TOP 20 FASHION REFUND RATE BY PAYMENT METHOD STATISTICS 2025

Fashion Refund Rate By Payment Method Statistics #1 – Buy Now, Pay Later (BNPL) At 66.9%

Buy Now, Pay Later (BNPL) transactions have the highest fashion refund rate at 66.9%. This is more than double that of traditional card payments, highlighting BNPL’s strong link to product returns. One major reason is “bracketing,” where shoppers order multiple sizes or styles and return most items. The deferred nature of payment makes buyers feel less financial risk, encouraging impulsive fashion purchases. Retailers offering BNPL must plan for greater return volumes and logistics costs.

Fashion Refund Rate By Payment Method Statistics #2 – Credit Card At 38.8%

Credit card fashion purchases show a refund rate of 38.8%, significantly lower than BNPL. Consumers using credit cards often feel a stronger responsibility to finalize purchases since payments are charged promptly. However, returns remain common due to size mismatches and style changes. Credit card companies also provide dispute protection, which adds to consumer confidence in returning. Retailers see credit cards as a stable yet still return-prone method.

Fashion Refund Rate By Payment Method Statistics #3 – Direct Bank Transfer At 38.6%

Direct bank transfers report a 38.6% fashion refund rate, almost identical to credit cards. Shoppers using bank transfers are often more deliberate with their orders since payments come directly from accounts. This reduces some impulse-driven returns but doesn’t eliminate issues like sizing and product expectations. The refund process may take longer, slightly discouraging casual returns. Still, it remains a widely used method in e-commerce, especially in Europe.

Fashion Refund Rate By Payment Method Statistics #4 – Invoice / Pay After Delivery Preference

Consumers preferring invoice-based fashion payments show up to 3× higher odds of being frequent returners compared to bank payment users. The ability to receive goods before paying makes it easier for buyers to send items back. This method attracts cautious shoppers who want to verify quality or fit before committing financially. As a result, return frequency is strongly associated with invoice use. Retailers offering invoices must prepare for heavier reverse logistics management.

Fashion Refund Rate By Payment Method Statistics #5 – Debit Card Refund Behavior

Debit card refund behavior usually mirrors credit cards but lacks published global percentages. Customers using debit often pay from disposable balances, which slightly reduces over-ordering compared to BNPL. Refund processing may take longer, affecting customer satisfaction. Many shoppers still favor debit for security and convenience. Overall, return rates with debit are assumed close to the 35–40% range.

Fashion Refund Rate By Payment Method Statistics #6 – PayPal Refund Behavior

PayPal is a popular digital wallet, but fashion return rates are not standardized across retailers. Its streamlined refund system encourages buyers to order with confidence. This ease sometimes increases product returns, especially in high-return categories like footwear. PayPal also has a strong dispute resolution process, which influences consumer willingness to send items back. While percentages vary, PayPal remains one of the most trusted refund methods worldwide.

Fashion Refund Rate By Payment Method Statistics #7 – Apple Pay Refund Behavior

Apple Pay users generally show similar refund patterns to credit card holders. Since Apple Pay transactions are tokenized card payments, refund percentages align closely with the underlying card. Its convenience can encourage slightly higher order volumes, sometimes leading to more returns. However, Apple’s secure and fast refund process balances this effect. Overall, returns via Apple Pay are efficient but not widely published in industry statistics.

Fashion Refund Rate By Payment Method Statistics #8 – Google Pay Refund Behavior

Google Pay also mirrors the card it is linked to, so its refund rate is comparable to standard card usage. The convenience of mobile checkout can sometimes result in faster purchase decisions. This behavior may increase returns in fashion, where impulse buying is common. Refunds are handled quickly, improving customer trust. Exact percentages aren’t published, but trends follow traditional payment averages.

Fashion Refund Rate By Payment Method Statistics #9 – Shop Pay Accelerated Checkout

Shop Pay, Shopify’s accelerated checkout, improves conversion but may indirectly raise fashion return rates. Fast checkout encourages bracketing behavior, especially in clothing and footwear. Refund rates vary by retailer, but operationally they align with card-based averages. Refund processing through Shop Pay is seamless, improving consumer confidence. Retailers using Shop Pay must balance convenience with return management.

Fashion Refund Rate By Payment Method Statistics #10 – Prepaid Card Purchases

Prepaid card refunds recredit the original card balance, creating a slightly different experience from debit or credit. Fashion return rates aren’t published specifically, but many retailers report similar numbers to debit cards. Prepaid cards often appeal to younger or budget-conscious consumers. Their cautious purchasing behavior may lead to fewer returns compared to BNPL. Still, prepaid refunds remain a small portion of fashion transactions.

Fashion Refund Rate By Payment Method Statistics #11 – Gift Card Or Store Credit Refunds

Refunds via gift cards or store credits are not tracked as percentages because they don’t return cash to the consumer. Instead, they keep funds within the retailer’s ecosystem. This reduces refund outflow but increases exchanges and repurchases. In fashion, store credits are often offered as alternatives to refunds. This method helps retailers retain revenue while accommodating returns.

Fashion Refund Rate By Payment Method Statistics #12 – Cash On Delivery (COD) Refund Behavior

Cash on Delivery (COD) creates unique refund dynamics. Many refunds happen at the doorstep through refusals rather than post-delivery returns. This makes refund rates appear higher in COD-heavy markets like South Asia. Fashion COD returns often stem from non-payment, wrong sizing, or buyer hesitation. Retailers face higher operational costs managing COD refunds compared to digital payments.

Fashion Refund Rate By Payment Method Statistics #13 – Bank Debit / ACH Payments

ACH or direct debit systems usually see return behavior close to bank transfers. Fashion refund rates for ACH are not consistently published. Customers paying via ACH are typically deliberate and lower risk. Refunds are slower compared to digital wallets, reducing casual returns. However, operational refunds are reliable and widely accepted in U.S. e-commerce.

Fashion Refund Rate By Payment Method Statistics #14 – Open Banking (PSD2 in EU/UK) Refund Behavior

Open banking transactions are newer but show promising reliability. Strong authentication reduces fraudulent orders and unnecessary returns. Refund percentages in fashion remain under-reported. Retailers adopting open banking see fewer disputes compared to cards. Still, returns caused by sizing or style remain unaffected.

Fashion Refund Rate By Payment Method Statistics #15 – UPI (India) Refund Behavior

Unified Payments Interface (UPI) is India’s fastest-growing digital payment system. Fashion refund rates are not consistently measured but vary by retailer. Instant refunds encourage buyers to order freely, similar to PayPal. However, returns still depend on apparel fit and quality. UPI’s efficiency is making it a standard option in Indian e-commerce.

Fashion Refund Rate By Payment Method Statistics #16 – Mobile Money (e.g., M-Pesa) Refund Behavior

In markets like Africa, Mobile Money systems dominate payments. Refunds are processed directly into mobile wallets, creating consumer confidence. Fashion return percentages are not published globally. This method enables access for unbanked populations, expanding e-commerce. Retailers must adapt refund processes to local mobile wallet infrastructure.

Fashion Refund Rate By Payment Method Statistics #17 – Alipay Refund Behavior

Alipay is one of the dominant wallets in China. Refund rates in fashion are shaped by buyer protection rules and logistics networks. Consumers are confident returning products due to streamlined refunds. While exact percentages aren’t widely available, return rates are comparable to other digital wallets. Retailers entering Chinese fashion e-commerce must optimize for Alipay. 

Fashion Refund Rate By Payment Method Statistics #18 – WeChat Pay Refund Behavior

WeChat Pay also powers a large share of Chinese e-commerce. Fashion refunds are quick and integrated with chat-based customer support. Refund percentages follow trends similar to Alipay. Consumers see WeChat Pay as reliable, boosting purchase confidence. This integration strengthens loyalty but also sustains high return rates in apparel.

Fashion Refund Rate By Payment Method Statistics #19 – Cryptocurrency Refund Behavior

Cryptocurrency remains rare as a payment method in fashion. Refunds are often processed as store credit to avoid volatility risks. This makes it harder to measure refund percentages. Customers using crypto are niche buyers, often valuing innovation. Retailers experimenting with crypto face challenges in managing refunds smoothly.

Fashion Refund Rate By Payment Method Statistics #20 – Issuer EMI (Card Installments) Refund Behavior

Card-based installment payments differ from BNPL but still spread out costs. Refund percentages are generally lower than BNPL, closer to standard credit card levels. Consumers paying installments are slightly more committed to purchases. Still, returns happen due to apparel fit and style changes. Retailers must align refund handling with issuers to ensure smooth repayments.