Understanding the "Authorize until Restock" Flow

The "Authorize until Restock" flow allows for the authorization of customer funds to be maintained until returned items are restocked.

Why Use This Flow? This flow mitigates the risk associated with customers who might indicate they are returning items but fail to follow through, potentially leading to payment avoidance. By holding funds until the restocking of items, brands gain an added layer of security against such scenarios.

Considerations & Potential Drawbacks

• Extended Fund Authorization: Holding funds for an extended period may affect the customer's perception of their shopping experience by limiting access to their funds.
• Delayed Payouts: Payments to the brand are deferred until the restocking process is complete, which might impact cash flow.
• Risk of Re-Authorization Failure: If funds cannot be re-authorized, the entire order amount is captured immediately, requiring refunds to be processed later if needed, which could confuse customers.
  
  

Customer Communication

Customers are informed upon completing their returns that the payment will be captured only when the items have been restocked, maintaining transparency throughout the process.

Processing the Return

Upon receiving returned items, the brand can choose to:

• Close the Return: This action prompts the capture of the final order balance for kept items and any applicable restocking fees.
  
• Capture Payment Manually: If items are not returned, are returned damaged, or if a different payment amount is warranted, the brand can manually capture the payment from the original authorization.
  
  
  

Handling Re-Authorization Failures

Should re-authorization fail, Try with Mirra will immediately capture the full order value. This transaction status updates to “Paid” and “Refund Owed” in the system.

Once returns are processed, the brand issues any necessary refunds directly through Shopify, which automatically calculates the refund based on the items kept and restocking fees.

Summary

Pros:

• Enhanced security against fraudulent returns.
• Ensured availability of funds at the time of restocking.

Cons:

• Extended fund holds can inconvenience customers.
• Delays in payment to the brand.
• Complexities arising from re-authorization failures.

Adopting the "Authorize until Restock" flow can enhance the security and reliability of the payment process in Try with Mirra, provided the trade-offs are communicated clearly to customers and managed efficiently by the brand.