Deposit-refund system

A deposit-refund system (DRS), also known as deposit-return system, advance deposit fee or deposit-return scheme, is a surcharge on a product when purchased and a rebate when it is returned.

A well-known example is when container deposit legislation mandates that a refund is given when reusable packaging is returned.

While most commonly used with beverage containers, DRS can be used on other materials including liquid and gaseous wastes.

[2] A DRS is used on products such as batteries, tyres, automotive oil, consumer electronics and shipping pallets.

There are three potential advantages of a DRS: it reduces illegal dumping by giving a financial incentive, it makes monitoring and enforcement easier, and evading the costs is difficult.