ACI Worldwide Report: Global Refund Volumes Surge 18% as Retailers Tighten Returns

OMAHA, Neb. & LONDON--(BUSINESS WIRE)--Feb 3, 2026--

Annual 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.

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Refund 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.

The 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.

While 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.

As 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.

“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 intelligence at ACI Worldwide. “Retailers need smarter, AI‑driven controls that spot abuse in real time and adapt policies dynamically, without adding friction for genuine customers. By bringing fraud and refund management together, merchants can curb losses, protect profitability, and still deliver a customer seamless experience—even as refund volumes continue to climb.”

Key Highlights at a Glance (Year‑on‑Year, Retail)

About the Report:
ACI’s Global Annual Ecommerce Report provides insight on the latest eCommerce trends based on an analysis of billions of global retail transactions processed in 2024 and 2025.

About ACI Worldwide

ACI Worldwide, an original innovator in global payments technology, delivers transformative software solutions that power intelligent payments orchestration in real time so banks, billers and merchants can drive growth, while continuously modernizing their payment infrastructures, simply and securely. With nearly 50 years of trusted payments expertise, we combine our global footprint with a local presence to offer enhanced payment experiences to stay ahead of constantly changing payment challenges and opportunities.

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ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay, and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries, or both. Other parties’ trademarks referenced are the property of their respective owners.

ACI Worldwide Report: Global Refund Volumes Surge 18% as Retailers Tighten Returns

WASHINGTON (AP) — A divided Supreme Court on Thursday dismissed Alabama's bid to be allowed to execute a convicted murder who was found by lower courts to be intellectually disabled.

The court's action leaves in place lower court rulings in favor of Joseph Clifton Smith, 55, who has been on death row roughly half his life after his conviction for beating a man to death in 1997.

The Supreme Court prohibited execution of intellectually disabled people in a landmark ruling in 2002. The justices, in cases in 2014 and 2017, held that states should consider other evidence of disability in borderline cases because of the margin of error in IQ tests.

The issue in Smith’s case is what happens when a person has multiple IQ scores that are slightly above 70, which has been widely accepted as a marker of intellectual disability. Smith’s five IQ tests produced scores ranging from 72 to 78. Smith had been placed in learning-disabled classes and dropped out of school after seventh grade, his lawyers said. At the time of the crime, he performed math at a kindergarten level, spelled at a third-grade level and read at a fourth-grade level.

The justices had taken up the case to consider how courts should handle such borderline cases of intellectual disability. Arguments took place in December.

Rather than issue a decision, though, the high court dismissed the appeal, an unusuaI action that leaves the last lower-court ruling in place.

The three liberal justices along with Justices Brett Kavanaugh and Amy Coney Barrett formed the majority to dismiss the case.

The other four conservative justices dissented, faulting the federal appeals court in Atlanta for improperly analyzing the case and complaining that their colleagues should have ordered the appeals court to re-examine Smith's case.

The case is Hamm v. Smith, 24-872.

The Supreme Court is seen in Washington, Monday, May 18, 2026. (AP Photo/J. Scott Applewhite)