Today we released the 2025 Edition of Where Is My Refund, in collaboration with our friends at TodayPay, the leaders in refunds.
It’s now the longest running consumer survey of its kind in relation to refunds. The results of the study paints a picture of U.S. consumers growing even more frustrated with the antiquated refund payment method, as nearly 95% of qualified shoppers want refund payment method choice, up 2% in the past 12 months. Last year, a trillion dollars of value was exchanged after checkout. That enormous value exchange from merchants to consumers is called a refund.
Refunds are a necessary part of business, but how they’re managed can make or break customer satisfaction. PYMNTS Intelligence reveals that 79% of consumers would prefer instant refunds if offered. Many are even willing to pay for the convenience, with percentage-based fees being a popular choice for smaller refund amounts.
Demand for faster and more efficient refund processes has become a significant
concern for U.S. consumers, particularly in the context of rising retail sales and
the continued growth of online shopping. This report examines consumer
preferences, the challenges retailers face in meeting these expectations, and
the opportunities this trend presents for businesses to innovate and capitalize
on the growing refund market.
Here’s the data you need to know:
- 79% of consumers received a refund in the last 90 days (+1% YoY)
- 16% of consumers want their refund within seconds (+2% YoY)
- 63% of consumers want same-day refunds (+12% YoY)
However, the actual time it takes is closer to a week!
- 87% of consumers received their refund in a week (+14% YoY)
Unsurprisingly, consumers aren’t happy waiting a week for refunds. The research unveiled some jaw-dropping data that took us by surprise.
- 37% of consumers would rather go to the dentist than wait a week for a refund
It’s not often we’re speechless, but those results left us “gobsmacked” as the British like to say.
We’ve been blogging about fixing and improving the awful refund customer experience for over two years now. We’re thrilled there’s actually a company out there leading the way – thanks TodayPay! But the results only vindicate the crusade we’re on. The consumer sentiment is worse than the prior year!
In today’s digital-first economy, U.S. consumers expect immediate solutions for
their shopping needs, from making a purchase to receiving a refund. Data
shows that over 75% of shoppers prioritize speed in refund processing when
considering future purchases. Slow refund processes negatively impact
customer loyalty, with nearly half of respondents stating they would avoid
retailers who delay refunds.
Improving the refund customer experience not only enhances customer
satisfaction but also fosters brand loyalty, as consumers associate efficient
refunds with trustworthy brands. This increased volume of buying online creates
an associated increase in returns, resulting in an urgent need for brands to
optimize refund customer experience to maintain competitive advantage.
For businesses, offering instant refunds is a simple yet effective way to align with consumer needs. Instant refunds eliminate the frustration of waiting, turning a potentially negative experience into a positive one. Moreover, they signal that the company values the customer’s time and financial well-being.
Yours truly,
The Instant Refund Expert®
The Refunds Blog 