Milton Keynes is hotspot for people seeking refunds, survey reveals

New data from fintech company Paymentsense shows small businesses in the city are each facing an average of more than £265 in refunds every month.

Nationally, shoppers return a huge £7 billion purchases every year. On top of this, cash use is declining and Buy Now Pay Later (BNPL) is increasing by and set to double by 2023.

"So, with consumer behaviour changes and the decline of cash, it's no doubt that refunding goods has become easier, but are people doing it honestly?" said a Paymentsense spokesman.

One self-confessed serial refunder in Milton Keynes made a shocking revelation into how the system could be abused.

She admitted:“I always say my parcels haven’t been delivered. I look through the hole in my door and if the courier doesn’t take a picture of the item to prove it’s been delivered, I would just say I didn’t receive the item. I don’t make it obvious though, maybe one in every four parcels I get I will try and get a refund for. Works every time.”

Bolton is the highest area for refunds, followed by Southall, Reading and Oxford.

Shoppers were found to be seeking the most refunds from home and furnishings businesses. Healthcare experienced the least returns during the Covid pandemic.

Jon Knott, Head of Customer Insights at Paymentsense said: “With the pandemic still restricting access to high street stores, consumers have turned to online shopping. With this increase, naturally, we’ve seen more refunds."

"Many ecommerce retailers have made their returns process easier– through couriers, drop off points and signing up to Buy Now, Pay Later schemes. So shoppers could be buying more, knowing that they can send items back at the click of a button.

However, Jon said refunding is not without its pitfalls.

"Shoppers need to be aware that refunds aren’t processed and deposited straight away. It’s always worth giving a company’s refund policy a read before purchasing, to avoid overspending before payday, or being left with unwanted vouchers.”