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ACI Worldwide Report: Global Refund Volumes Surge 18% as Retailers Tighten Returns
New analysis shows holiday-driven refund growth, rising fraud risk, and growing pressure on retail margins despite strong eCommerce growth OMAHA, Neb. &
About this update from Aci Worldwide, Inc.
[{"type":"text","content":"\nNew analysis shows holiday-driven refund growth, rising fraud risk, and growing pressure on retail margins despite strong eCommerce growth\n\n\n OMAHA, Neb. & LONDON--(BUSINESS WIRE)--\nAnnual refund volumes in the global retail sector increased 18.1 % in 2025, while refund value rose 12.7% year-on-year, according to ACI’s annual Global Ecommerce Report. ACI Worldwide (NASDAQ: ACIW), an original innovator in global payments technology, analysed billions of retail transactions worldwide as part of the study.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260202280601/en/\nRefund activity peaked sharply during the holiday season; November and December together accounted for approximately 20% of all refunds in 2025. December alone recorded a 2.89% refund rate, meaning nearly three out of every 100 purchases resulted in a return, compared with an average refund rate of 2.25% between January and October.\n\n\nThe findings come amid continued growth in global eCommerce. Across all retail sectors, eCommerce transaction volumes grew 28.3% in 2025, while total transaction value increased 34.3% year-on-year, driven by consumer demand for convenience, sustained innovation across the retail ecosystem, and rising levels of consumer trust.\n\n\nWhile refund rates are rising more slowly than eCommerce transactions, their financial impact for retailers remains significant. Every $1 million in refunds typically translates into around $1.3 million in total costs once reverse logistics, inventory depreciation, payment processing fees, and fraud-related overheads are accounted for.\n\n\nAs refund volumes accelerate, retailers are rethinking their approach to returns and fraud management. This includes deploying AI-driven identity verification, real-time monitoring, and tighter, more adaptive return policies. Increasingly, merchants are applying real-time analytics traditionally reserved for fraud prevention to refund and return activity—seeking to reduce abuse while preserving a frictionless experience for legitimate customers.\n\n\n“The sharp rise in refund volumes is exposing a growing pressure point for retailers—one that directly threatens margins, especially during peak periods and extended return windows,” said Adriana Iordan, head of merchant product management and payments i...