Handling returns under warranty and the CPA
How Achekam's Retail pack logs a South African return, gathers proof and photos, records the decision, and leaves the refund to the till or a credit note.
By Achekam · · 4 min read · For Retail businesses in South Africa
Launching soon. The Industry CRM add-on described in this article is launching soon. This article describes it as it will work at launch.
A kettle stops working a few weeks after it was bought. The customer is at the counter with the box under one arm, saying the Consumer Protection Act entitles them to their money back. One staff member would refund on the spot; another would send them to the manufacturer. Whichever happens, it depends on who is on shift.
Inconsistent answers cost a South African shop twice: in refunds that should not have been given, and in customers lost over refunds that should have been. The fix is a single route that every return follows, with the evidence written down and the decision made by someone with the authority to make it.
Achekam's Industry CRM, with the Retail & e-commerce pack, gives returns that route. This article walks through it.
Every return starts as a record
The pack's return workflow begins by logging the return. Before anyone decides anything, write down:
- the customer and how to reach them;
- the item, with its serial number if it has one;
- when and where it was bought, as far as the customer knows;
- what the customer says is wrong, in their words;
- what the customer is asking for.
Logging first does two things. It stops a decision being made at the counter under pressure, and it creates a history. A product that keeps coming back shows up in the records long before anyone notices it on the shop floor.
Proof of purchase and photographs
Next, the workflow asks the customer for proof of purchase and photos. A workflow step in the Industry CRM can send the customer a request for documents, and the customer's answer moves the task along, so nobody has to remember to chase.
Useful evidence includes the till slip or invoice, or a bank or card statement line where the slip is lost; photos of the fault and of any damage to the casing or packaging; and, for appliances, a photo of the rating plate or serial number. Asking for this in writing, rather than at the counter, also gives a customer time to find a receipt they thought was gone.
Inspecting the item against two yardsticks
The pack then has the item inspected against the warranty and against the Consumer Protection Act period. These are two separate measures: what the manufacturer or your shop promised, and what the Act allows the customer. What each period is, and how they apply to your range, is something to settle with your legal adviser when you write your returns policy, not something to work out at the counter. The Act's side starts with section 56 of the Consumer Protection Act, the implied warranty of quality, which sets when a consumer may return defective goods for repair, replacement or a refund.
During inspection, record what you found: whether the fault is confirmed, whether there are signs of misuse, and whether the item was bought within the relevant period. A decision with the inspection notes attached is much easier to defend if the customer disagrees.
Refund, exchange, repair or rejection
The workflow ends by recording one of four outcomes:
| Outcome | When it fits | What happens next |
|---|---|---|
| Refund | Fault confirmed and the customer wants their money back | Refund at the till, or a credit note for an invoiced sale |
| Exchange | Fault confirmed and a replacement is available | Exchange at the till, or a credit note and a new sale |
| Repair | The fault can be fixed and the customer agrees | Item sent for repair; no money moves yet |
| Rejection | Outside the relevant period, misuse, or fault not found | Reasons given to the customer in writing |
A repair needs its own follow-through. Record where the item went, the repairer's or supplier's reference and when it is expected back, and tell the customer in writing what will happen and roughly how long it may take. When it comes back, test it before handing it over, and note the result on the record. If the same item returns with the same fault, that history will shape the next decision.
A rejection is still a decision that should be explained. Tell the customer what was inspected, what was found and why the claim does not succeed, and keep that letter with the record.
Where the money actually moves
The Retail pack never rings up a sale, and it does not pay out refunds itself. The money side happens in one of two places.
For goods sold at the till, a supervisor or manager refunds all or part of the original sale with a reason. The refund is its own document linked to the sale, and the goods go back into stock. A faulty item should then be moved out of sellable stock, because the refund will have counted it back in. The detail is in refunds, voids and store credit at the till.
For goods sold on an invoice, a credit note is issued from the invoice it corrects, in full or for the lines concerned, and posted to the ledger. There is no credit note without an invoice, so a till sale is always corrected at the till.
Keeping decisions consistent
- Name the people who may decide returns, and keep that list short.
- Put your returns policy in writing, approved by whoever advises you on the Act, and give staff the same copy.
- Never let the person who sold the item be the only person who decides on its return.
- Read through rejected claims every month to check they were handled the same way.
The same thinking applies to discounts and other approvals at the till; setting cashier discount limits covers it.
Write down who decides returns, what evidence you ask for, and where the money is handled. A clear route turns the customer at the counter with the kettle from an argument into a process both sides can follow.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
