Issuing Refunds and Store Credit
When a customer submits a return, they choose how they'd like to be refunded — back to their original payment method or as store credit. This article covers how to review the customer's choice, when to issue the refund, and how to complete it from the return page in Cahoot.
Understanding the Refund Options
Customers select their preferred refund method in the returns portal when submitting the return. Their choice appears on the return page in Cahoot under Refund By Option in the Return Details panel:
- Original Payment — the refund goes back to the payment method used on the order and is processed through Shopify.
- Store Credit — the refund is issued as Shopify store credit tied to the customer's account, which they can spend on a future purchase.
The customer's choice is the default when you issue the refund, but you always have the final say — you can switch to the other option at the time of payment.
When to Issue the Refund
You can issue a refund as soon as the return appears in Cahoot — there's no required step to complete first. That said, we recommend waiting until the customer has printed their return shipping label. This confirms the return is actually in motion before the money goes out. If your return policy calls for refunding earlier (or later, such as after delivery), you have full flexibility on timing.
How to Issue a Refund or Store Credit
1Open the return in Cahoot and scroll to the Refund Details section at the bottom of the page.
2Click Add Refund Payment.
3Review the popup. The amount is prepopulated with the subtotal of the item being returned, and the payment type dropdown defaults to the refund method the customer chose. To override the customer's choice, select a different option from the dropdown.
4Optionally, add a Comment for your records — for example, the reason for a partial refund or an override.
5Click Submit Payment.
The refund is processed immediately — original payment refunds go through Shopify to the customer's payment method, and store credit is added to the customer's account. The transaction appears in the Refund Details table, and the return's Payment Status updates from Pending Refund to Refunded.
Issuing a Partial Refund
The prepopulated amount is the subtotal of the returned item, so in most cases you won't change it. To issue a partial refund — for example, to withhold a fee agreed with the customer — simply lower the amount in the popup before clicking Submit Payment. Use the Comment field to note why the amount was reduced.
How Store Credit Works for Your Customer
Store credit issued through Cahoot uses Shopify's native store credit system, which ties the balance to the customer's account on your store:
- The credit is associated with the customer on the order. To see and spend it, the customer signs in to their customer account on your storefront.
- At checkout, available store credit appears automatically as a payment option for logged-in customers — there's no code to enter.
- Store credit transactions are captured in Shopify's financial reporting, so your books stay clean without manual order adjustments.
Store Credit vs. Cashback: What's the Difference?
These two can sound similar, but they're separate things:
- Store credit is a refund method — it replaces sending money back to the customer's card for the item they returned.
- Cashback is the peer-to-peer incentive — a bonus the customer earns for choosing the peer-to-peer return route. It's shown on the return page as the Cashback Amount and is handled separately from the refund.
A customer on the peer-to-peer path can receive both: the refund for their item (original payment or store credit) plus the cashback incentive.
Frequently Asked Questions
My customer says they can't see their store credit at checkout. What should I check?
Store credit only appears for customers who are signed in to their customer account on your store. Ask the customer to log in and check their account balance. Also confirm that customer accounts are enabled in your Shopify settings.
Can I reverse or cancel a refund after submitting it?
No. Refunds are final once submitted and cannot be undone. If a refund was issued in error, contact the customer to arrange a resolution, such as a new order or payment.
The customer chose store credit but now wants their original payment back. Can I do that?
Yes — if the refund hasn't been issued yet, just change the dropdown in the Add Refund Payment popup to Original Payment before submitting. The customer's portal choice is only the default, not a restriction.
In Shopify, how do I tell which order a store credit transaction came from?
Shopify's store credit transactions show the amount and date but don't reference the originating order. For a complete record, use the Comment field when issuing the refund in Cahoot — the return's Refund Details table keeps the full history tied to the return and order.
Need Help?
If a refund doesn't process as expected or a store credit balance isn't appearing for your customer, Submit Ticket and include the Return ID and the refund amount so our team can investigate.