Instant Exchanges are a powerful feature offered through Route Returns that allows your customers to receive their exchange items faster, without waiting for the original item to be returned first.

When setting up your returns experience through Route, you have the option to enable or disable Instant Exchanges. This choice impacts how quickly customers can get their desired exchange items and how you manage the financial risk associated with returns.

How Instant Exchanges Work

Here’s a step-by-step breakdown of what happens when a customer opts for an Instant Exchange:

1. Customer Selects Exchange
   During the return process, the customer chooses to exchange their item for a new one (e.g., a different size or color).
2. Payment Authorization
   The system offers the customer the ability authorize a hold on their credit card for the value of the exchange item(s) to get the items sooner. This is not a charge. It’s a temporary hold that ensures funds are available if needed.
3. New Item Ships Immediately
   Once the authorization is complete, the exchange order is completed right away and set to be fulfilled - even before the original item has been returned. This speeds up the customer experience significantly.
4. Return Evaluation
   When the original item is returned, your team inspects it to confirm it’s undamaged and matches the return policy criteria.
5. Hold is Cleared or Captured
   • If the return is accepted: The authorization is released, and the customer is not charged.
   • If the return is not sent back, is damaged, or shows signs of fraudulent activity: You are able to capture the full authorized amount to cover the loss.
   • The authorized amount will be automatically captured if the return item has not been sent back and the hold is due to expire.
   • Until the return item is returned or the authorized hold is captured, Shopify will report the exchange as 'unauthorized' or 'unpaid.'

How to Identify Instant Exchanges in the Merchant Dashboard

As a merchant, you’ll be able to see whether a return includes an Instant Exchange directly in the return detail screen in your Route dashboard.

Each return that qualifies as an Instant Exchange will be clearly labeled, so you can quickly identify which orders have an active payment authorization in place. This visibility helps you:

• Monitor exchange fulfillment timelines
• Know when you’re protected by an active hold
• Decide whether to capture funds in cases of non-return, damage, or fraud

This insight is especially helpful for customer support teams and warehouse staff handling returns and exceptions.

Capturing Remaining Authorized Amount

If an Instant Exchange was initiated but the customer ends up keeping the item (e.g., they changed their mind or never sent the return back), merchants can easily capture the remaining authorized amount. To do this, simply cancel the return associated with the exchange. Once the return is canceled, the system will automatically assume that the original item is not being returned and will charge the full outstanding amount to the customer. This ensures that merchants are paid in full for items that are kept, without requiring any manual intervention beyond canceling the return.

Benefits for Merchants

• Faster resolution for your customers leads to higher satisfaction and fewer support tickets.
• You retain control over returns by deciding whether to capture the funds if issues arise.
• Reduced friction in the exchange process helps build customer loyalty and trust.

Benefits for Customers

• Get your exchange item faster. No need to wait for the return to be processed first.
• Enjoy a smooth and proactive return experience.
• Only pay if the return isn’t completed or accepted.

Should You Enable Instant Exchanges?

Enabling Instant Exchanges can be a great option if:

• You want to provide a premium return experience.
• Your fraud and damage rate is low.
• You’re comfortable with the hold-and-capture model for financial protection.

If not, you can leave the feature disabled and continue to process exchanges after the returned item has been received and verified.