Shopify doesn’t have a separate “store credit” feature. Instead, you issue store credit by creating a gift card with a set value and sending it to the customer. This works for any scenario: compensating for a bad experience, handling a return, or rewarding loyalty. The gift card functions exactly like store credit because the customer can apply its balance toward future purchases.
Create Store Credit Manually
This is the most common method when you want to give a customer credit outside of a return. You create a gift card directly in your admin panel without collecting any payment.
- From your Shopify admin, go to Products > Gift cards.
- Click Create gift card.
- Enter the dollar amount in the Initial value field. You can set any amount up to $2,000 USD (or the equivalent in your store’s currency).
- In the Customer field, search for the customer by name, email, or phone number. The customer needs at least an email address or phone number on file so Shopify can deliver the code.
- Optionally set an expiration date. Some jurisdictions restrict or prohibit expiration dates on gift cards, so check the rules for where you sell.
- Optionally add an internal note explaining why you issued the credit. This note is visible only to your team in the admin, not to the customer.
- Click Save, then click Send gift card.
- If the customer has an email on file, click Send email. If only a phone number is available, click Send SMS. When both exist, Shopify defaults to email.
Before sending, you can click “Preview email” to see exactly what the customer will receive. The email includes the gift card code they’ll enter at checkout to apply their credit.
If you create a gift card but skip the customer info, you can always go back later. Navigate to Products > Gift cards, click the card (identified by the last four characters of its code), add the customer, save, and then send it.
Issue Credit During a Return
When a customer returns an item and you want to give store credit instead of refunding to their original payment method, you refund to a gift card. The process differs depending on whether you’re working from the Shopify admin for online orders or from Shopify POS for in-store returns.
Online Returns via Shopify Admin
When processing a return for an online order, you can choose to refund the amount as a gift card rather than back to the customer’s credit card or other payment method. During the refund flow, select the gift card option, and Shopify will generate a new gift card with the refund amount and send it to the customer. This keeps the money in your store’s ecosystem instead of leaving your business entirely.
In-Store Returns via Shopify POS
For point-of-sale returns, the steps are slightly different. One important rule: if you start a return in the Shopify admin, you can’t then complete the refund to a gift card from POS. You need to start and finish the return entirely within POS.
- Tap the Order icon in Shopify POS and find the order.
- Tap Return and set the quantity for each item being returned.
- If shipping was charged, tap Add to include it in the refund amount.
- Confirm the customer information. You can send the refund gift card to the original customer, or tap Edit to assign it to a different customer.
- Optionally enter a reason for the refund.
- Tap Refund, then tap Done when it processes.
If the customer already has a gift card and you want to reload it rather than issue a new one, you can choose “Existing gift card” and scan the barcode. This option is only available for transactions originally processed through Shopify Payments. Orders paid with cash or through another payment processor won’t have the reload option.
Apps That Automate Store Credit
Shopify’s built-in gift card system works fine for occasional, manual credit issuance. But if you want to automate the process, such as automatically granting credit for returns, cashback rewards, referrals, or product reviews, third-party apps fill the gap.
Apps like Redeemly Store Credit Cashback (rated 5.0 stars on the Shopify App Store) and Pabloo Store Credit & Cashback offer features that the native system lacks. These typically let you set rules like “give 10% back in store credit on every purchase” or “issue $5 credit when a customer leaves a review.” The credit gets applied automatically at checkout without requiring the customer to dig up a gift card code.
These apps are worth exploring if you plan to use store credit as a retention strategy rather than just a one-off customer service tool. Browse the Shopify App Store under the payments and loyalty categories to compare current options and pricing.
Tracking Store Credit in Reports
Every gift card you issue as store credit creates a liability on your books, representing money customers can spend later. Shopify tracks this in its finance reports. You can view the “store credit balance net change” report to see how your outstanding credit balance shifts over time, comparing opening and closing balances for any period you select.
If your store operates in multiple currencies, you can filter this report by currency to see outstanding balances for each one separately. Keeping an eye on this number helps you understand how much unredeemed credit is sitting out there and plan your cash flow accordingly.
Tips for Using Store Credit Effectively
When you issue store credit as a gift card, the customer receives a code they need to enter at checkout. Make sure your communication is clear so they understand this is store credit, not a promotional gift card. A brief note in the email or a follow-up message explaining how to use it reduces confusion and support tickets.
Setting expiration dates can encourage customers to return and spend sooner, but many regions have laws requiring gift cards to remain valid for several years or indefinitely. Research the rules where your customers are located before adding an expiration.
For returns, offering store credit instead of a full refund can significantly reduce revenue loss. Many customers actually prefer the simplicity of store credit when they know they’ll shop with you again, especially if you add a small bonus (like $5 extra) as an incentive to choose credit over a refund.