Returns & CX Mar 13, 2027 5 min read
How to Offer Store Credit Instead of Refunds
Store credit instead of refund retains 100% of revenue. To make it attractive: offer 110-120% credit value, easy redemption, no expiry.
The Chart
| Tactic | Customer Value | Revenue Retained |
|---|---|---|
| 100% store credit | Same as refund | 100% |
| 110% store credit (+10% bonus) | Slightly better deal | 100% |
| 120% store credit + free shipping | Strong incentive | 100% |
| Store credit + extended expiry | Time to use | 100% |
| Cash refund | Cash back | 0% retained |
FAQs
Legal to offer only credit?
No. Most jurisdictions require cash refund option. EU law requires cash refund within 14 days. Offer store credit as preferred but always allow cash.
Apps for store credit?
Rise.ai, Smile.io, Yotpo Loyalty all do store credit. Native Shopify gift cards also work. Pick based on integration with your existing loyalty stack.
Need this on your store?
Tailor Size Guide ships pre-built size charts for Shopify.