As U.S. retailers and merchants close the books on the busy post-holiday return season — better known as Returnuary — one thing is clear: the refund experience is no longer a back-office function. It’s a growth lever.
January return volumes put enormous strain on customer service teams, cash flow forecasting, and brand reputation. But the real risk isn’t operational — it’s emotional. When customers wait days or even weeks for their money back, trust erodes. Momentum stalls. Repurchase intent drops.
According to the Where Is My Refund Report 2026 from TodayPay, 95% of U.S. consumers say they would make repeat purchases from a merchant if offered an Instant refund. That is not a marginal improvement — it is a direct line between refund speed and revenue retention.
During Returnuary, merchants have a choice. They can treat refunds as a cost center — slow, reactive, and operationally painful — or they can redesign the experience to strengthen loyalty. Issuing an instant refund at the point of return transforms what is traditionally a negative customer moment into a trust-building interaction.
Fast refunds reduce inbound support inquiries, lower dispute risk, and preserve customer lifetime value. More importantly, they keep purchasing momentum intact. A shopper who receives funds immediately is far more likely to re-engage, browse again, and convert.
Retailers that modernize their refund strategy following Returnuary aren’t just solving a seasonal problem — they are investing in retention, repurchase rates, and long-term brand equity. In a market where acquisition costs continue to rise, the fastest way to grow may be to simply refund faster.
Yours truly,
The Instant Refund Expert®
The Refunds Blog 