How does Refundid make money?

If you’ve ever used Refundid to get an instant refund for an online return, you may have wondered... How does Refundid make money? Are there hidden fees? Is it too good to be true? These are common questions. The good news is that Refundid operates on a simple business model that benefits both retailers and shoppers.

‍TL;DR: Refundid makes money mainly from retailer SaaS and transaction fees. Smaller streams include the optional Refundid Plus subscription and customer penalties, which exist only to encourage correct return behaviour and cover risk, not to drive profit.

‍Core Business Model

Refundid earns the majority of its revenue from it's retailers. We currently partner with more than 300 retailers across Australia and the USA.

To make things easier for retailers, we manage their returns process and provide a seamless experience for the customer. In return, Refundid charges retailers a monthly SaaS fee to use our platform, along with a transaction fee on each instant refund we process.

Why Would a Retailer Pay for Refundid?

Refundid’s biggest value to businesses is removing one of the most painful aspects of online shopping: slow, uncertain refunds.

Retailers that work with Refundid see several key benefits:
- Improved repurchase rates: Shoppers are more likely to buy again when returns are painless.
- Fewer customer emails: Customers aren’t left wondering when their money will arrive.
- Exchange incentives: Refunds can be converted into store credit or exchanges, helping retailers retain revenue.

This creates a win-win. Customers get faster service, and retailers build loyalty and efficiency.

Other Revenue Streams

Refundid Plus Subscription

Refundid’s standard service is free for customers, but there’s also an optional paid tier called Refundid Plus.
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For $3.99 per month, shoppers unlock extra perks such as:
- Return shipping insurance on all returns
- No decline fees
- Extra time to ship returns
- Carbon offset for all returns

This subscription is designed for frequent online shoppers who value convenience and peace of mind. It’s not mandatory, but it allows Refundid to diversify revenue while offering premium benefits to loyal users.

Customer Fees

Refundid is designed to be free for all users as long as basic return principles are followed: send back the right item, in returnable condition, within the allowed timeframe.
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A fee only applies if a customer does something wrong in the process, such as failing to scan the return within the provided 7-day shipping window or sending back an item in a non‑returnable state. These charges are there to incentivise the right return behaviour and to cover the risk and cost of bad behaviour, not to generate profit for Refundid.
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As long as returns are handled correctly, Refundid is completely free to use with no hidden charges.