Billing and Payments for Shipping Protection and Return Care
Overview
This article explains how billing and payments work for AfterShip's Shipping Protection and Return Care services. You'll learn how shopper-paid fees are collected and distributed, and how the monthly invoicing process works, including fee structures, balance settlements, and which orders are included in each invoice.
Is Shipping Protection or Return Care charged to merchants?
No. Both Shipping Protection and Return Care are free for merchants. This is because Shopify operates on a closed-cart system, the full revenue from each sale goes directly to the merchant and cannot be split among multiple parties. To collect the fees that shoppers pay for Shipping Protection and Return Care, AfterShip charges the credit card connected to your account and then distributes the amounts accordingly.
Fees
1. How much does Return Care cost?
Return Care is charged at $1.99 per order.
2. How much does Shipping Protection cost?
AfterShip Protection charges the lowest premium of $1.5 for every $100 order value. Here are some examples:
For example,
- For an order with a total value of $99, the premium charged will be $1.5.
- For an order with a total value of $101, the premium charged will be $2.
- For an order with a total value of $199, the premium charged will be $2.
Note:
1. If your claim ratio exceeds a specific percentage, the premium will be adjusted accordingly as the claim ratio increases by the insurance company.
2. The initial return care fee will be adjusted according to your order and return.
Invoice and Payment
1. When will I receive my invoice?
AfterShip sends invoices at the beginning of each month. Please review your invoice and ensure payment is made on time.
2. What does the invoice include?
The invoice consolidates Return Care fees, Shipping Protection premiums, and any approved claim reimbursements into a single amount to minimize bank transaction fees.
Item | Service | Flow | Additional information |
|---|---|---|---|
Return Care fee | Return Care | Merchant > AfterShip | If you have a revenue-sharing Return Care agreement with AfterShip, the Return Care fee will be reflected as a credit in your invoice. |
Shipping Protection premium | Shipping Protection | Merchant > AfterShip | The Shipping Protection premium represents the fee collected from shoppers at checkout. Merchants need to transfer this to AfterShip the following month, and AfterShip will forward it to the insurance company. |
Claim paid | Shipping Protection | AfterShip > Merchant | Once a claim is approved and paid by the insurance company, AfterShip transfers the reimbursement to the merchant the following month. |
3. What happens if my invoice total is positive or negative?
- Positive balance: If the total invoice balance is positive, AfterShip will charge the final amount from your connected credit card at the beginning of the month.
- A 3% transaction fee will be applied to the invoice total.
- Negative balance: If the total invoice balance is negative, AfterShip will transfer the amount to you via PayPal or Stripe credit. You can choose based on your preference:
Method | Transaction Fee | Notes |
|---|---|---|
PayPal | 3% | PayPal will deduct this fee from the total value. This fee is borne by the merchant, so they will receive slightly less than the full balance owed to them. |
Stripe Credit | None | Stored as virtual credit that can offset future invoices, reducing the amount merchants need to pay. Merchants can request the AfterShip team to transfer your Stripe credit balance to PayPal at any time. |
4. Are all orders included in the invoice?
- Not all orders are billed on the invoice.
- Shipping Protection premium is charged only when the coverage becomes “Active” during the month (i.e., the order is paid and fulfilled).
Example:
- If the coverage is purchased on July 20 and becomes active on July 21, AfterShip will charge the premium at the beginning of August.
- If the coverage is purchased on July 30 and becomes active on August 1, AfterShip will charge the premium at the beginning of September.
- Return Care fee is charged when the order is placed. Orders that are placed and canceled within the same month will not appear on the invoice.
Example:
- If an order is placed on July 30 and canceled on the same day, AfterShip will not charge the Return Care fee.
- If an order is placed on July 30 and canceled on August 5, the Return Care fee has already been charged. In this case, the fee will not be refunded to the merchant for the canceled order.
Updated on: 18/03/2026