How to Issue Store Credit and Refund to Store Credit on Shopify

Illustration of a refund receipt with Store credit selected instead of Original payment, a blue store credit card showing $48.00, and a path back to a storefront with an OPEN sign

Updated September 2026

Shopify has store credit built in. You can refund an order, a return or an exchange to store credit instead of the customer's card, split a refund between the two, or add credit to a customer's profile by hand as a goodwill gesture. The balance lives on the customer's account, and they spend it at checkout by signing in and choosing Apply store credit.

This guide covers both ways of issuing it, what has to be in place first, how customers use it, how it compares with gift cards, and what to check when a customer says their credit isn't there.

The short version

  1. Make sure your store uses customer accounts (the current version, not legacy accounts) and that Store credit is switched on under Settings → Customer accounts.
  2. To refund to store credit: open the order, click Refund, choose Store credit as the refund method (or both methods, with an amount for each), optionally set an expiration date, and click Refund.
  3. To issue credit without an order: go to Customers, open the customer, click Edit in the Store credit section, choose Credit, enter the amount, then Review changes.
  4. The customer signs in at checkout and applies the credit in the payment section.
How a Shopify store credit refund works: the customer returns an item, you refund it to store credit, the balance sits on their customer profile, and they apply it at checkout when signed in 01 · RETURN An item comes back Create the return on the order 02 · REFUND Choose store credit Original payment Store credit Or split it between both, plus an optional expiry date 03 · BALANCE It sits on their profile STORE CREDIT $48.00 Visible to you and to them in their account 04 · SPEND They sign in and apply it PAYMENT Apply store credit $48.00
Store credit stays with the customer's account until they come back and use it.

Before you start: what store credit needs

  • Customer accounts, not legacy accounts. Store credit isn't available with legacy customer accounts, because the customer has to sign in to see and use their balance. If you still use legacy accounts, switching is the first job.
  • The setting switched on. Go to Settings → Customer accounts and turn on Store credit. On Shopify POS you can turn store credit off as a payment method separately, but it can't be on in POS while it's off online.
  • Staff permissions. Refunding to store credit needs the Refund to store credit order permission (store owners have it). Issuing or editing credit on a customer profile needs the store credit permissions for customers.
  • A check on fees. For stores created on or after May 12, 2025, orders paid with store credit are charged third-party transaction fees on the store-credit portion, unless you're on Shopify Plus with Shopify Payments activated. Older stores aren't affected by this rule.

How to refund an order to store credit

  1. From your Shopify admin, go to Orders and open the order.
  2. Click Refund.
  3. Enter the quantities or amount you're refunding, and choose whether to restock.
  4. Choose where the refund goes: the original payment method, Store credit, or both. If you choose both, you can edit the amount for each.
  5. Optionally, set an expiration date for the credit.
  6. Leave Send a notification to the customer checked so they know the credit exists, then click Refund.

You can use store credit for a full refund, a partial refund, a returned item or a canceled order. It works regardless of how the customer originally paid.

Illustration of the refund screen for an order in Shopify admin, with the refund split between the original payment method and store credit, an optional expiration date, the Send a notification to the customer checkbox and the Refund button ORDERS · #1042 Refund Linen shirt Returned · 1 of 1 $48.00 REFUND TO Original payment $18.00 Store credit $30.00 EXPIRY (OPTIONAL) Sep 30, 2027 Send a notification to the customer Refund total $48.00 $18.00 to card · $30.00 to store credit Refund $48.00
An illustration of a split refund (not a screenshot): part to the card, the rest to store credit with an expiry date.
Worth knowingA refund can't be canceled or reversed once you start it from the admin. If you refund to store credit and the customer later asks for their money back, you can over-refund the order to the original payment method (that needs its own staff permission), but the store credit you already issued stays on their profile. Remove it by hand if that's what you agreed.

Refunding a return or an exchange to store credit

If the item is coming back, create the return first, then refund it:

  1. Open the order and click Return.
  2. Choose the items and quantities, pick a return reason, and add any fees or exchange items.
  3. Set up return shipping, then click Create return.
  4. Refund the return and choose Store credit as the refund method, with an optional expiry date.

Create the return before you refund. Shopify won't let you create a return for items you've already refunded, and without the return your inventory and return reports won't reflect what came back.

For exchanges, store credit is useful when the replacement costs less than what was returned: you owe the customer the difference, and you can send it to store credit instead of their card. When the replacement costs more, the customer owes you, and you collect the balance by sending an invoice as part of the return.

How to issue store credit manually

Store credit doesn't have to come from a refund. You can add it to any customer's profile, for a late delivery, a loyalty thank-you or a service recovery:

  1. From your Shopify admin, go to Customers and open the customer's profile.
  2. In the Store credit section, click Edit.
  3. In Adjustment, select Credit.
  4. Enter the amount and, if you want one, an expiration date.
  5. Optionally select Notify customer to send them an email.
  6. Click Review changes, then confirm the credit.

To take credit away, follow the same steps and choose Debit. There's a cap on how much you can issue to one customer account (Shopify currently lists it as $15,000 USD).

How customers use store credit

  • They have to be signed in. The balance only appears when the customer is signed in to their customer account. It shows in their account details, and at checkout as Apply store credit in the payment section.
  • It's all or nothing per order. Customers apply their full available store credit amount as a payment method. They can't choose to use only part of it.
  • Oldest expiry first. If a customer has several credits with different expiry dates, the one that expires first is used first.
  • Currency matters. Only credit in the checkout's currency is shown. A customer with credit in euros won't see it on a checkout in US dollars.
  • Where it works. The online store, Shopify POS and Shop. Not other sales channels, and not B2B stores.
  • Draft orders are different. Store credit can't be applied to draft orders or edited orders directly. Send the customer a checkout link so they can apply it themselves.

Customers who forget they have credit rarely use it. Keep the notification on, and consider segmenting customers by store credit balance for a reminder email. If your customers struggle with signing in, social sign-in for customer accounts removes one step.

Store credit vs gift cards vs a refund

Refund to card Store credit Gift card
Money stays in your store No Yes Yes
Tied to The original payment One customer account A code anyone can use
Customer must sign in — Yes No
Expiry — Optional, set each time you issue it Store-wide setting in Settings → Payments; never expires by default
Partial use — No, full balance per order Yes
Can be given as a gift — No Yes

Store credit is the better fit for returns: it can't be passed on or resold, and you can see it on the customer's profile. Gift cards suit gifting and customers who won't create an account. Many returns apps can also issue Shopify store credit as part of their own flow, which helps if you run a self-serve returns portal, but for refunds you process yourself the built-in option is enough.

Whichever you use, say so in your refund policy. A customer who expected their money back and received credit instead will remember that, and consumer law in some countries gives customers a right to their money back for faulty goods, whatever your policy says.

Expiry dates: set them carefully

Unlike gift cards, store credit has no store-wide default expiry. You choose per issue, and Shopify reminds you to check the laws in your country before you set one. Some jurisdictions restrict expiry on credit that replaces a refund. If you do use expiry, pick one rule (for example, twelve months) and apply it every time, so you're not explaining different dates to different customers.

Reporting and accounting

Under Analytics → Reports, in the Finances category, you'll find a Store credit transactions report and an Outstanding store credit balance report. Store credit also shows up as its own gateway in Net payments by gateway.

Outstanding store credit is money you owe customers in goods. Ask your accountant how to treat it. Whether an accounting integration such as QuickBooks picks up store credit refunds correctly depends on the integration, so check a test refund end to end before month-end rather than after.

Store credit not showing? Troubleshooting

  1. The customer isn't signed in. Guest checkouts never see credit. Ask them to sign in with the email the credit was issued to.
  2. They signed in with a different email. Credit belongs to one customer profile. Check the profile it was issued to.
  3. Wrong currency. Credit issued in one currency doesn't show on a checkout in another.
  4. It expired. Check the expiry on the customer's profile.
  5. It's a draft order or a B2B checkout. Send a checkout link instead, and note that B2B stores don't accept it.
  6. The option isn't there when you refund. Check that Store credit is on under Settings → Customer accounts, that the store isn't on legacy accounts, and that your staff account has the Refund to store credit permission.

Common questions

How do I issue store credit on Shopify?

Either refund an order to store credit (open the order, click Refund and choose Store credit) or add it directly: Customers, open the profile, Edit in the Store credit section, choose Credit.

Can I refund part to the card and part to store credit?

Yes. Select both refund methods and enter an amount for each.

Does the customer get an email?

Yes, by default. You can uncheck Send a notification to the customer when refunding, or Notify customer when issuing credit manually, if you'd rather tell them yourself.

Can store credit be used in my physical shop?

Yes, on Shopify POS, as long as it's active for your online store too.

Can I turn store credit back into a cash refund?

You can over-refund the order to the original payment method, but that doesn't remove the store credit already issued. Debit it from the customer's profile if you need to.

Is store credit the same as a gift card?

No. A gift card is a code anyone can use; store credit is a balance on one customer's account that they can only use while signed in.

Related reading

If returns are eating into your margins, it's worth looking at why they happen in the first place: why fashion returns are mostly not about sizing. For checkout problems that stop the second purchase, see why Shopify customers leave at the payment step. And if you'd like someone to set up customer accounts, store credit and your refund policy properly, talk to us about a monthly care plan.