Refund: The E-commerce Survival Guide to Mastering Refunds and Crushing Fraud

A word that makes all e-tailers cringe: REFUND.

For your customers, it's a right. For you, it's a potential hemorrhage of sales, a logistical headache and, all too often, an administrative nightmare. Worse still, it's a favorite playground for fraudsters.

Do you feel like you're going through the motions? Losing money on every claim, whether justified or not?

It's all over!

This guide is not just a definition. It's your arsenal. We'll dissect the refund mechanism, clarify your legal obligations and, above all, give you a concrete, ruthless action plan to fight fraud and regain control.

The Two Faces of Refund: Legal Obligation vs. Fraudulent Attack

Refund" simply means "refund". But in the world of e-commerce, it has two radically different facets. To fail to distinguish between them is to lose the battle.

1. LEGAL REFUND: Your Obligation, Your Pledge of Confidence

This is the reimbursement provided for by law. It is non-negotiable. In France and Europe, it is mainly governed by the right of withdrawal.

• The 14-Day Rule: Your customer has 14 days after receipt of the parcel to change his mind and return it to you, without having to provide any justification.
• Your duty: You then have 14 days to reimburse all sums paid, including the initial delivery costs.
• Other legitimate cases: Product arrived damaged (under your responsibility for transport), product does not conform to the description, preparation error on your part.

Don't see it as a loss, but as a contract of trust. A simple, clear returns process is one of the most powerful levers for conversion and loyalty.

2. The FRAUDULENT REFUND: The Silent Enemy

Here, we enter hostile territory. Refund fraud is an illegal act in which a dishonest person abuses your policies and the law to obtain an undue refund.

• The "Colis Jamais Reçu" (DNA - Did Not Arrive): The fraudster claims never to have received the parcel, even though the tracking system indicates otherwise.
• The "Empty Box": The fraudster claims to have received an empty box or the wrong item.
• Fake Damage": The customer damages the product himself to claim a refund and keep the item "free of charge" OR generates fakes to make it look like damage has occurred.
• The "Falsified Return": The fraudster returns a counterfeit, an old article or an empty box in place of the original product.

This fraud is not anecdotal. It costs billions every year and can destroy a company's profitability if left unchecked.

The fight against refunds and the role of insurers

Faced with this scourge, as we have just seen, online sales platforms are implementing measures to combat "refunds". They are also trying to get the authorities on their side.

At the same time, insurers and brokers, like Claisy, play a crucial role in offering solutions to protect e-tailers: through financial coverage and prevention tools. To this end, a number of technologies support the platforms:

• Strengthening verification systems: platforms are implementing stricter verification systems. The aim is thus to authenticate buyers and claims as finely as possible, while complying with legislation (e.g. RGPD).
• Specialized insurance : Brokers like Claisy market specific guarantees to cover losses linked to fraudulent reimbursements, offering additional financial protection for e-tailers. Claisy's services include claims handling assistance, fraud prevention tools and customized solutions.
• Working with the authorities: Platforms work closely with law enforcement agencies to track down fraud rings.

Current regulations

The legal framework is evolving to combat online fraud. As is often the case, action is reactive, as fraudsters often rely on the vagueness and/or gaps in current legislation. National and European legislation provides for criminal penalties for fraudsters (fraud, breach of trust or receiving stolen goods). At the same time, online sales platforms also have legal obligations in terms of consumer protection and the fight against fraud.

Example of a French legal text: Article 313-1 of the French Penal Code punishes fraud, defined as the act of obtaining or attempting to obtain for oneself or for others, by any fraudulent means whatsoever, a remittance of funds, an advantage of any kind or a signature. The penalties are often severe: breach of trust (article 314-1 of the French Penal Code) or fraud (article 313-1 of the French Penal Code) are punishable by 5 years' imprisonment and a 375,000-euro fine for fraud.

Your Battle Plan: 5 Steps to Beat Refund Fraud

Suffering is not an option. Here's how to build your fortress

Step 1: A BLIND Returns Policy

Your return policy isn't just a legal text - it's your first line of defense. It must be clear, detailed and visible.

• Demand proof: For all damage claims, make it compulsory to send clear, dated photos of the package AND the product, taken immediately upon receipt.
• Detail the Process: Explain precisely how to make a return, which Carrier to use, how to pack the product, etc.
• Set strict deadlines: specify the maximum time limit for declaring a dispute (e.g. 48 hours after receipt for visible damage).
• Mention Exclusions: Clearly list non-refundable products (personalized, perishable, etc.)

Step 2: Proof is Your Absolute Weapon

Never ship in the dark. Every shipment must be a fortress of proof.

• Tracking and Signature: ALWAYS use a delivery method with a tracking number. For valuable items (see our advice on shipping valuable goods), delivery against signature is NOT NEGOTIABLE. This is your best proof against "parcel not received" fraud.
• Shipping photos: For high-value orders, take a photo of the product in its package just before closing it. This can save you in the event of an "empty box" claim.
• Weigh your parcels: Recording the exact weight of your parcel at the time of shipment is a powerful deterrent to fraudulent returns.

Step 3: Become a Detective

Not all requests are created equal. Learn to spot the warning signs.

• Analyze historical data: A customer who systematically complains about several orders is a red flag.
• Check addresses: Some addresses (post office boxes, forwarding points) are more associated with fraud.
• Keep an eye on social networks: fraudulent refund "techniques" are often shared on forums or Discord/Telegram/Reddit groups.

Step 4: Automate Your Defense with Tools

Don't fight alone. Technology is your ally.

• Anti-fraud solutions: Tools (such as those integrated into Shopify, or third-party solutions) can analyze orders in real time and assign a risk score based on hundreds of factors (IP, email, history, etc.).
• Centralize data: Use a CRM or helpdesk to centralize all customer communications. This makes it easy to spot suspicious behavior and repeated complaints.

Step 5: Build your team

Your customer service team is on the front line. They need to be trained to be sentinels, not victims.

• Teach them to recognize warning signs
• Give them clear response scripts to handle suspicious requests firmly and professionally.
• Explain the importance of following the policy to the letter

Conclusion

Refunds are an inescapable reality of e-commerce: they're a legal obligation to be mastered, and a fraudulent threat to be crushed. By armoring your policies, arming your evidence and training your teams, you're not just reducing your losses.

You turn a potential weakness into a demonstration of strength, control and professionalism that protects your business in the long term.