Last updated: November 7, 2026. Store credit rules come from Shopify’s Help Center, and loyalty app details from each app’s App Store listing, checked on November 7, 2026.
Quick answer: Shopify has built-in store credit: you can add credit to a customer’s profile, set an expiry date, refund orders to store credit, and customers apply it at checkout online, in Shopify POS and in the Shop app. That makes it a simple loyalty reward, such as cashback, birthday credit or a win-back offer. It needs the new customer accounts, can’t be used on draft orders, and stores created on or after May 12, 2025 pay third-party transaction fees on the store credit part of an order. To give credit automatically, use a loyalty app that supports store credit.
Key takeaways:
- Store credit is built into Shopify admin.
- It works best as cashback, refunds and win-back rewards.
- Automating it needs an app or a developer.
In this guide
- What is Shopify store credit?
- Check before you start
- How to issue store credit
- 8 ways to use store credit as a reward
- Store credit, points or discounts?
- A cashback example
- When not to use store credit
- What to measure
- Automating store credit rewards
- The bottom line
- FAQ
What Is Shopify Store Credit?
A balance on a customer’s profile that they can spend in your store. Shopify added store credit to the admin in 2024 (Shopify Changelog). Customers choose Apply store credit in the payment section of checkout, and you can see each customer’s balance, expiring amounts and transaction history on their profile (Shopify Help Center).
Unlike a discount code, store credit belongs to one customer and shows as a balance, so it feels like money they already have, which is a strong reason to come back.
What Should You Check Before Using Store Credit?
A few rules decide whether store credit works for your store. All are from Shopify’s Help Center.
| Rule | What it means for you |
|---|---|
| New customer accounts only | Store credit isn’t available with legacy customer accounts. Customers sign in with customer accounts or Shop Pay to use it. |
| Where it can be spent | Your online store, Shopify POS and the Shop app only. |
| Not on draft or edited orders | Send the customer an invoice or checkout link so they can apply credit at checkout. |
| Transaction fees | Stores created on or after May 12, 2025 pay third-party transaction fees on the amount paid with store credit. |
| Subscriptions | Credit can pay for the first subscription order, but not recurring payments. |
| Currency | Only the balance in the checkout currency shows at checkout. |
| Limit | Staff can’t issue more than $15,000 USD to one customer account. |
How Do You Issue Store Credit on Shopify?
From the customer’s profile in your Shopify admin. Staff need the Store credit and Edit store credit permissions.
- Go to Customers and open the customer.
- In the Store credit section, click Edit.
- If you see an Adjustment field, choose Credit.
- Enter the Amount, and choose a currency if your store sells in more than one.
- Optional: set an Expiration date. Credit expires at the end of that day in your store’s time zone.
- Optional: tick Notify customer and add an internal note.
- Click Issue credit.
To refund to store credit: when refunding an order, return or cancellation, choose store credit as the refund method. Staff need the Refund to store credit permission.
Check local laws before adding expiry dates. Shopify’s Help Center recommends it, because rules on expiring credit differ by country and state.
How Can You Use Store Credit as a Loyalty Reward?
Use it where a balance feels more valuable than a code.
- Cashback on orders: give a small percentage back as store credit, for example 5% on orders over $100, to bring customers back for a second order.
- Refunds as store credit: offer store credit instead of a refund to the original payment, sometimes with a small bonus, so the money stays in your store.
- Birthday or anniversary credit: a small balance that expires in 30 days gives a clear reason to shop that month.
- Win-back credit: create a customer segment of people who haven’t ordered in 90 days, and give them credit that expires in two weeks.
- VIP thank-you: add credit for your best customers after a big sale, such as Black Friday. See our Black Friday loyalty ideas.
- Service recovery: when an order goes wrong, credit is a quick, generous fix that also brings the customer back.
- Review credit: thank customers who leave a product review with a small credit toward their next order. Reward the review itself, not a positive rating.
- Milestone orders: add credit on a customer's third or fifth order, which rewards the habit you want to build.
Shopify’s customer segments can filter by store credit balance, upcoming expiry dates and last credit date, so you can email customers whose credit is about to expire.
Should You Use Store Credit, Loyalty Points or Discounts?
Each works differently at checkout and on your margin.
| Store credit (cashback) | Loyalty points | Discount code | |
|---|---|---|---|
| What the customer sees | A money balance, such as $10 | Points that convert into rewards | A code or automatic price cut |
| When it costs you | Only when the customer comes back and spends it | Only when points are redeemed | On the order it's used |
| Brings customers back | Yes, the balance is a reason to return | Yes, if the reward feels reachable | Not by itself |
| Built into Shopify | Yes | No, needs a loyalty app | Yes |
| Spent at checkout | Applied directly as a payment | Usually turned into a discount code first | Entered or applied automatically |
| Shows on your books | Yes, in the outstanding store credit balance report | Depends on the app | As a discount on the order |
Many stores use all three: discounts for big sales, points for everyday rewards, and store credit for cashback, refunds and special offers.
What Does Cashback Cost Compared With a Discount?
A discount costs you on today's order; cashback only costs you if the customer comes back. Here's an illustrative example with round numbers, not data from real stores.
| 10% discount | 5% cashback as store credit | |
|---|---|---|
| Customer's first order | $100 order, pays $90 | $100 order, pays $100 |
| You receive today | $90 | $100, and $5 credit goes on their profile |
| If they never come back | You gave away $10 | The $5 credit stays unspent, or expires if you set a date |
| If they come back for a $60 order | No reason built in to return | They spend the $5 credit and pay $55 |
Keep in mind: unspent credit is still owed to the customer until it expires, and stores created on or after May 12, 2025 pay transaction fees on the amount paid with store credit. A discount is still the stronger hook for a first purchase, which is why cashback works best for customers who have already bought once.
When Shouldn't You Use Store Credit as a Reward?
- You use legacy customer accounts: store credit won't work until you switch to the new customer accounts.
- Most of your sales are one-off purchases: if customers rarely need a second item, credit they can't use won't feel like a reward.
- You sell mainly through draft orders or other channels: credit only works in your online store, POS and the Shop app.
- Your margins are very thin: add up the credit you'd issue and the transaction fees before you commit to a cashback rate.
What Should You Measure?
- Redemption: how much issued credit is actually spent, from the store credit transactions report.
- Outstanding balance: how much credit is still owed to customers, from the outstanding store credit balance report.
- Repeat purchases: whether customers who received credit place a second order more often than those who didn't.
- Expiring credit: use a customer segment for credit expiring soon, and remind those customers by email.
How Do You Automate Store Credit Rewards?
Shopify doesn’t issue store credit automatically on its own, so you need a loyalty app or a developer.
- Loyalty apps: several list store credit on their Shopify App Store pages, such as Froonze (native store credit integration on its free plan), Flits (store credit from $15 a month), BLOY (store credit in its loyalty program) and Growave (store credit on its $199 Growth plan). Check each listing for the current plan.
- Shopify Flow: Flow has no built-in “issue store credit” action, but a developer can use Flow’s Send Admin API request action with Shopify’s store credit mutation, for example to add credit when an order is paid (Shopify Community). Test it on a few orders first.
The Bottom Line
Shopify store credit is a simple, built-in loyalty tool: issue it from a customer’s profile, set an expiry date, refund to it, and customers spend it at checkout online, in POS and in the Shop app. Check that you use the new customer accounts and whether transaction fees apply to your store. Start with manual rewards like refunds, birthday and win-back credit, and use a loyalty app when you want cashback to run automatically.
Frequently Asked Questions
Does Shopify have store credit?
Yes. You can issue store credit from a customer’s profile in the Shopify admin, set an expiry date, and refund orders to store credit. Customers apply it at checkout.
Can store credit expire on Shopify?
Yes, if you set an expiration date when you issue it. It expires at the end of that day in your store’s time zone. Check local laws before using expiry dates.
Where can customers use Shopify store credit?
On your online store, in Shopify POS and in the Shop app. It can’t be used on draft orders or edited orders.
Does store credit work with legacy customer accounts?
No. Store credit needs the new customer accounts, or customers signing in with Shop Pay.
Are there fees on store credit orders?
For stores created on or after May 12, 2025, Shopify charges third-party transaction fees on the amount paid with store credit.
Is cashback better than a discount?
It depends on the goal. A discount is stronger for winning a first order, while cashback as store credit gives existing customers a reason to come back and only costs you when they spend it.
Can Shopify give store credit automatically?
Not on its own. Use a loyalty app that supports store credit, or ask a developer to set up a Shopify Flow workflow with an Admin API request.
Related Reading
- Black Friday Loyalty Ideas for Shopify (2026)
- Smile.io Pricing (2026): Every Plan and Order Limit Explained
- How to Add a Wishlist to Shopify Without an App
Update Log
November 7, 2026: First published, with store credit rules from Shopify’s Help Center. Includes a store credit, points and discounts comparison, a cashback example, when not to use store credit, and what to measure.
