A deposit-refund system (DRS), also called a deposit-return system, advance deposit fee, or deposit-return scheme, is a system that adds a small extra cost to a product when it is bought. This cost is returned to the buyer when the product’s packaging is returned. For example, some laws require that a refund be given when reusable packaging, like bottles, is returned. A DRS is a tool used to solve problems caused by how products affect others, similar to a tax that corrects harmful effects, but with one key difference: the extra cost is returned to the buyer after the product is returned. This encourages people to properly dispose of items.

Most DRS systems are used for beverage containers, but they can also be used for other materials, such as liquids, gases, and items like batteries, tires, car oil, electronics, and shipping pallets.

Three benefits of a DRS include: reducing illegal dumping by offering a financial reward for returning items, making it easier to monitor and enforce rules, and making it harder for people to avoid paying the extra cost.

One possible downside is that a DRS may focus on collecting single-use beverage packaging, which could reduce efforts to return packaging that is used multiple times, such as in Germany.

A DRS is based on the idea of Extended Producer Responsibility, which means that companies are responsible for the full life cycle of their products.

In February 2025, the European Union introduced the Packaging and Packaging Waste Regulation (PPWR). This rule will start on August 12, 2026, and is expected to lead to more DRS programs to meet its goals.

The United Kingdom will begin a Deposit Return Scheme in October 2027, known as "Exchange for Change."

A DRS can be either voluntary or required by law.