Exchange for Change has now confirmed the Return Handling Fee (RHF) that retailers will receive under the UK Deposit Return Scheme (DRS), launching in October 2027.

The structure is simple on paper but has important implications for how stores will earn from returns.

• Manual returns: 3p per container
• RVM (automatic returns):
  • 5p per container up to 225,000 per year
  • 1.3p per container above that level

When converted into daily volumes, the key threshold sits at roughly 620 containers per day. Above this point, the income per additional container drops significantly.

This makes it essential for retailers to understand not just the fee, but how it performs in real store conditions.

What the threshold looks like in real life

The annual cap of 225,000 containers equates to:

Below this level, every container is paid at 5p.

Above this level, only the additional containers drop to 1.3p.

What a typical store earns — low to mid volumes

For many convenience stores, volumes will sit comfortably within the 5p band.

At this stage, the model is simple: more containers directly translate into more revenue.

When the second tier kicks in

Once a store exceeds ~625 containers per day, the economics change.

Although volumes increase significantly, the additional revenue becomes marginal because the extra containers are paid at a much lower rate.

Higher volumes — diminishing returns

This effect becomes even clearer at higher throughput levels.

From 750 to 1000 containers per day:

• Volume increases by 250 containers
• Monthly income increases by only ~£100

The drop from 5p to 1.3p significantly reduces the incremental value of higher volumes.

What this means for retailers

The handling fee has been designed to cover the operational cost of running a return point — including equipment, space and handling.

In practice:

• Low to medium volumes, with one RVM: good cost recovery
• Higher volumes, with more RVMs: reduced marginal return
• Overall: limited upside if relying on the RHF alone

For many stores, this means the machine is primarily a compliance requirement rather than a profit driver.

Moving beyond compliance: turning the RVM into a profit centre

The key opportunity sits outside the handling fee itself.

A standard RVM generates revenue only from the RHF.

A connected RVM, with a media screen, opens a second and more scalable revenue stream.

By integrating a digital display, retailers can:

• Sell advertising space (local and national brands)
• Promote in-store offers and supplier campaigns
• Monetise the increased footfall driven by DRS

This changes the model:

• RHF covers operational cost
• Media revenue generates margin

Instead of being purely a compliance cost, the return point becomes a revenue-generating asset within the store.

Final takeaway

The RHF gives retailers clarity and a baseline income, but it also highlights the limits of the model.

Stores that treat DRS as a compliance exercise will recover costs.

Those that leverage the customer interaction it creates will unlock a new revenue stream.