Refund Policy Template and How to Draft One (2026)

What is a refund policy? A refund policy tells customers when they can get their money back, how to ask, and what they will receive. For a seller it does two jobs: it sets fair, clear expectations that reduce disputes and chargebacks, and it makes sure the business respects the refund and cancellation rights that law gives consumers. A good refund policy is short, specific, and honest about what is and is not covered. A refund policy often sits next to a return policy and a shipping policy, and the three are sometimes written as one. A return policy covers sending goods back; a refund policy covers getting money back; for digital goods and services there may be nothing to return at all. The template below is written for an online store selling to consumers, with notes on how to adapt it for digital products, services, and subscriptions. One point matters above all: a refund policy cannot take away rights the law gives a consumer. In many places, including India, the UK, the EU, Australia and elsewhere, consumers have statutory rights to a refund for faulty or misdescribed goods that no policy can remove. So the policy sets out your own, extra terms on top of those rights, not instead of them. This template is a strong starting point, not a one-size-fits-all document, and consumer law differs by country. For a regulated sector or cross-border selling, have a lawyer review it. ## A refund policy template you can copy ```

REFUND POLICY Effective date: [date] This policy applies to purchases from [store name] at [website]. 1. OVERVIEW We want you to be happy with your purchase. This policy explains when you can return an item or cancel a service and get a refund, and how to ask. It applies in addition to the rights you have under consumer law, which it does not limit. 2. RETURN WINDOW You may return most items within [14 / 30] days of delivery for a refund or exchange, provided they are [unused, in original packaging, with proof of purchase]. 3. ITEMS THAT CANNOT BE RETURNED For hygiene or safety reasons we cannot accept returns of [perishable goods, personalised items, opened intimate goods, downloadable software], except where the item is faulty. 4. FAULTY OR MISDESCRIBED ITEMS If an item is faulty, damaged, or not as described, you are entitled to a remedy under consumer law. Contact us within [a reasonable time] and we will offer a repair, replacement or refund as the law requires. 5. HOW TO REQUEST A REFUND Email [support] with your order number and reason. We will confirm within [X] business days and, where a return is needed, send return instructions. 6. RETURN SHIPPING Return shipping is paid by [the customer / us] for change-of-mind returns. For faulty items, we cover return shipping. 7. REFUND METHOD AND TIMING Approved refunds are made to the original payment method within [X] business days of us receiving the returned item or approving the request. 8. PARTIAL REFUNDS We may give a partial refund for items returned [used, damaged, or missing parts], with the reason stated. 9. CANCELLATIONS (SERVICES / SUBSCRIPTIONS) You may cancel a service before [milestone] for a [full / pro-rata] refund. Subscriptions can be cancelled at any time and will not renew; [state whether the current period is refundable]. 10. DIGITAL PRODUCTS Digital products are [non-refundable once downloaded / refundable within X days if unused], except where faulty or where the law gives a right to a refund. 11. CONTACT Questions about this policy: [email / address / phone].

- **Choose a return window and stick to it.** 14 or 30 days are common. A longer window is a selling point; a clear deadline prevents open-ended claims.
- **Be specific about exclusions.** List exactly what cannot be returned and why (hygiene, personalisation, downloaded software), and always carve out faulty items, which usually keep their legal remedy regardless.
- **Separate faulty from change-of-mind.** A change-of-mind return is a goodwill or statutory cooling-off matter; a faulty item triggers stronger legal remedies. Treat them in different clauses so customers and staff are clear.
- **State the refund method and timing plainly.** Refund to the original payment method, within a stated number of days. Vague timing is the most common cause of complaints and chargebacks.
- **Adapt for what you sell.** For services, set cancellation terms tied to milestones. For subscriptions, say whether cancelling stops future renewals only or refunds the current period. For digital goods, decide your rule before download and state it, remembering the law may still give a refund for faulty products. ## Goods, services, subscriptions and digital: what changes | Feature | Physical goods | Services | Subscriptions | Digital products |
|---|---|---|---|---|
| Main question | Return and refund | Cancel before delivery | Stop renewal, refund period | Refund before or after download |
| Window | 14 to 30 days | Before milestone | Any time to stop renewal | Often limited once downloaded |
| Return needed | Yes | No | No | No |
| Faulty remedy | Repair, replace, refund | Re-perform or refund | Refund affected period | Fix or refund |
| Watch | Return shipping cost | Pro-rata for work done | Auto-renewal disclosure | Clear pre-purchase rule | ## Consumer law and jurisdiction notes - **Statutory rights override the policy.** Consumers generally have a legal right to a refund, repair or replacement for goods that are faulty, unsafe, or not as described. India's Consumer Protection Act, the UK Consumer Rights Act, EU consumer rules, and the Australian Consumer Law all give such rights. A policy cannot remove them.
- **Cooling-off periods.** Many jurisdictions give consumers a right to cancel certain online or distance purchases within a set period, even for change of mind, with some exceptions such as personalised or downloaded digital goods. Check the rule where your customers are.
- **Clear disclosure for subscriptions.** Auto-renewal and the steps to cancel usually have to be disclosed clearly, and some places require a reminder before renewal. Make cancellation as easy as sign-up. *This template is general information, not legal advice. Consumer and distance-selling rules vary by jurisdiction, so have a qualified professional review the policy for your market and sector.* ## Where a contract workspace helps A refund policy rarely stands alone. It sits with the terms of service, the return and shipping policies and, for subscriptions, the billing terms, and it has to stay accurate as you add products, enter new markets and the law changes. Drafting the policy, reviewing it for clauses that clash with those related documents, tracking each version's effective date and governing it as things change can sit in one AI workspace tuned to what you sell and where. [Adira](https://adiralaw.com) brings that work into one shared workspace. The template above is enough to prepare a policy on its own; the workspace keeps it aligned with the other documents and markets it has to serve.