A new report reveals the growing frustration among U.S. consumers with outdated refund systems, with 37% saying they would rather endure a trip to the dentist than wait seven days for a refund.
The study, Where Is My Refund? Understanding When, Where, and How Consumers Want Their Money Back, surveyed 500 U.S. shoppers to uncover their heightened expectations for quicker, more transparent refund processes.
“This jaw dropping data highlights the growing consumer dissatisfaction with outdated refund payment methods and the heightened expectations for instant gratification in today’s modern digital economy. Our findings are clear — U.S. consumers expect their refunds to be as seamless as when they make a payment. In an age where real-time payments and same-day deliveries are expected, consumers want to choose how their payment comes and at what speed,” said Jeremy Balkin, Founder & CEO of TodayPay.
The dentist comparison shows the extent of consumer impatience – in a world where real-time payments and same-day deliveries have become the norm, lengthy refund timelines feel outdated and aggravating.
The survey also found that speed is a top priority for shoppers, with 63% expecting same-day refunds, a 12% jump from last year. Refund delays have a tangible impact on brand loyalty, with nearly half of respondents stating they would avoid retailers who process refunds too slowly. Conversely, 74% said they would make repeat purchases if instant refunds were available.
Nearly all respondents (95%) want the ability to choose how they receive refunds, whether through gift cards, reward points, or even cryptocurrencies, reflecting a slight 2% increase in demand over the previous year.
Transparency in refund policies also emerged as a key issue, with vague processes topping the list of consumer frustrations. Shoppers emphasised the need for clarity and simplicity to make the experience less stressful and more reliable.
“Refunds are no longer the anonymous backend of the payment system where money just goes to die — they are a defining moment in the customer experience,” Balkin added. “For merchants that get refund payment choice right, the reward is loyalty, higher customer satisfaction, and repeat sales.”