policy as evidence in a chargeback. The catch: the customer must have seen it before paying.
A clear policy, linked at checkout and accepted with a checkbox, wins "not as described" and "cancelled recurring" disputes. A policy buried in the footer loses them. The generator writes the policy. The checklist under it tells you where to put it.
3 of 4
top dispute reasons a policy addresses
not as described, not received, cancelled subscription
540 days
how long Visa lets a cardholder dispute
keep policy versions and acceptance logs that long
24 hours
response time that prevents most disputes
the policy should promise it
What every refund policy needs
- The refund window in days, counted from delivery (physical) or purchase (digital and subscriptions)
- What qualifies: defective, not as described, not received, billing error
- What does not: change of mind after the window, used or consumed items, missed cancellation
- Who pays return shipping and whether a restocking fee applies
- How to request a refund: one email address, what to include, how long it takes
- How the refund is paid: original payment method, 5 to 10 business days
- Your statement descriptor, so customers recognize the charge on their statement
- For subscriptions: how to cancel, when renewals bill, and that reminders are sent
Policy choices that change dispute rates
| Choice |
Effect on disputes |
| Refund window 30 days or longer |
Fewer "not as described" disputes; customers ask you first |
| "No refunds" with no exceptions |
Highest dispute rate of any policy; networks side with cardholders on defective goods regardless |
| Free return shipping on your error |
Cuts "not as described" disputes; the customer has a cheaper path than their bank |
| Visible cancellation in account settings |
Cuts "cancelled recurring" disputes, the top reason code for subscriptions |
| Renewal reminder 7 days before annual charges |
Required by Visa and Mastercard for trial-to-paid; cuts "unrecognized" disputes |
| Checkbox acceptance at checkout |
Turns the policy into evidence you can win with |
No refunds
The policy that generates the most chargebacks
A no-refund policy does not stop disputes. It removes the cheaper option, so customers go to their bank. Issuers can still side with the cardholder on defective or undelivered goods. Use narrow exceptions (final sale, custom items) instead of a blanket ban.
Writing a no-refund policy that holds up
Some products cannot come back: custom work, perishables, event tickets, consumed services. A no-refund policy is legal in most US states, but it only protects the merchant when it is disclosed before payment and leaves the legal exceptions in place.
The generator has no blanket no-refund mode on purpose. Tick the exceptions (final sale, custom, perishable, hygiene, gift cards) and keep the "granted when" scenarios for defective, not as described and not received.
Label the items, not the store"Final sale" on the product page and in the cart beats a blanket "no refunds" line in the footer.
Keep the statutory exceptionsDefective, not as described and never delivered still get a refund. Networks side with the cardholder on these whatever the policy says.
Get an acknowledgment at checkoutA required checkbox next to the final-sale terms is the evidence that wins a "not as described" dispute.
Post it where state law saysNew York and Florida require the policy at the point of sale, and California requires a conspicuous display unless full refunds are given for at least 7 days.
Offer a cheaper path than the bankStore credit, exchange or a partial refund costs less than a $15 to $25 dispute fee plus the lost sale.
Cardholders who meet a flat "no refunds" answer usually file a "not as described" or "not received" dispute instead. The issuer decides on evidence, and a policy the customer never accepted is not evidence.
US rules that sit under every refund policy
A policy cannot override these. The generator's text is written to stay inside them.
| Regra |
What it requires |
Dispute it prevents |
| FTC Mail, Internet or Telephone Order Rule (16 CFR 435) |
Ship within the advertised time, or 30 days if none is stated. If you cannot, get the buyer's consent to the delay or refund the order. |
"Not received" |
| ROSCA (15 U.S.C. 8401 to 8405) |
For online subscriptions: disclose the terms before taking billing details, get express informed consent, and provide a simple way to stop recurring charges. |
"Cancelled recurring" |
| New York GBL 218-a |
Post the refund policy conspicuously, including time limits, cash vs credit and fees. A retailer that does not is liable for refunds for up to 30 days. |
"Not as described" |
| Florida 501.142 |
A store with no refund or exchange policy must post a sign at the point of sale, or refund unused items within 7 days. |
"Not as described" |
| California Civil Code 1723 |
Display the return policy conspicuously unless full refunds, credit or exchange are given for at least 7 days with proof of purchase. |
"Not as described" |
The FTC's broader Click-to-Cancel rule was vacated by the Eighth Circuit on July 8, 2025. ROSCA and state auto-renewal laws still apply, and the card networks' own subscription rules (receipts, reminders, online cancellation) apply regardless.
Business types the generator covers
Physical products
- Return window from delivery date
- Return shipping and restocking fee choices
- Exceptions for final sale, custom, perishable, hygiene and gift cards
Digital products
- Refund window from purchase
- Access and download logs as evidence
- Preview or trial length
Subscriptions (SaaS)
- Trial length and first-charge reminder
- Cancel-anytime language and renewal reminders
- Prorated or non-refundable renewals
Services, bookings and courses
- Cancellation deadline before the start date
- Reschedule or credit instead of refund after it
- Satisfaction guarantee window
Where the policy has to appear
Checkout, before the pay buttonA link plus a required checkbox. This is the acceptance log you will cite in a dispute.
Product and pricing pagesA one-line summary ("30-day returns, free on our error") near the price.
Order confirmation and shipping emailsRepeat the window and your support address.
Account settings for subscriptionsThe cancel button and the policy link on the same screen.
FooterFor discoverability, but never only here.
Perguntas frequentes
Is a refund policy legally required?
US federal law does not require one. New York, Florida and California require you to post your policy clearly if you do not give full refunds. For subscriptions, ROSCA requires clear terms, express consent and a simple way to cancel. The EU and UK give buyers a 14-day right to cancel most online orders.
Can a refund policy stop chargebacks?
It cuts them and helps you win the ones still filed. Card networks accept a policy the customer saw and accepted before paying as evidence. That covers "not as described" and "cancelled recurring" disputes.
Can I have a no-refund policy?
Yes in most places. Defective goods and legal rights are still exceptions. In practice a no-refund policy raises chargebacks, because customers go to their bank instead of you.
What should a subscription refund policy include?
Trial length and when the first charge happens. How to cancel and when renewals bill. Whether renewals are refundable. A promise to send a reminder before annual charges.
Does the generator produce a legally binding document?
It produces a plain-language template based on common practice. Have a lawyer check it for your region. This matters most if you sell in the EU, UK, Australia or California.
How do I use the generated policy as chargeback evidence?
Save a dated copy of each version. Log the checkbox acceptance with a timestamp and IP address. Send both with the order details in your dispute response.
What is a typical refund policy?
For physical goods, 30 days from delivery, unused and in original packaging, refunded to the original payment method within 5 to 10 business days. Digital products usually get 14 days or a refund only for faults. Subscriptions refund the first payment within a short window and treat renewals as final.
What is a no-refund policy?
A policy that states sales are final, usually for custom, perishable, digital or event purchases. It must be disclosed before payment and still carries the legal exceptions: defective, not as described and never delivered. Several states require a posted notice before a no-refund policy applies.
Does a no-refund policy protect against chargebacks?
Only partly. It helps win "change of mind" disputes if the customer accepted it at checkout. It does nothing for defective, not as described or not received claims, where the issuer looks at evidence, not policy. It also pushes more customers to dispute instead of asking.
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