Standard documentation sample
SOP: Refund & Dispute Handling
- Document ID
- 003
- Owner
- Affordable Digital Solutions (ADS)
- Effective date
- February 2, 2026
1. Purpose
This SOP describes how a support agent handles a refund request or payment dispute from first contact to resolution. It exists so that any trained agent can decide, act and reply without escalating to a senior teammate.
2. Scope
Applies to all direct-to-consumer orders placed through the online store. Covers refund requests, partial refunds, returns-in-transit and card chargebacks.
Not covered: wholesale orders, marketplace orders and subscription cancellations.
3. Who is responsible
| Role | Responsibility |
|---|---|
| Support Agent | Triages the request, applies the decision tree and issues refunds within threshold. |
| Support Lead | Approves refunds above threshold and handles goodwill exceptions. |
| Finance | Reconciles refunds weekly and submits chargeback evidence packs. |
4. Approval thresholds
| Refund value | Who approves | Target turnaround |
|---|---|---|
| Up to $75 | Support Agent (no escalation) | Same business day |
| $75.01 – $300 | Support Lead | 1 business day |
| Above $300 or any duplicate-charge claim | Support Lead + Finance | 2 business days |
5. Decision tree
- Is the order within the 30-day return window? No → send Template C (outside window) and offer store credit at the Support Lead's discretion. Yes → continue.
- Has the item shipped? No → cancel the order and refund in full. Yes → continue.
- Is the item damaged or incorrect? Yes → request two photos, refund in full without requiring a return, and log a fulfilment defect. No → continue.
- Is the customer returning the item? Yes → issue a prepaid label and refund on scan-in at the warehouse. No → offer partial refund or store credit per section 4.
- Is this a card dispute already filed with the bank? Yes → do not refund directly; go to section 7 and assemble the evidence pack.
Do not
Never issue a refund on an order that already has an open chargeback. Doing so results in a double loss — the bank claws back the amount and the refund still leaves the account.
6. Step-by-step procedure
- Open the ticket and locate the order in the admin panel using the order ID or email.
- Verify the requester matches the account email or the billing name on the order.
- Apply the decision tree in section 5 and record the outcome in the ticket's internal note.
- Issue the refund from the payment provider dashboard, refunding to the original method.
- Attach the refund reference number to the ticket.
- Reply using the matching template and set the ticket to Pending confirmation.
- Close the ticket after the customer confirms, or automatically after 5 days of silence.
7. Chargeback evidence pack
Assemble the following within 48 hours of the dispute notification and file it with Finance.
- Order confirmation with timestamp and IP address
- Billing and shipping address match record
- Carrier tracking history showing delivery
- Proof of delivery signature or photo, where available
- Full support conversation transcript
- Refund policy as displayed at checkout
- Written summary (max 200 words) stating why the charge is valid
8. Reply templates
| Template | Use when | Key promise |
|---|---|---|
| A — Refund approved | Refund issued within threshold | Funds return in 5–10 business days to the original method. |
| B — Return required | Item shipped and undamaged | Prepaid label attached; refund on warehouse scan-in. |
| C — Outside return window | Order older than 30 days | Store credit option offered; policy link included. |
| D — Dispute acknowledgement | Chargeback already filed | Bank process explained; no direct refund promised. |
9. Troubleshooting
| Issue | Resolution |
|---|---|
| Refund fails because the card has expired. | Refund to store credit or request bank details from Finance for a manual transfer. |
| Customer says the refund never arrived after 10 days. | Send the refund reference number and the acquirer trace ID for the customer's bank. |
| Return arrives without an RMA number. | Warehouse photographs the parcel; agent matches by name and address before refunding. |
10. Revision history
| Version | Date | Summary of changes |
|---|---|---|
| 1.0 | 2025-11-04 | Initial refund SOP published. |
| 1.1 | 2026-02-02 | Raised agent threshold to $75; added chargeback evidence checklist. |
Document ID: 003 · Sample prepared for portfolio review. Client names and figures are anonymised.