Refund to Credit

Convert order refunds into store credit instead of card refunds

Instead of processing a traditional refund to the customer's payment method, you can convert refunds into store credit, keeping the value within your store's ecosystem.

Benefits of Refund to Credit

Benefit	Description
Retain Revenue	Money stays in your store
Faster Processing	Instant vs. 5-10 day card refund
Customer Convenience	Immediately usable
Reduced Fees	Avoid payment processor fees
Loyalty Building	Encourages return purchase

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When to Offer

Good Candidates

Scenario	Why Offer Credit
Size exchange	Customer will reorder
Minor defect	Partial credit as goodwill
Shipping delay	Compensation for inconvenience
Customer preference	They request store credit
Return without product	When item can't be returned

Consider Traditional Refund

Scenario	Why Card Refund
Customer insists	Respect their preference
Large amount	May prefer original payment method
Closing account	Won't shop again
Legal requirement	Some jurisdictions require option

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How to Process

From Customer Details

1. Open customer from Customers page

2. Go to Store Credit tab

3. Click Refund to Store Credit

4. Select the order

5. Enter amount (full or partial)

6. Add reason/notes

7. Confirm

From Orders Page

1. Go to Orders

2. Find the order

3. Click Refund to Credit

4. Enter amount

5. Confirm

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Refund Options

Full Refund to Credit

Convert entire order value to store credit:

Order Total: $150.00
Refund to Credit: $150.00
New Balance: +$150.00

Partial Refund to Credit

Refund specific amount:

Order Total: $150.00
Partial Refund: $50.00
New Balance: +$50.00
Order Status: Partially Refunded

Split Refund

Combine methods:

• Part to store credit

• Part to original payment

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Transaction Recording

When processing refund to credit:

Field	Value
Type	Refund Credit
Amount	+ Positive (credit)
Reference	Order number
Notes	Refund reason

Audit Trail

The transaction shows:

• Original order reference

• Refund amount

• Who processed it

• Timestamp

• Reason provided

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Customer Communication

Automatic Notification

Customer receives:

• Email confirmation of refund

• New balance amount

• How to use the credit

Suggested Message

"We've processed your refund of $50.00 as store credit, which has been added to your account. Your new balance is $75.00. This credit can be applied at checkout on your next order."

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Best Practices

Processing

✅ Do:

• Explain benefits to customer

• Get consent when possible

• Process promptly

• Document the reason

• Confirm with customer

❌ Don't:

• Force credit without consent

• Delay processing

• Skip documentation

• Forget to communicate

Offering to Customers

Good approach:

"I can process this as store credit, which will be available immediately. Would you prefer that, or a refund to your original payment method (which takes 5-10 business days)?"

Avoid:

"We only do store credit refunds." (unless policy clearly states this)

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Policies

Consider Having Clear Policy

• State options in return policy

• Clarify which situations get credit vs. refund

• Be consistent in application

• Train customer service team

Sample Policy Language

"Refunds may be issued as store credit or to your original payment method. Store credit is available immediately, while card refunds may take 5-10 business days to process."

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Reporting

Track Refund to Credit Metrics

Metric	What It Shows
Total Refund Credits	Amount converted to credit
Refund Credit Rate	% of refunds as credit
Redemption Rate	% of refund credit used
Average Time to Use	Days until credit is spent

Why Track

• Understand revenue retention

• Measure customer return rate

• Optimize refund policies

• Plan for credit liability