Consumer6 min read8/24/2026

Canceling an Online Purchase in Israel: Who Pays for the Return and How Much the Seller May Deduct

When canceling a distance transaction, the costs depend not on the delivery method but primarily on the reason for the return. If the buyer simply changes their mind, they usually pay for shipping and the cancellation fee; if the product is defective or does not match the order, the costs shift to the seller.

Numbers and facts

•14 days—the standard cancellation period for a distance purchase
•5% or ₪100—the lower maximum fee
•14 days—the deadline for a refund after notice
•Up to ₪100—possible home installation expenses
•4 months—the special period for protected groups

When a Purchase Is Considered a Distance Transaction

Under the Consumer Protection Law, 1981, a distance transaction is one concluded without the parties being jointly present—for example, online or by telephone—as a result of advertising or an approach by the seller. For goods, the cancellation period is 14 days from the date of receipt of the goods or from the date of receipt of the contract or document containing the mandatory information, whichever is later. Merely using a product purchased remotely does not eliminate the right to cancel, although a material deterioration in its condition may provide grounds for a claim for damages. The law provides exceptions for certain categories of goods, including perishable products and opened goods that can be recorded, copied, or reproduced.

Changed Your Mind—The Return Is Usually at Your Expense

If the product is in proper condition, matches the description, and was delivered on time, but the buyer decides to return it, the buyer pays for delivery back to the seller. The seller may deduct a cancellation fee: 5% of the price of the product or transaction, or 100 shekels—whichever is lower. This is the maximum fee, not an automatic charge of 100 shekels on every purchase. If equipment for providing a service was installed in the home, documented installation expenses may also be deducted, but no more than 100 shekels.

A Defect, Nonconformity, or Delay Changes Everything

If the cancellation is caused by a defect, nonconformity with the order, failure to deliver within the agreed period, or another breach of the contract, the seller may not charge a cancellation fee. The seller must also collect the product from the buyer’s home, so the cost of return delivery cannot be imposed on the customer. The money must be refunded within 14 days after receipt of the cancellation notice. In practice, it is important to state the specific reason in writing: not simply “I want to return it,” but, for example, “a different model was received” or “the product was not delivered within the agreed period.”

Deadlines for Services Are Different

An ongoing service, such as a gym membership or internet package, may be canceled within 14 days from the date of the transaction or receipt of the contract or document containing the mandatory information, whichever is later, even if provision of the service has already begun. For another one-time service, notice must be given at least two days that are not days of rest before the date on which it is to be provided. A booking for accommodation, travel, vacation, or entertainment may be canceled within the same 14-day period if more than seven days that are not days of rest remain before the service. For airline tickets, the fee is calculated separately for each ticket.

How to Document the Cancellation and Avoid Missing the Deadline

Cancellation may be communicated by telephone or in person, by registered mail, email, fax if available, and, for an online transaction, also online. It is best to retain the email, a screenshot of the form, the inquiry number, and confirmation of dispatch: the refund period begins when the seller receives the notice. A new immigrant, senior citizen, or person with a disability may, under certain conditions, cancel a distance transaction within four months if a conversation with the seller, including a continuous chat, took place before the transaction was concluded. The seller may request one document confirming the relevant status.

FAQ

Who pays for the courier when returning a product from an online store?

If the buyer simply changes their mind, they pay for return delivery. In the event of a defect, nonconformity, late delivery, or another breach of contract, the seller must collect the product at its own expense.

Can the store deduct both delivery costs and a 100-shekel fee?

When cancellation is not due to a breach by the seller, the buyer pays for the return, and the store may additionally deduct 5% of the price or 100 shekels—whichever is lower. If the reason is a defect, nonconformity, or failure to meet the delivery deadline, no fee is charged and the seller arranges the return.

Can an online product be returned if the packaging has been opened or it has already been used?

The mere fact that a remotely purchased product has been used does not eliminate the right of return. However, a material deterioration in its condition may lead to a claim for damages, and exceptions apply to certain categories of goods.

From which date is the 14-day purchase cancellation period calculated?

For goods, the period is calculated from the date of receipt of the goods or from the date of receipt of the contract or document containing the mandatory information, whichever is later. Therefore, the absence of a proper document may affect when the period begins.

How long does the seller have to issue a refund?

The seller must refund the money within 14 days from the date it receives the cancellation notice. To ensure the date can be proven, it is advisable to send the notice by a method that provides confirmation.

What to do next

First determine the reason for the return and check the date on which the product and documents were received. Send the seller a clear notice, retain confirmation, and separately document any defect, nonconformity, or delay; in the event of a dispute, you may contact the Consumer Protection and Fair Trade Authority.