Refund to store credit on Shopify: the merchant guide

Why refund to credit

Refunding to original payment is cash out of your bank. Refunding to credit keeps the money in your store ecosystem and encourages repurchase. Retention lift is typically 30-50 percent on credit refunds versus cash refunds.

Step 1. Process the Shopify refund

In Shopify admin, open the order. If you are returning the goods to inventory, process the Shopify refund as a store credit rather than original payment method. On plans without native credit, skip to step 2.

Step 2. Issue the credit with our app

In Bulk Store Credit, add a single row to the CSV with the customer’s email and the refund amount. For one-off refunds you can also issue directly from the customer detail page.

Step 3. Confirm

The customer’s balance is updated and an email is sent with the new balance so they know credit is available for their next order.

Step 4. Mark the order

Add an internal note on the order tagging it “refunded to credit” for accounting clarity.

Bookkeeping

Refund to credit shows up as a liability on your books, not a cash outflow. Talk to your accountant about the right accounting treatment for your jurisdiction.