Store Credit Shopify: How to Issue Store Credits

Store Credit Shopify: How to Issue Store Credits

In this blog, we explore the concept of issuing store credits in Shopify, a practice that can significantly enhance customer satisfaction and loyalty. Store credits are a versatile tool for online retailers, offering a flexible solution for handling returns and encouraging repeat business. This guide will walk you through the process of setting up and managing store credits in your Shopify store. We'll cover the basics of what store credits are, how they can benefit your business, and step-by-step instructions on how to issue them effectively. Whether you're dealing with returns, rewarding customers, or simply looking for a new way to boost your store's appeal, this blog will provide you with the necessary insights to implement store credits smoothly and efficiently.

What are Shopify Store Credits?

Shopify store credits are a form of internal currency used within Shopify stores. They function as an alternative to refunds or as a means of customer compensation. When a customer returns an item or needs to be compensated for some reason, instead of refunding the money, store owners can issue store credits. These credits can then be used by the customer for future purchases on the same Shopify store.

This system offers a flexible way for store owners to handle returns and maintain customer satisfaction without directly impacting cash flow. It encourages customers to continue shopping within the same store, potentially leading to repeat business. Store credits are particularly useful for managing returns and exchanges efficiently, and they often help in building customer loyalty by offering a convenient and immediate value to the shoppers.

How Does Store Credit Work?

Store credit in a retail context typically works as a system where customers are given credit instead of a direct refund or cash. Here's a breakdown of how it generally functions:

Return or Issue Trigger

How Does Store Credit Work

The process starts when a customer decides to return a product or when there's an issue with their purchase. Instead of refunding the money, the store offers credit.

Issuing the Credit

How Does Store Credit Work

The store credits the customer's account with an amount equal to the value of the returned item or as compensation. This credit is usually stored digitally within the customer's account in the store's database.

Customer Notification

Shopify Store Credit

The customer is notified about the credit, often via email or a message on their account dashboard, detailing the amount credited and any terms of use.

Using the Credit

use shopify store credit

The customer can use this credit the next time they make a purchase. During checkout, the option to use store credit is typically available. If the purchase amount exceeds the credit, the customer pays the difference. If it's less, the remaining credit stays in their account.


Some store credits come with an expiration date, post which the credit becomes invalid. The terms of the credit use, including the expiration date, are usually communicated to the customer.

Refund Policy

The specifics of how store credit can be used, whether it can be combined with other offers, or if it's transferable, depend on the store's policies.

How to setup Store Credit on Shopify?

Setting up store credit on Shopify involves a few steps, and you can choose from different methods depending on your preferences and requirements. Here's a simplified guide:

  1. Using Gift Cards as Store Credit:
    • Log in to your Shopify account and navigate to "Products" > "Gift Cards."
    • Choose "Issue gift card" and customize the details, including selecting the recipient customer.
    • Once you're done, activate the gift card. This gift card will function like regular currency, allowing your customers to make purchases from your store.
  2. Creating Store Credit Codes:
    • In your Shopify admin panel, go to "Discounts."
    • Select "Codes" and click on "Create code."
    • Choose the "Store credit" option and enter the desired amount.
    • Customize the code name and set usage limits if needed.
  3. Issuing Store Credit to Customers:
    • Go to the customer's order details page in your Shopify admin.
    • Click on "More actions" and select "Issue store credit."
    • Enter the store credit code and specify the amount to issue.
    • Add any necessary notes for the customer.
  4. Configuring Store Credit Redemption Rules:
    • In your Shopify admin panel, navigate to "Settings" > "Payment providers."
    • Customize redemption rules such as minimum purchase amounts, expiration dates, and whether store credit can be combined with other discounts.
  5. Communicating Store Credit Policies:

Clearly outline terms and conditions for store credit on your website, including redemption instructions and any limitations.

  1. Tracking and Managing Store Credit:

Utilize Shopify's reporting capabilities in the "Reports" section under "Finance" to monitor store credit usage and track customer balances.

How to issue Store Credits on Shopify?

Using store credit on your Shopify store is a straightforward process that enhances the shopping experience for your customers. Here's how it typically works:

  1. Redemption at Checkout: When a customer has store credit in their account, they can apply it to their purchase during the checkout process. The option to use store credit appears as a payment method.
  2. Applying Store Credit: The customer selects the store credit option, and the available credit balance is displayed. They can choose to use all or part of their credit for the purchase. If the total cost exceeds the store credit amount, they can pay the difference using other payment methods.
  3. Partial Use and Balance: If a customer doesn't use the entire store credit in one purchase, the remaining balance stays in their account. This balance can be used for future purchases.
  4. Tracking Store Credit: Customers can view their current store credit balance in their account section on your Shopify store. This helps them keep track of their credit and plan their purchases accordingly.
  5. Terms and Conditions: Customers should be aware of any terms associated with the store credit, like expiration dates or specific product exclusions. These terms are usually outlined in the store's policy or during the issuance of the credit.


In conclusion, issuing store credits on Shopify is a valuable strategy for enhancing customer loyalty and providing a flexible solution for returns and rewards. By using the gift card feature or creating custom discount codes, store owners can easily manage store credits. It’s essential to clearly communicate the terms of use to customers and to efficiently track and manage these credits. Store credits not only encourage repeat business by giving customers a reason to return, but they also streamline the refund process, making it a win-win for both the store and its customers. Implementing store credits is a straightforward way to maintain customer satisfaction and foster ongoing engagement with your Shopify store.


Is store credit the same as a refund?

No, store credit is not the same as a refund. While a refund returns the original payment to the customer, store credit offers them an equivalent value to be used for future purchases within the same store. Store credit keeps the funds within the business and encourages repeat patronage, whereas a refund removes the funds from the business altogether.

How to do Shopify bulk issue store credit?

To issue store credit in bulk on Shopify, you'll typically need to use a third-party app since Shopify doesn't have a built-in feature for this specific function. Here's a general approach:

  1. Choose a Third-Party App: Select an app from the Shopify App Store that allows for bulk issuing of store credit, such as '' or 'FreshCredit'.
  2. Install and Set Up the App: Install the app to your Shopify store and configure it according to your store credit policies.
  3. Bulk Issue Store Credit: Use the app’s interface to issue store credits to multiple customers at once. This could involve uploading a customer list and assigning credit amounts to each.

What is store credit refund?

A store credit refund is an alternative to a traditional money-back refund where customers receive credit equal to the value of the returned item. This credit can be used for future purchases within the same store. It's often offered as a flexible option for handling returns, encouraging customers to shop again while helping businesses retain sales revenue.