Reloop Resources

Handling fees in deposit return systems

A convenient and accessible redemption network is crucial for high return rates in a deposit return system (DRS).

The ideal model is a retail-based collection system, but a hybrid model with privately owned redemption centres alongside retail stores is the next best option. In both models, retailers and/or redemption centres are typically paid a handling fee for their take-back services.

These fees serve as compensation for the expenses involved in collecting and sorting container returns. They cover costs such as additional labour for manual collection or the purchase and leasing of reverse vending machines for automated collection. Handling fees play a vital role in the success of deposit systems, especially in jurisdictions where retailers are not legally required to accept empty containers.

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