# Policies

The settings here dictate the exact rules the AI must follow when handling core merchant tasks like Cancellations, Replacements, and Refunds & Returns.

#### **Video Guide:**

{% embed url="<https://player.mux.com/NQ1R3az01grFuvig47C0200800KxRR1vy000100iLCmfRIunjc>" %}

<details>

<summary>Cancellation rules</summary>

* **Replacement allowed**: allows the AI to offer a replacement product.
* **Only for damaged or wrong items**: blocks “changed my mind” replacements.
* **Customer keeps item**: no return needed when sending a replacement.

</details>

<details>

<summary>Replacement rules</summary>

* **Replacement allowed**: allows the AI to offer a replacement product.
* **Only for damaged or wrong items**: blocks “changed my mind” replacements.
* **Customer keeps item**: no return needed when sending a replacement.

</details>

<details>

<summary>Refund rules</summary>

* **Refunds allowed**: allows the AI to process refund requests.
* **Refund window (days)**: number of days after purchase a refund is allowed. Example: `30`.
* **Allow after order is shipped:** decide if the AI is allowed to process refunds once an item has left the warehouse
* **Allow after order delivered:** decide if the AI is allowed to process refunds once an item has left the warehouse or reached the customer.
* **Require return for full refund:** ensure customers send the item back before they get their full money back.
* **Partial refunds:** allow the AI to offer a partial refund (customer keeps the item). You can set a single percentage or use Graduated Tiers (e.g., the AI offers 20%, then 30%, then 40% if the customer keeps declining).

</details>

<details>

<summary>Returns rules</summary>

* **Returns accepted:** allow physical returns and set how many days after delivery a return is accepted.
* **Return window:** set number of days after delivery to allow and accept return
* **Return address:** provide the shipping address for returns. If left empty, the AI will direct the customer to support.
* **Consumable / Hygienic returns:** prevent the AI from accepting returns on opened health, beauty, or hygiene products.

</details>

<figure><img src="/files/p8gDObpEZOGe2ZnAvJci" alt=""><figcaption></figcaption></figure>


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