Worldpay has launched a service that delivers near-instant refunds, depending on the receiving financial institution. This helps to close the gap between consumer expectations and merchant capabilities.
The faster refund capability is available to the vast majority of UK shoppers using Mastercard and Visa cards when making purchases at participating retailers, including HMV. Consumers who make an eligible return can now receive near-instant refunds when returning goods for online purchases.
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Under many systems, refunds can take days to reach consumer accounts. Worldpay research shows 40% of consumers expect a refund within 24 hours when making a return and now this could be a reality for shoppers with refunds coming through within minutes.
Retailers that enable the faster refund service can improve their overall customer experience and satisfaction levels
This will drive better rates of retention and cost efficiency through reduced queries related to refunds.
Alan Marquard, Head of Transfer Solutions at Mastercard, said: “UK consumers can pay for goods and services instantly, however, refunds have not kept pace with that level of immediacy. Leveraging Mastercard Move’s money movement capabilities, we are supporting Worldpay to increase the speed of refunds to some of the UK’s most well-known brands, giving shoppers greater peace of mind and helping retailers offer a first-rate service.”
Anastasia Serikova, VP Revenue & Growth, Visa Direct EU, commented: “As leaders in card issuance, it is our responsibility to work across the entire ecosystem to drive innovation and change, which is why we’re excited to be working with Worldpay to improve on refunds for consumers. Consumers want their money to move faster, whether that’s when sending or receiving funds, together we’re delivering a positive change in how refunds are done.”
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By GlobalDataJohn McNaught, Head of Payouts at Worldpay, added: “Studies show that up to 30% of all e-commerce purchases end in a return or exchange. Offering a faster refund experience means merchants can create better customer interactions. For example, it could potentially reduce calls to customer service to track funds,” Put plainly, refunds are a headache for consumers and merchants alike. Worldpay is taking the pain out of the process by making refunds nearly instant.
In addition to the UK, the service will be rolling out to merchants across the European Union in 2025 for both online and point-of-sale transactions.
