E-commerce tips
How to Give Store Credit on Shopify: Complete Guide for 2025
By
Emma
on
May 07, 2025
Table of content
- 1. Understanding Shopify store credit options
- 2. How to set up and issue store credit on Shopify
- 3. Implementing store credit apps for Shopify
- 4. Creating an effective store credit workflow
- 5. Shopify store credit best practices and common pitfalls
- 6. Measuring the impact of your store credit program
- 7. Conclusion: getting started with store credit on Shopify
- 8. FAQs about giving store credit on Shopify
Store credit has become a new strategy for many Shopify merchants to boost their business performance. This valuable tool helps increase repeat purchases, enhance customer loyalty, and protect revenue – making it an essential tactic for growing eCommerce businesses.
If you're interested in implementing store credit and looking for comprehensive guidelines on how to give store credit on Shopify, we've got you covered! This article provides step-by-step instructions on Shopify store credit implementation, best practices, and common pitfalls to avoid.
By the end of this guide, you'll have all the knowledge needed to confidently set up and manage store credit for your Shopify store, creating a system that encourages customers to return while maintaining your profit margins.
Let's dive into everything you need to know about offering store credit on your Shopify store!
1. Understanding Shopify store credit options
1.1 Native Shopify solutions vs. third-party apps
Shopify offers basic store credit functionality through its built-in features, allowing merchants to manually issue and track credit for customers. While this native solution requires no additional investment, it has significant limitations in automation, reporting, and customer experience.
Third-party apps provide enhanced capabilities with features like automated credit issuance, detailed analytics, customer-facing interfaces, and integration across multiple sales channels or apps. These specialized solutions typically offer more flexibility and efficiency, though they often come with subscription costs.
The choice between native tools and apps depends on your business volume, complexity of needs, and available resources. Small stores with occasional credit issuance might find Shopify's built-in features sufficient, while growing businesses will benefit from the advanced capabilities of dedicated apps.
1.2 Types of store credit implementations on Shopify
Manual gift card issuance: The simplest store credit method involves manually creating gift cards with predetermined values and sharing them with customers via email. While straightforward, this approach requires significant manual tracking effort and can create accounting challenges at scale.
Automated credit through apps: Store credit apps automate issuance based on predefined triggers like purchase thresholds, anniversaries, or review submissions. This automation reduces administrative work while maintaining consistent application of credit policies.
Store credit for returns and exchanges: A common store credit application is handling returns as an alternative to cash refunds. This keeps revenue within your business while providing customers with compensation. Advanced systems can issue credit immediately upon return approval.
Loyalty-based store credit: Incorporating store credit into loyalty programs incentivizes repeat business. Customers earn credit based on purchase frequency, order value, or engagement activities, transforming abstract loyalty points into tangible value that customers immediately understand.
While related, store credit and gift cards serve different purposes:
Feature | Store credit | Gift cards |
|---|---|---|
Account association | Tied to specific customer accounts | Standalone, transferable |
Transferability | Non-transferable | Can be given to others |
Issuance control | Merchant-initiated | Usually customer-purchased |
Intended use | Typically for returns, loyalty, compensation | Usually for gifting |
Tracking | Tracked by customer account | Tracked by code |
Understanding these differences helps determine which option best fits your specific business scenarios.
2. How to set up and issue store credit on Shopify
Shopify includes built-in functionality that allows you to issue and track store credit without additional apps. While more limited than specialized solutions, it's an excellent starting point for small businesses.
Step-by-step guide to enable store credit in Shopify
Log in to your Shopify admin dashboard
Go to Settings > Customer accounts
Click on Accounts & settings
Under the Store credit section, toggle to enable it
Click Save
Enable store credit in the Shopify Admin settings
Once enabled, you'll be able to issue store credit directly to customer accounts.
How to add store credit to a customer account
Go to Customers in your Shopify admin
Find and select the customer you want to issue credit to
Click Add store credit
Enter the amount and include a note about why you're issuing the credit
Click Add
Manually edit store credit balance for customers in Shopify Admin
The store credit will immediately appear in the customer's account and can be applied at checkout.
Limitations of built-in Shopify store credit system
While convenient, Shopify's built-in solution has several limitations:
Lacks automation capabilities
Limited reporting features
No customer-facing management interface
Cannot set expiration dates
Not available on all Shopify plans
For merchants with higher volume or more complex needs, third-party apps offer more robust solutions.
3. Implementing store credit apps for Shopify
Top store credit apps for Shopify
Looking for the right Shopify store credit app? Consider these top options:
Rise.ai: Premium solution with comprehensive features for gift cards, loyalty, and store credit. Best for medium-large businesses ($19.99-$599.99/month).
GV: Gift Cards & Store Credit: Free mid-range option with robust features for growing stores.
Koin: Budget-friendly solution with cashback capabilities and Shopify Flow integration (free).
Pabloo: Excellent for multi-channel businesses (free-$260/month).
memberr: Enterprise-level solution with VIP tiers and advanced analytics ($199-$499/month).
Shopify store credit apps in Shopify App Store
Setting up a store credit app
For basic store credit functionality, the setup process is quite similar across different Shopify apps.
Here's a typical setup process:
1. Install the app from the Shopify App Store
2. Configure your settings including:
The store credit amount for each order
Program schedule
Credit expiration policies
Customer notification templates
Redemption rules
Display options for customer accounts
3. Set up automation rules if available
4. Connect with your theme for seamless display
5. Test the system with sample transactions
Set up the store credit in the app (Source: Koin)
Key features to look for in Shopify store credit apps
When selecting an app, prioritize these essential capabilities:
Automated credit issuance
Customer-facing credit balance display
Detailed reporting and analytics
Email notifications for credit updates
Integration with returns management
Support for partial redemptions
4. Creating an effective store credit workflow
4.1 Designing your returns process with store credit options
An effective returns process should seamlessly incorporate store credit as an attractive alternative to cash refunds and rewards. Start by mapping your current return journey from the customer's perspective, then identify strategic points to introduce store credit options.
Create clear policy language that explains the benefits of choosing store credit over refunds, such as instant credit availability (versus waiting days for payment refunds) or bonus value (such as offering 110% of the return value as store credit). Position store credit as the default option while still offering cash refunds when legally required or for specific situations.
4.2 Creating templates for store credit communication
Develop standardized templates for all store credit communications to ensure consistent messaging and save time. Essential templates include:
Initial credit issuance notifications explaining the amount, how to use it, and any expiration details
Balance reminder emails encouraging redemption of available credit
Expiration warning messages sent before credits expire
Return confirmation emails that include store credit information
Each template should maintain your brand voice while clearly explaining the value proposition of store credit. Personalize templates with customer names, order references, and specific credit amounts to increase relevance and engagement.
4.3 How to automate store credit processes on Shopify
Identify opportunities to automate routine aspects of your store credit workflow:
Automated credit issuance when returns are approved
Scheduled reminder emails for unused credit
Automatic expiration enforcement based on your policies
Regular reporting on program performance metrics
Automate the store credit issuing with Shopify Flow (Source: Koin)
Most store credit apps offer automation capabilities that can significantly reduce manual workload such as Shopify Flow integration while ensuring consistent policy application. Start with basic automations and expand as you become more comfortable with the system.
5. Shopify store credit best practices and common pitfalls
Essential policy considerations
When developing your store credit program, focus on creating clear rules that both customers and your team can easily understand. Consider important policy questions such as whether you'll offer full purchase price or a percentage as credit value, and which situations qualify customers for store credit issuance.
Determine if your credits will expire and set appropriate timeframes that balance business needs with customer satisfaction. Define clear redemption limits, including whether credit can be applied to shipping costs or taxes, and if certain products should be excluded from credit purchases.
Also decide if customers can use portions of their credit across multiple purchases or must use the entire amount at once, and whether store credit can be combined with other promotional discounts to maximize value.
Best practices for managing store credit on Shopify
Clear communication: Inform customers how and when they can use their credit through notifications, emails, and website policy pages
Visible balances: Display credit amounts prominently in customer accounts for easy access
Timely reminders: Send notifications about unused or expiring credits to encourage redemption
Consistent application: Train your team thoroughly on store credit policies and procedures
Proper documentation: Maintain detailed records of all credit transactions for accurate accounting
Regular analysis: Review program performance metrics against business objectives to identify improvements
Customer feedback: Gather input from credit users to refine your offering based on their experiences
Strategic promotion: Highlight store credit options at key customer touchpoints (cart, checkout, returns)
Display the badge on product page to promote store credit program
Common pitfalls to avoid when giving store credit
Complex redemption processes: Create streamlined, intuitive flows that make using credit simple rather than frustrating customers with complicated steps
Poor financial tracking: Treat store credit as a financial liability and implement systems to monitor total outstanding credit balances
Inflexible expiration policies: If using expiration dates, ensure they're reasonable and clearly communicated to avoid surprising customers
Insufficient promotion: Highlight store credit options at key touchpoints (returns, checkout, account pages) to build awareness
Unclear terms: Prevent customer confusion by explicitly stating any limitations or restrictions on credit usage
6. Measuring the impact of your store credit program
6.1 Key metrics to track for store credit on Shopify
Focus on these essential performance indicators for your store credit program:
Redemption rate: Percentage of issued store credit actually used by customers
Average time to redemption: How quickly customers utilize their credit
Additional spend: Amount customers spend beyond their credit value
Return customer rate: Percentage who make additional purchases after using credit
Cash refund conversion rate: Potential refunds successfully converted to store credit
6.2 Analyzing customer behavior with Shopify store credit
Look beyond basic metrics to understand how store credit influences shopping patterns:
Compare browsing habits between customers with and without store credit
Identify which product categories are commonly purchased using credit
Determine if credit recipients become more frequent shoppers
Assess whether credit users explore new product categories more often
6.3 Calculating ROI on your store credit program
Determine your program's return on investment by comparing:
1. Program costs: App subscription fees, bonus credit amounts, and administrative time
2. Revenue benefits:
Revenue retained through credit vs. cash refunds
Additional spending beyond credit value
Increased customer lifetime value from repeat purchases
Calculate your ROI using this simple formula: (Total revenue benefits - Total program costs) ÷ Total program costs = ROI
A positive result indicates your program generates more value than it costs to maintain.
7. Conclusion: getting started with store credit on Shopify
Implementing store credit on your Shopify store creates a powerful strategy for enhancing customer loyalty and protecting revenue. Throughout this comprehensive guide on how to give store credit on Shopify, we've covered everything you need to successfully launch and manage an effective store credit program.
We explored multiple implementation methods, from Shopify's native functionality to specialized third-party apps like Rise.ai, GV, Koin, Pabloo, and memberr. You've learned the step-by-step process for enabling store credit in your Shopify admin, issuing credit to customers, and integrating credit functionality with other apps with your store system.
The key takeaways from this guide include:
Understanding the differences between store credit and gift cards
Setting up Shopify's native store credit functionality
Implementing specialized apps for advanced features
Creating effective store credit workflows for returns and loyalty programs
Establishing clear policies and avoiding common implementation pitfalls
Measuring performance through essential metrics like redemption rates and ROI
Now is the perfect time to implement store credit on your Shopify store. Start with the approach that best matches your business size and needs—whether that's Shopify's built-in functionality for basic requirements or a specialized app for more advanced capabilities. Begin small, test your processes, gather feedback, and continuously refine your approach based on performance data.
By taking action today to set up store credit, you'll transform potential refund losses into future sales opportunities, increase average order values, and build stronger relationships with your customers. Your Shopify store—and your bottom line—will thank you.
8. FAQs about giving store credit on Shopify
-About Author
Emma C.
As the Chief Marketing Officer at KOIN app, I’m here to build a robust ecosystem by collaping with Shopify apps. Together, we can create seamless integrations that add more value to our shared customers.
KOIN helps merchants retain customers, increase repeat purchases, and drive loyalty by offering cashback and store credit rewards.
📩 Let’s connect! emma@getkoin.io
