Store Credit in Shopify: How It Works Online and in POS

Store credit in Shopify is native. You issue it to a customer account, and the customer spends it at online checkout, in Shopify POS, or in the Shop app. You can also refund returns straight to store credit. It is on by default under Settings > Customer accounts and needs the newer customer accounts.

Customers apply the full balance, up to the order total. A widely read how-to page still says Shopify has no built-in store credit and tells you to issue a gift card instead. That was true years ago. It is not true now.

This guide is for the owner of one Shopify store with a website and a counter. It covers setup, how to issue store credit, refunds, redemption, expiry, reports, rewards and apps.

Store credit matters because it keeps refund money in the business instead of sending it back to a card. It can also boost sales from existing customers.

What is store credit on Shopify

Store credit on Shopify is a balance held on a customer’s profile. It is money the customer can spend with you, and only with you.

It is not a code. Nobody else can use it, and it follows the customer across the online store and the counter. The credit balance is visible to both of you.

Is store credit the same as a refund?

No. A refund returns money to the original payment method. Store credit keeps the refund value inside your Shopify store as a balance for future purchases. For the customer, both settle the return. For the store, only one keeps the cash.

How do Shopify credits work?

Each credit issued sits on the customer profile with its own amount and expiry. At checkout, the system applies the available store credit, up to the order total.

If several credits exist, the one that expires soonest is used first. The customer sees one credit balance, not a list of credits.

A customer does not have to spend the entire credit balance at once. If the order is smaller, the remaining balance stays on the account for future transactions.

Why offer store credit

Protect cash flow

A cash refund leaves the till today. Store credit stays as a liability until the customer returns. For a single store with tight cash flow in a slow month, that gap matters.

Encourage repeat purchases

Credit brings the customer back for future purchases. In our accounts, store credit refunds come back as new orders far more often than cash refunds do.

Encouraging repeat purchases is the main reason to offer store credit at all. It is a quiet driver of business growth for a single store.

Better customer experience

Shoppers who choose store credit get their value instantly. There is no wait for a card refund to clear.

A good customer experience at the return desk often turns into customer retention. Credit is one way to provide customers with a reason to return.

When cash refunds are still right

Some returns should go back to the card. A faulty product, a billing mistake or a customer who is unhappy with the store should get a refund. Offer store credit as a choice, never as a trap. Consumer protection rules on refunds differ by province and state, so check yours.

Store credit or gift card: which to use

Both hold value, but they behave differently. For a single store the split is simple:

	Store credit	Gift card
Tied to	A customer account	A code anyone can use
Best for	Refunds, goodwill, loyalty	Selling value to a buyer for someone else
Where it works	Online store, POS, Shop app	Online store, POS, Shop app, Buy Button and other Shopify checkout channels
Expiry	Set per issuance, or none	One store-wide setting
Needs an account	Yes (new customer accounts)	No

Use store credit when you know who the customer is. Use a gift card when the person who pays is not the person who spends.

A gift card can be spent over several orders until it runs out, but anyone holding the code can spend it.

Store credit vs discount codes

Discount codes lower the price of a future order. Store credit pays for it. A discount code can be shared, stacked or limited by product. Store credit is a payment method tied to one person.

Use discount codes for promotions. Use store credit for refunds and rewards to existing customers.

Most merchants we work with run both discount codes and store credit, and keep them apart in the books.

Store credit Shopify requirements

New customer accounts

Store credit works only with the new customer accounts. Legacy accounts are not supported. Customers sign in through customer accounts or Shop Pay to apply it at checkout.

Store credit settings

Go to Settings > Customer accounts in the Shopify admin and confirm the Store credit toggle is on. It is on by default. POS can be turned off separately, but it cannot be on while the online store has it off.

Staff permissions

In the Shopify admin, staff need Store credit plus Edit store credit to issue or debit. View store credit transactions shows history. In Shopify POS, staff need the Customers role permissions, Redeem store credit set to Allowed, and Manage a customer’s store credit.

Channels

Shopify store credit works on the online store, POS and Shop only. Other sales channels in your Shopify store do not accept it.

How to issue store credit in the Shopify admin

Shopify lists common reasons to issue store credit: goodwill, customer retention, marketing campaigns, and loyalty or referral rewards.

Steps to issue credit

Go to Customers and open the customer.
In the Store credit section, click Edit.
Under Adjustment, select Credit.
Optional: choose a Currency if you sell in more than one.
Enter the Amount.
Under Expiration date, choose No expiry date or Set expiry date.
Click Review changes. Optional: select Notify customer to send an email.
Click Credit {Amount}.

Each customer account can hold less than $15,000 USD in issued store credit. Each credit issued shows as an event in the customer timeline in the Shopify admin.

Debit or correct a credit balance

Follow the same path in the Shopify admin and choose Debit under Adjustment. Enter the credit amount, click Review changes, then Debit.

Use this when staff issue credit for the wrong amount. It is the simplest way to manage store credit mistakes.

Notify the customer

With Notify customer selected, the customer receives an email. You can edit the template under Customer notifications in settings.

We add a line about using store credit online and in store. It helps encourage customers to come back, and it lists Shopify store credit as a payment option.

Issue store credit at the checkout desk in Shopify POS

Add store credit in POS

Tap the Customer icon and open the customer.
In the Wallets section, tap Store credit.
In Balance, tap Edit.
In Edit store credit balance, tap Add and enter the amount. New balance shows the result.
Optional: tap Add expiry date, pick the date and tap OK.
Tap Add to balance.

Add a reason in the customer’s Note section afterwards. In our accounts, that note is what saves an argument six months later.

Show store credit as a POS payment method

Store credit must be visible as a POS payment method. In the Shopify admin, go to Sales channels > Point of Sale. Under Customize the in-store experience, click Edit for POS app. Click Checkout and make Store credit visible.

Per device, it lives under Settings > Checkout > Payments in the POS app. Check each iPad at the checkout desk.

Refund to store credit

Online and admin refunds

Open the order in Orders and select Refund. Click the lock icon next to Total available to refund, then enter the amount. Store credit is a refund method for full refunds, partial refunds, returns and cancellations.

Staff need the store owner role or the Refund to store credit permission under Orders. For a mailed return, create the return first so the reason is recorded.

POS returns

First turn on Allow orders to be refunded to store credit in the Point of Sale settings. Then:

Tap the Orders icon and select the order.
Tap Return, set quantities, and choose whether to restock.
Tap Next, pick a return reason, tap Next again.
Under Options, tap Refund to store credit.
Tap Refund, then Done.

The order must be linked to a customer profile; POS prompts you to create one if it is not. A POS store credit refund sends the Order refund email, not a “store credit issued” email.

Over-refund to the original payment

A customer may change their mind after taking credit. You can then refund to the original payment method as well. Open the order, click Refund, and use the lock icon next to Total available to refund.

This does not reverse the earlier credit. Debit the balance by hand so the customer is not paid twice. Staff need the Over-refund orders previously refunded to store credit permission.

Exchanges

For exchanges, store credit can settle the difference on a POS Pro location. See exchanging an online order in store.

How customers redeem store credit

How do I use my store credit online?

A signed-in customer sees their balance in the Store credit section at checkout. They select Apply store credit, and the order total drops. Shop Pay checkouts can apply it too. Logged-in customers can also see their store credit balance in their account details.

Spend store credit at the counter

Add the customer to the cart. The balance appears in the customer details. Tap Apply store credit, then Checkout. Or open the customer profile, go to Wallets > Store credit, and tap + Apply to cart.

Remaining balance and multiple transactions

The full available credit is applied, up to the order total. Shopify’s own example: a $30 order with $50 of credit applies $30. The remaining $20 stays for the next order.

Shopify store credit can cover multiple transactions until it runs out. If the credit balance is smaller than the order, the customer pays the rest with another payment method.

Store credit limits a single store should know

Full balance only. Customers cannot choose a partial amount. The system applies as much as the order allows.
Not on draft or edited orders. For a phone order, send a checkout link from the draft with Send invoice. The customer applies credit there.
Not offline. POS cannot apply store credit while it is offline.
No gift cards in the cart. A cart with a gift card product cannot use store credit in POS.
Subscriptions. It covers the first purchase of a subscription, not the recurring bills.
Currency. Checkout shows only the balance in the checkout currency. A CAD balance does not appear on a USD checkout.
Fees. For stores created on or after May 12, 2025, third-party transaction fees apply to the amount paid with store credit.

Setting expiration dates

How expiry works

Expiry is set per issuance. There is no store-wide default and no automatic expiry. Credit expires at the end of the day in your store’s time zone.

Shopify tells you to check local laws before setting expiration dates. Our default for refund credit is No expiry date. We date only promotional credit, often with a 12-month window.

Canada and US differences

Store credit raises the same questions on both sides of the border, but the rules differ. Provinces and states set their own rules on gift cards and refunds. Check with your accountant or lawyer before you put expiration dates on anything a customer paid for.

Balances are held by currency. A Canadian store selling in CAD and USD through Markets may see a customer with two balances. Each one shows only at a checkout in that currency.

Track balances: reports and segments

Outstanding balances at month end

Go to Analytics > Reports, then Categories > Finances. Two reports matter:

Store credit transactions for the history, filtered by date range.
Outstanding store credit balance for the liability your bookkeeper needs at month end.

Store credit also shows as a provider in Net payments by gateway. These reports are how you track balances without opening each customer.

Customer segments

Customer segments can filter by balance, upcoming expiry and last credit date. That gives you a list for a “you have credit waiting” email. In our accounts, a reminder like that lifts redemption rates noticeably.

Watch store credit usage

Low redemption rates mean customers forget their credit. High store credit usage with no new spending means credit is replacing sales, not adding to them.

Check both each quarter. Using store credit well shows up as customers spending more than their balance.

Store credit rewards and loyalty

Bonus credit for choosing credit

Some stores encourage customers to choose store credit over a refund by adding a little extra. A $50 return becomes $55 in credit.

The bonus credit costs you less than the cash refund would. It is a simple way to provide incentives without a discount.

Issue it by hand in the admin, as two credits: the refund value and the bonus. Give the bonus its own expiry date.

Store credit rewards and earning rules

A rewards program pays customers in credit for buying. Earning rules set how much: for example, 5% of each order back as store credit rewards. Native Shopify store credit has no earning rules of its own. You need Flow or store credit apps for that.

Automated credits with Shopify Flow

Shopify Flow is free on the Basic, Grow, Advanced and Plus plans of a Shopify store. Merchants in the Shopify Community report they issue store credit from Flow with the Send Admin API request action.

That is a developer-style setup. A single store without a developer should use an app for automated credits instead.

Native Shopify store credit vs store credit apps

When native is enough

Native Shopify store credit covers refunds, goodwill credits and one-off loyalty rewards well. It also cuts support tickets, because customers see their own balance.

When store credit apps earn their place

Store credit apps still earn their place for cashback rules, bulk credits to hundreds of customers, and tiered loyalty rewards. Each app has its own set of rules and fees. Check that it writes to Shopify store credit, so balances stay in one place in your Shopify store.

If none of that applies, stay native. A store credit program does not need an app to work, and the Shopify admin keeps every balance in one place.

Troubleshooting store credit

Apply store credit is missing at checkout

The customer is probably not signed in. Store credit appears only for customers signed in through customer accounts or Shop Pay. Check also that the checkout currency matches the credit balance currency.

Store credit is missing in POS

Check three things in order. Store credit must be visible as a POS payment method on that device. Staff need Redeem store credit set to Allowed. And POS must be online, with no gift card product in the cart.

A refund went to the card instead of credit

Check that Allow orders to be refunded to store credit is on in Point of Sale settings. If the refund is done, issue credit by hand and note the order number.

Tips for using store credit at a single store

Using store credit for phone orders

Store credit cannot be applied to draft orders. Create the draft, click Send invoice, and the customer applies their credit in the checkout link.

Using store credit to settle complaints

A small goodwill credit often ends a complaint faster than a long email thread. Issue credit with a note, and the customer timeline shows why. It also keeps support tickets short.

Using store credit for staff and community events

Some stores issue store credit as a prize at a local event, to encourage customers to visit. Give it an expiry date, and create the customer profile at the counter when the winner signs up.

Worked example: a single store’s refund policy

A gift and home store in Ontario sells online in CAD and at the counter. Its policy: a 30-day return window, refund to the card, or store credit plus 10%.

A customer returns a $60 lamp bought online. She chooses store credit. Staff tap Refund to store credit for $60, then issue a $6 bonus credit with a 12-month expiry. Two weeks later she spends $90 at the counter. The $66 credit applies, and she pays $24 by card.

The store kept $60 in the till and made a $90 sale. Its average order on credit redemptions runs above its normal average order, which is typical in our accounts.

How store credit affects the books

A credit issued is a liability, not revenue. Revenue is recorded when the credit is spent on future purchases. Sales tax (GST/HST, PST or US sales tax) is charged on the new sale, not on the credit.

Ask your bookkeeper how they want a refund to store credit recorded. Then match it each month against the Outstanding store credit balance report.

Store credit FAQ

How to do store credit on Shopify?

Confirm new customer accounts and the Store credit toggle are on. Then open a customer in the Shopify admin, click Edit in Store credit, and add an amount. In POS, use Wallets > Store credit.

Can I offer store credit instead of a refund?

Yes, if your policy says so and local law allows it. Offer store credit as an option at the return desk, and state it on your returns page.

Does Shopify store credit expire?

Only if you set an expiry date when you issue it. Otherwise it never expires.

Can a customer receive store credit without an account?

No. A customer must have a profile and use new customer accounts to receive store credit and spend it online.

Store credit checklist

New customer accounts on; Store credit toggle on in Settings > Customer accounts.
Store credit visible as a POS payment method on every device.
Allow orders to be refunded to store credit on in Point of Sale settings.
Staff permissions set to manage store credit in both admin and POS roles.
An expiry policy written down: none for refunds, dated for promotions.
Bonus credit rule decided, if you use one.
Month-end check of Outstanding store credit balance.
Quarterly review of redemption rates and store credit usage.