Credit instead of refunds

Any way to add credit to customers accounts instead of having to process refunds?

Last month it cost is £40 to refund 19 items that didn’t event match that cost. The fees are a bit annoying and big! Plus all the time.

Hi Down Farm
Sorry that you have been hit with a big fee from Stripe at the end of last month that you weren’t expecting. Sadly all online automated payment providers charge for their services. However, Stripe is the most economical and versatile provider around and there is no additional charge for refunds .

Stripe fees are 20 p + 1.4 % for EU cards per transaction. If you refund part of a transaction then the Stripe fee will be for the full amount.
For example, if a customer pays £20 by card, the Stripe fee is 48 p. If you then refund £5 of this (so the new total for the transaction is £15), the Stripe fee is still 48 p (it is not reduced to 41 p). Overall, the additional loss is 7 p (which I know is not ideal as every penny counts).

There is no charge from OFN for issuing refunds. We know that at the moment our refunding process is a bit cumbersome and not that user friendly. Our development team are working on improving it as we speak, as well as devising a new OFN credit system, which you asked for. I think the customer has a right to a refund in most cases and so shop credit will never be able to totally replace refunding.

Do you know the source of your refunds? If a supplying producer is consistently not able to meet their orders then perhaps part of the cost of refunds should be passed on? I suspect the need to refund so many items last month was due to unprecedented demand and now that things have calmed down and you are all used to updating available stock levels so no over selling occurs the need to refund will reduce.

Has the proportion of customers paying by card (rather than cash) significantly increased for you since the start of the pandemic? If so, perhaps it might be necessary to increase your enterprise fee a tiny bit to cover the extra cost of this payment method? However, verses cash payments, the cost of Stripe may not be not significantly more, when you take into account salaries to pay staff to count up cash and travel to and from bank to deposit it.

Please drop us an email support@openfoodnetwork.org.uk so we can help you further.

Kind regards
Louise

Hi Liv
Thinking more about your Stripe fees- have you been given an itemised breakdown? If not, perhaps we can help you request this from Stripe and maybe ask them to justify the £40.
Let me know your thoughts.
Kind regards
Louise