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# Refunds, Fees & Deductions
> Issue Shopify refunds, automate settlement, and configure refund deductions
ShipBob Returns issues refunds through your connected Shopify store, so refunds land on the customer's original payment method and show up in Shopify like any other refund. This guide covers issuing refunds manually, automating them, and configuring deductions such as restocking or label fees.
## Issuing a Refund from the Return Detail Page
Open the return from the **Returns** page. When a return is eligible for a refund you will see a **Settle Refund** (or **Issue Refund**) action:
1. Click **Settle Refund**. You can review the items and amount before confirming.
2. Confirm. ShipBob Returns issues the refund through Shopify's API against the original order.
3. The return's refund badge updates to **Refunded** — or **Partially Refunded** if only some items were refunded (for example, items that were quarantined at inspection are excluded).
A few things to know:
* Issuing a refund does not change the return's lifecycle status. A refund can be settled while the return is still **Arrived**, and a return can be **Completed** while its refund is still **Pending Refund**.
* Partial refunds happen automatically when some items on the return should not be refunded — for example, a unit the warehouse quarantined as unsellable, or an unidentified item you chose not to accept.
## Automating Refunds with the Auto-Refund Flow
If you do not want to settle refunds by hand, build a flow with the **Auto-Refund** action — typically paired with the **Return Completed** trigger so the refund is issued the moment the warehouse closes out the return.
1. Go to **Flows** and create a new flow.
2. Choose the **Return Completed** trigger.
3. Add any conditions (for example, only auto-refund below a certain order value).
4. Add the **Auto-Refund** action and save.
See [Automate Returns with Flows](/labs/returns/flows) for trigger types and evaluation order.
## Configuring Refund Deductions
Deductions let you recover costs like restocking or return shipping by reducing the refund amount. Configure them in **Settings** under **Refund deductions**:
1. Turn on **Apply a deduction to refunds**.
2. Choose how the deduction is calculated:
| Option | How it works |
| ------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Flat amount per item, with region tiers** | A fixed fee for the first item plus a (usually smaller) fee for each additional item. Under **Region tiers**, you can set different amounts per country group — for example, one rate for domestic returns and another for international. |
| **Percent of item value** | A percentage taken off each refunded item's value. |
### Waiving deductions when the fault is yours
Under **Waive the deduction for these reasons**, pick the return reasons that should skip the deduction — typically reasons like *Item damaged* or *Wrong item received*, where charging the customer a fee would not be fair.
The waiver applies when **every item** on the return uses a waived reason. If a return mixes waived and non-waived reasons, the deduction still applies.
Mixed-reason returns can surprise customers if expectations are not clear. Keep reason labels precise and ensure your policy page explains deduction behavior.
You need return reasons configured before you can choose waivers. Manage your reason list in Settings — see Configure Return Policies.
## Store Credit Bonus
Store credit is not available yet in ShipBob Returns, so store credit bonus settings are not currently active.
For current and upcoming non-refund outcomes, see [Exchanges and Upcoming Outcomes](/labs/returns/outcomes).
## What the Customer Sees
Deductions are applied before the customer submits, so there are no surprises:
* On the review step, the portal shows an **Estimated Refund** total that already reflects any applicable deduction.
* Store credit messaging is not shown yet because store credit is not currently available.
* The confirmation email repeats the expected refund details.
## FAQ
#### Can I issue a refund before a return is marked Completed?
Yes. Refund settlement is tracked separately from the lifecycle status, so a return can be **Arrived** while still eligible for refund settlement.
#### Why would a return be partially refunded?
Partial refunds usually occur when only some items qualify for refund, such as quarantined units or items you decide not to accept.
#### Do deduction waivers apply to mixed-reason returns?
No. Waivers apply only when every item on the return uses a waived reason. Mixed waived and non-waived reasons still apply the deduction.
## Related Guides
* [Exchanges and Upcoming Outcomes](/labs/returns/outcomes)
* [Managing Returns Day-to-Day](/labs/returns/manage)
* [Configure Return Policies](/labs/returns/policy)