This article explains the mechanics behind Onward Protect — how protection is activated, what happens when something goes wrong, and how claims are resolved.
The Protection Premium
When a customer adds Checkout+ to their order, a small protection premium is added to their cart. This premium is what activates coverage for their order.
How It's Calculated
The premium is a percentage of the cart value. The exact percentage is set during your Onward onboarding and depends on your store's category and configuration. It appears as a line item in the cart (the "Checkout+" or "Package Protection" product on Shopify).
Price Tiers
The premium uses price tiers — as the cart value increases, the premium adjusts in steps. There's also a minimum and maximum premium amount so the cost stays reasonable for both small and large orders.
What It Covers
A single premium covers the entire order. All items in the order are protected against the covered causes (lost, stolen, damaged, etc.), up to the full insured value.
When Protection Is Active
An order is considered protected when:
The customer opted in to Checkout+ during checkout (the premium line item is in the order), or
The merchant purchased protection on behalf of the customer (merchant-funded protection)
Protection remains active for the duration of the claim submission window — typically a set number of days from when the order was placed or fulfilled. After the window closes, new claims can no longer be filed for that order.
The Claim Process
When something goes wrong with a protected order, here's what happens:
1. Customer Files a Claim
The customer clicks the claim link in their Onward welcome email (or navigates directly to the claims page). They go through a guided process:
Find their order — Enter order number and email or zip code.
Describe the issue — Select what went wrong (damaged, stolen, stuck in transit, etc.).
Select items — Choose which items were affected.
Upload evidence — Provide photos if applicable (required for damage, missing items, wrong items).
Choose resolution — Pick their preferred resolution: reorder, refund, or store credit.
Confirm details — Review shipping address and submit.
Sample Claims Flow:
2. Claim Is Resolved
Claims are resolved in one of several ways:
Resolution | What Happens |
Reorder | A new Shopify order is created with the same items, fully discounted. The customer receives a new shipment at no extra cost. |
Refund | The customer's original payment method is refunded. Processing typically takes 5–7 business days. |
Store Credit | A Shopify gift card is issued to the customer. Some stores offer a bonus percentage on store credit (e.g., 10% more than a cash refund). |
3. Customer Is Notified
After resolution, the customer receives an email confirming the outcome — whether it's a reorder confirmation, refund notification, or store credit with a discount code.
What Happens Behind the Scenes (Merchant Perspective)
Premiums are collected on each protected order and tracked in your Onward billing.
Claims are paid out from Onward when resolved — the merchant is credited for the cost of reorders, refunds, or store credit.
Revenue share — You earn a percentage of the premiums collected. This is settled on a regular billing cycle.
Settlements — Onward invoices net out premiums collected minus claims paid out, reward credits, and other charges.
You can view all of this in your Onward merchant dashboard under the billing and orders sections.
Merchant-Funded Protection
In some configurations, merchants can purchase protection on behalf of their customers. This means every order is automatically covered without the customer needing to opt in. The merchant pays the premium, and customers still get the full protection and claims experience.