As holiday shopping increases, major retailers like REI, Target and Amazon are revamping their return policies to combat fraud.

REI confirmed to ABC News on Wednesday that a small portion of frequent visitors will be barred from exchanges or returns.

“We are proud of our generous return policy,” the outdoor retailer said in a statement. “To ensure this benefit is available to as many of our members as possible, we recently updated our policy to provide an exception for members who have abused it in the past.”

The statement continues: “In recent years, we have tried to curb this behavior of some members through targeted warnings and probation periods. Unfortunately, these tactics have not proven effective.”

The new exception to the return policy affects less than 0.02% of members who demonstrate a pattern of policy abuse, with an average return rate of 79% and $1,400 in used returns per year, the statement continued.

REI’s update comes on the heels of Target recently reserving the right to deny refunds due to suspected fraud and Amazon charging processing fees for high-return items in June.

In an interview with “Good Morning America” ​​that aired Thursday, retail analyst and financial expert Hitha Herzog said returns fraud has cost retailers billions of dollars, prompting them to take action.

“When customers buy a product and return it, it ends up spending more money on the product and actually ends up costing the retailer more money per product sold,” she explained. “Retailers want to reduce these costs. So they are now turning to the customer to cover these costs.”

The National Retail Federation estimates that more than $100 billion will be lost to return fraud in 2023 alone. Common tactics include “cloakrooming” (returning used items), fake receipts for stolen goods, and exchanging high-value items for counterfeits.

With holiday shopping underway, consumers rely on flexible return policies to purchase gifts with confidence.

However, as returns fraud increases, retailers are imposing stricter rules, giving them the ability to reject suspicious returns. That’s why it’s more important than ever for shoppers to understand each store’s return policy to avoid surprises.

“Retailers don’t want to lose more sales than necessary, especially during the Christmas season,” added Herzog. “Customers shouldn’t worry, but they should think carefully about what they buy and what the return policy is.”

ABC News’ Becky Worley points out that while these policy changes appear to be aimed at large companies, the impact of return fraud affects all consumers.

“The billions of dollars in losses they suffer from this fraud will ultimately be passed on to you and me, the consumers. So maybe this will help keep our costs a little lower,” she said.

As Veterans Day approaches, retailers like Bed Bath In addition, Dell and Target are offering discounts, particularly for active and retired military personnel, Worley said, adding that sales are also starting for the general public, although they may not be as deep as Black Friday discounts.

“But if you’re trying to spread your purchases across multiple paychecks or need something right now, it’s worth taking a look at stores that are pushing these holiday sales earlier and earlier, and they all fit together,” Worley said.