Yep - you’re right, but we don’t only sell custom items, we sell both (I would estimate 30% custom and 70% not).
We sell about 5,000+ items on an average month (15,000+ at xmas time), so we set up the rule to auto returnless refund anything less than £12 because it’s cheaper for us than allowing the auto feature to generate a label costing us £3.95. However, when we set this up, we assumed custom would not be included because they are supposed to be exempt, but the rule we set appears to override the exempt status and returnless refunds our custom items less than £12 too.
Given a choice when our cheap (non-custom) items were going to be auto authorised at a cost of £3.95 or allowing the customer to keep the item, it was a no brainier to set the rule - it would save us a lot of money and is better customer service. But now we are stuck applying the rule to custom too. We accept it because it still works out cheaper than opening the floodgates for the cheap items we sell, but fundamentally, the rule system is broken and adding a rule should not override a policy, yet it does.
Hopefully that explains it a bit more fully and makes it understandable why we are hoping this means a rule update when this comes into effect ;0)