Shopify added the much needed feature to give store credit a first class citizen status within the admin interface. However most merchants are still oblivious to the goldmine that shopify store credit can bring in. Used correctly refunds that are leaving your bank account forever can be turn into a second sale. This guide will explain in detail what shopify store credit is, how it is dispensed, redeemed by customers and what your options are if you are not yet on the Shopify Plus plan.
We’re keeping it real. No theoretical rant about psychology of student retention. Just step-by-step advice and some blunt observations about what really works-and what doesn’t.
Floor comments. Shopify made native store credit available to Plus stores first and then added it to other plans. This option is not available in your Shopify admin? The app route below works on any plan.
What this guide covers
- What is Shopify store credit
- How to issue store credit natively
- Store credit vs refund
- How customers redeem it
- Apps if you are not on Plus
- FAQ
What is Shopify store credit
Shopify store credit is a customer-linked balance in your store currency that customers can spend at checkout like a gift card. The difference between store credit and a discount or refund is that the money never actually goes out of your bank. The difference between store credit and a gift card is that you can generate store credit directly from an order without having to print out a code for the customer to use.
Three core principles that power Customer Rewards: Per customer, Spendable at checkout, Tracked in customer profile.
How to issue store credit natively
- Open the customer profile in Shopify admin.
- Find the Store credit card in the sidebar.
- Click Add credit, enter the amount, pick a reason (goodwill, return, price adjustment).
- Save. The customer gets an email (if enabled) with the new balance.
- To issue credit from a return, open the order, click Return, and pick “Store credit” as the refund method.
That’s the whole process. No codes, no spreadsheets, or emails with “your coupon inside”!!
Store credit vs refund: when to use which
| Situation | Refund | Store credit |
|---|---|---|
| Product damaged in transit | Yes, plus apology credit | Optional extra |
| Customer changed their mind | Only if policy forces it | Preferred |
| Wrong variant shipped | Yes | Add bonus credit for friction |
| Price adjustment after sale | Refund the difference | Credit the difference (cheaper for you) |
| Subscription paused | No | Credit the unused cycle |
| Customer churned and angry | Refund | Do not try to retain with credit |
This is a quick rule of thumb for refund policy. When a customer is upset over something at your retail store, the best policy is to give a refund. When they’re upset at something outside of your control (a shipping company, weather, their own ignorance of sizes etc.) storing the item for a credit with a small bonus is better than a straight refund. Not always, but often enough that it’s worth remembering.
How customers redeem store credit
At the checkout stage customers will be given the option to use their store credit above the choice of payment method. This can be the full balance or a part balance, and once the partial balance has been processed on their card the remainder will be deducted from their store credit balance. A tick box toggle will appear above payment options to make this choice.
Two things to note: First, customer must be logged in to receive the store credit. If checking out as guest, it will not display. Second, store credit does not combine with gift cards on all checkout configurations. Check your specific store configuration before offering customers the option to combine both.
Apps if store credit is not in your admin yet
By default, not all plans may include store credit. If that’s the case, you may consider using an app that allows you to sync customer metafields or create a custom gift card that is tied to the customer. Look for apps that allow you to include these features.
- Attach a credit balance to a customer record, not a code
- Apply the balance automatically at checkout
- Track credit expiry (important for accounting)
- Issue credit from a return flow, not a separate screen
For a more in-depth look as to why store credit is better for retention than refunds read: store credit refunds: the smarter way to retain customers and revenue. Math included.
Related operations you will touch
Stored credit does not exist in isolation. Most merchants retrieve stored credit immediately following a return. In order to reduce returns due to misleading product images, merchant’s product pages should clearly depict the correct variant image. See Rubik Variant Images.
Listing all colours of the same product on one page (instead of on separate pages i.e. one per colour) drastically reduces the potential for customers selecting wrong variant before purchasing and is called Rubik Combined Listings. This feature is available on all plans and does not require and Shopify Plus account.
Sometimes store credit is not needed when the Product page is the culprit. Audit your product page in under a minute with our free Variant Image Checker tool and our Product Page Grader tool.
See Rubik in action
Want to see it in action before buying? Here’s the swatch and filter demo. Interactive, browseable. This video shows you where to find a full tutorial and detailed documentation. You’ll also see that both versions have free plans. Installation is 2 mouse clicks and takes 2 minutes.
“We’ve tried several solutions for managing variant images, but Rubik Variant Images stands out. Customers now see only the images that match their selection, which has noticeably reduced the ‘Is this the right color?’ support queries.”
Livspace Home, Rubik Variant Images reviews
FAQ
Is Shopify store credit available on all plans?
Native store credit has been introduced on Plus and increased since. Check your customer profile sidebar for your Store credit card. If you can’t see it you’ll need an app.
Does store credit expire?
Native store credit is perpetual and therefore considered a liability on your books (unless credit can expire). Most apps allow you to set expiry for stored credit. Research local laws and regulations to see if credit can expire.
Can I issue store credit for partial amounts?
Yes. Any amount can be issued. You can also credit part back to the original payment method and top up the rest.
Does store credit work for guest checkouts?
You need to have the customer logged in. This is by far the most common gotcha, so remind your store owners that by logging in the customer will be able to use their balance. Many stores have a lot of guest purchases.
Is store credit the same as a gift card?
Why can’t I give the store credit as a gift card? Store credit is a gift that is specific to a customer record and cannot be transferred. Gift cards are codes that can be given to anyone.
Can store credit be combined with discount codes?
Usually yes, so test on your store. Rules are generally checkout version and discount specific.
What is better for retention, refund or store credit?
Store credit wins when customer is neutral / slightly annoyed. A refund wins when customer is angry. Don’t try to win back a customer who wants to go to your competition.
