Every January, U.S. retailers brace for the post-holiday surge of returns — a season now widely known as Returnuary. While most merchants focus on processing volume and minimizing operational strain, far fewer recognize the strategic opportunity hidden inside the refund experience itself.
Returns are not just a cost center. They are a defining customer moment. When shoppers wait five to ten business days for funds to reappear, uncertainty sets in. Frustration builds. Repurchase intent weakens. In an environment where customer acquisition costs continue to rise, retailers can’t afford refund friction.
The data makes this clear. According to the Where Is My Refund report from TodayPay, 95% of U.S. consumers say they would make repeat purchases from a merchant that offers an instant refund. That statistic alone reframes refunds from a back-office transaction into a powerful loyalty driver.
Issuing funds immediately at the point of return does more than improve customer satisfaction. It preserves purchasing momentum. When consumers regain access to their money in real time, they are significantly more likely to browse again, re-engage with the brand, and convert into a new sale. Fast refunds also reduce inbound support inquiries, limit dispute risk, and improve overall customer lifetime value.
Retailers who modernize their post-purchase journey following Returnuary can transform a traditionally negative interaction into a competitive advantage. Instead of viewing refunds as revenue leakage, merchants should view speed as a retention strategy.
The brands that win in 2026 and beyond will not simply manage returns efficiently — they will redesign the refund experience to drive loyalty, repeat purchases, and long-term growth.
Yours truly,
The Instant Refund Expert®
The Refunds Blog 