How to Calculate Refunds in BigCommerce

7 minute read

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Are you looking to process refunds in your BigCommerce store but not quite sure how to go about it? Look no further! In this article, we'll be discussing everything you need to know about refunds in BigCommerce, including how to understand refunds, setting up your store for refunds, processing refunds, and managing refund disputes.

Understanding BigCommerce Refunds

Before we dive into the nitty-gritty details of processing refunds in BigCommerce, it's important to understand what refunds are and how they work in relation to BigCommerce. In simple terms, a refund is a repayment for goods or services that have been returned. BigCommerce is an eCommerce platform that allows you to sell your products or services online, including processing refunds for any returns. If you're not already familiar with BigCommerce, let's take a closer look.

What is BigCommerce?

BigCommerce is an all-in-one eCommerce platform that enables businesses of all sizes to build, promote, and scale their online commerce site. It offers a wide range of features to make running your online store as seamless as possible, including payment processing, order management, and shipping integration.

With BigCommerce, you can easily customize your online store to match your brand and create a unique shopping experience for your customers. You can also manage your inventory, track your sales, and analyze your data all from one platform.

BigCommerce also offers a range of marketing tools to help you attract new customers and grow your business. These tools include SEO optimization, social media integration, and email marketing campaigns.

How Refunds Work in BigCommerce

When a customer returns an item, you'll need to issue a refund to credit their account. In BigCommerce, refunds are typically processed through the payment gateway you're using, such as PayPal or Stripe. When a refund is issued, the payment gateway processes it and updates the customer's account with the refunded amount. It's important to note that processing refunds can take several days, depending on the payment gateway and payment type used.

BigCommerce also offers a range of options for managing refunds. You can issue full or partial refunds, and you can choose to refund the original payment method or issue store credit. You can also choose to refund shipping costs or not, depending on your store's policies.

Overall, refunds are an important part of any eCommerce business, and BigCommerce makes it easy to manage them. By understanding how refunds work in BigCommerce and taking advantage of the platform's features, you can provide a seamless customer experience and grow your business.

Setting Up Your BigCommerce Store for Refunds

Now that we have a better understanding of refunds and how they work in BigCommerce, let's talk about how to get your store set up to process refunds.

Processing refunds is an essential part of running an online store. It's important to have a clear process in place for handling refunds to ensure customer satisfaction and protect your business's reputation.

Configuring Payment Gateways

First things first: make sure you have a payment gateway configured in your BigCommerce store. This will allow you to process refunds easily when needed. Payment gateways are the systems that process payments made by customers on your website. They connect your store to payment processors and financial institutions, allowing you to accept payments securely.

BigCommerce offers a range of payment gateway options, including PayPal, Stripe, Square, and many more. To set up a payment gateway, go to your store's control panel and select "Payment Providers." From there, you can choose which payment gateway to set up and follow the step-by-step instructions provided.

Once you have your payment gateway set up, you'll be able to process refunds directly through your BigCommerce store.

Creating a Refund Policy

It's important to have a clear refund policy in place for your customers to follow when requesting refunds. Your refund policy should outline the criteria for qualifying for a refund, the time frame for returns, and any additional fees or conditions. Make sure your policy is easy to understand and accessible on your website.

Having a clear refund policy helps to manage customer expectations and reduce the risk of disputes. It also helps to establish trust with your customers, as they know exactly what to expect when requesting a refund.

When creating your refund policy, consider the types of products you sell and the reasons customers may request refunds. For example, if you sell clothing, you may want to specify that items must be returned in their original condition with tags attached.

Customizing Email Notifications

When a customer requests a refund, they'll receive an email confirmation. Take the time to customize your email notifications to ensure they reflect your brand and provide all necessary information to the customer. You can do this by going to your store's control panel and selecting "Settings," then "Email Notifications."

Customized email notifications help to provide a professional and personalized experience for your customers. They also help to reduce confusion and ensure that customers have all the information they need regarding their refund.

Consider including information such as the expected processing time for the refund, any fees or conditions that may apply, and contact information for customer support.

By following these steps, you'll be well on your way to setting up your BigCommerce store for refunds. Remember, having a clear process in place for handling refunds is essential for maintaining customer satisfaction and protecting your business's reputation.

Processing Refunds in BigCommerce

Now that your store is set up for refunds, let's discuss how to process them.

Locating the Order to Refund

When a customer requests a refund, you'll need to locate the order associated with the returned item. To do this, go to your store's control panel and select "Orders." From there, you can search for the order by customer name, order number, or date.

Issuing a Full Refund

If a customer is eligible for a full refund, go to the order details page and click "Refund." Select the payment method used for the initial purchase and enter the refund amount. Click "Process Refund" to complete the transaction.

Issuing a Partial Refund

If a customer is eligible for a partial refund, follow the same steps as above but enter the appropriate refund amount. You can also include a note to the customer to explain the reason for the partial refund.

Refunding Shipping Costs

If a customer is eligible for a full refund including shipping costs, make sure to include the shipping costs in the refund amount. Some payment gateways may have a separate option for refunding shipping costs, such as PayPal.

Managing Refund Disputes

Sometimes customers may dispute a refund or file a chargeback. It's important to handle these situations carefully and professionally.

Handling Chargebacks

If a customer files a chargeback with their credit card company, it can be a lengthy and sometimes frustrating process. Keep detailed records of the refund request, including correspondence with the customer, and provide this information to your payment gateway provider. They will work with the credit card company to resolve the chargeback.

Resolving Customer Complaints

If a customer is unhappy with the refund process or has any complaints, take the time to listen to their concerns and offer solutions. Be patient and respectful, and do your best to work towards a positive resolution.

Preventing Fraudulent Refunds

Unfortunately, there are some individuals who may attempt to scam online stores by requesting refunds for items they never purchased. To prevent this, make sure to verify all refund requests and keep detailed records to avoid fraudulent transactions.


Processing refunds can be an integral part of running an online store. With the right tools and knowledge, it can be a smooth and stress-free process for both you and your customers. We hope this article has provided you with the information you need to confidently process refunds in your BigCommerce store.

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