Shopify Store Credit Refunds: Set Up Order Undo

Can you refund a Shopify cancellation as store credit?

Order Undo can request store-credit refunds for eligible consumer orders when you enable automatic refunds and the store-credit option. New customer accounts and checkout store credit must be enabled before opting in. B2B orders still refund to the original payment method, and an accepted cancellation request does not confirm a completed refund.

Store credit gives a customer a balance to spend with your store instead of sending money back to their original payment method. It can suit someone who wants a different item rather than to stop shopping with you. It is not a replacement for refund rights or a guarantee of another sale.

We build Order Undo. This guide explains its refund policy and the Shopify settings customers need to use the credit. For the wider cancellation process, start with our Shopify cancellation and editing guide.

Store credit vs. an original-payment refund

Question	Store credit	Original-payment refund
Where does the refund go?	A balance the customer can spend with your store	Back to the original payment method
What must the customer do to use it?	Sign in with customer accounts or use Shop Pay, with checkout store credit enabled	No new purchase is needed
When might it fit?	The customer wants to shop with you again	The customer needs their money returned
How does Order Undo use it?	Optional automatic refund method for eligible consumer cancellations and edits	Used when the store-credit option is off, and for B2B orders
Does cancellation confirmation prove payment is complete?	No; verify the credit balance	No; verify the refund status

Shopify also lets merchants select store credit when manually cancelling an eligible order. Order Undo adds a merchant-configured refund policy to its customer self-service flow; it is not required for every store-credit refund.

Explain the refund method before customers confirm. Check your store policy and applicable consumer law before offering store credit instead of money back. Order Undo’s setting is a merchant choice, not a customer-facing refund-method selector.

How do you set up store-credit refunds in Order Undo?

1. Check customer accounts and checkout

In Shopify, open Settings > Customer accounts. Use new customer accounts rather than legacy accounts, and turn on Store credit for checkout. Order Undo checks both requirements before allowing a new opt-in. If availability cannot be verified, retry after checking your Shopify settings.

Shopify’s store-credit documentation explains that customers redeem credit when signed in through customer accounts or using Shop Pay. For credit in multiple currencies, the balance must match the checkout currency.

2. Enable automatic refunds and store credit

Open Order Undo’s Cancellation process settings. Enable automatic refunds, then Refund as store credit, and save. The setting applies to eligible consumer cancellations and the cancellation step of edits. B2B orders continue to refund to the original payment method.

If automatic refunds are off, enabling self-service cancellation alone does not issue a refund. Decide how your team will follow up on those orders.

3. Set cancellation safeguards

Review your cancellation window and eligible order statuses before enabling customer access. You can require a cancellation reason and a confirmation checkbox. When confirmation is required, customers must check it before confirming on the thank-you page, using the label you configured.

Use a label that explains the consequence, rather than a vague “I agree.” For example, if it matches your policy: “I understand that any eligible refund will be issued as store credit.”

4. Write a clear store-credit cancellation message

In Customize text, review the Store-credit cancellation message. This message is separate from the ordinary cancellation message and is used for store-credit cancellations, not edits or B2B original-payment refunds.

A suitable message is:

“Your cancellation request was accepted. Any refund will be issued as store credit. Once available, you can use it at checkout when signed in.”

Do not say “Your credit is ready” just because the request was accepted. The refund may still be processing. Review the wording on customer accounts, the thank-you page, and any compatible theme placement you use.

5. Test the complete customer journey

Use Order Undo’s Setup Guide to add and save the customer controls on the pages your store uses. Then test an eligible order before inviting customers to use the feature:

1. Confirm the cancellation button appears within your configured window.
2. Check that required reasons and confirmation prevent an incomplete submission.
3. Submit a cancellation and review the customer message.
4. Check the order’s refund status and the customer’s store-credit balance in Shopify.
5. Once the credit is available, sign in as the test customer and verify it can be applied at checkout in the matching currency.
6. If you sell B2B, check that a B2B cancellation follows the original-payment refund policy.

What happens when a customer edits an order?

Order Undo editing cancels the original order and restores its items to a cart for a new checkout. It does not update the original order in place. The automatic refund policy also applies to that cancellation, including store credit for eligible consumer orders when enabled and original-payment refunds for B2B orders.

Customers can make their changes and enter the correct shipping address during the new checkout. Do not promise that a pending refund will already be available to pay for the replacement order. Our shipping-address correction guide explains when a merchant should edit the existing address instead.

Why can’t a customer use their store credit?

Check these settings before issuing another refund:

• Checkout availability: Is store credit still enabled in Shopify?
• Account experience: Are you using new customer accounts, and is the customer signed in or using Shop Pay?
• Currency: Does the credit balance match the checkout currency?
• Refund status: Has the refund completed, or was only the cancellation request accepted?
• Order type: Was this a B2B order that Order Undo refunded to the original payment method?

Turning off checkout store credit does not switch Order Undo’s saved refund method. The app warns about the mismatch rather than silently changing your policy. Consumer automatic refunds can continue as credit that customers cannot redeem until you re-enable it. Turn off Refund as store credit in Order Undo to return future automatic refunds to original payment methods.

Shopify also documents restrictions for draft orders, edited orders, and recurring subscription payments. Review its current store-credit rules and transaction fees before estimating costs. Store credit is not automatically fee-free.

How much does Order Undo cost?

Order Undo plan	Shopify plan	USD per 30 days
Basic	Basic	$3.99
Growth	Grow and Advanced	$7.99
Plus	Shopify Plus	$24.99

All three plans include optional store-credit refunds and a seven-day free trial. Check the current App Store listing before subscribing. If you are comparing workflows rather than just prices, see our Shopify order cancellation app comparison.

Frequently asked questions

Can Order Undo refund cancelled orders as store credit?

Yes. When automatic refunds and Refund as store credit are enabled, Order Undo requests store-credit refunds for eligible consumer cancellations and edits. B2B orders continue to use the original payment method.

Do store-credit refunds work with legacy customer accounts?

Order Undo requires new customer accounts and store credit enabled at Shopify checkout before you can turn on store-credit refunds. Legacy customer accounts do not meet this requirement.

Can customers choose their refund method in Order Undo?

The merchant sets the automatic refund method in Order Undo. This setting is not a customer-facing choice between store credit and the original payment method. Explain the policy before cancellation.

Does an accepted cancellation mean the store credit is ready to spend?

No. An accepted cancellation request does not confirm that a refund has completed. Check the order and customer balance in Shopify before telling a customer that credit is available.

What if I turn off store credit at Shopify checkout later?

Turning off checkout store credit does not turn off Order Undo’s saved refund preference. Automatic consumer refunds can still be issued as store credit, but customers cannot redeem it at checkout until it is re-enabled.

Is store credit included in Order Undo’s Plus plan?

Yes. Optional store-credit refunds are included across Order Undo plans: Basic at $3.99, Growth at $7.99, and Plus at $24.99 USD per 30 days. Each plan has a seven-day free trial and matches your Shopify plan.

Set the policy before you automate it

Choose the refund method, explain it to customers, and test both the cancellation and the next checkout. Staff can also use our Order Undo Sidekick prompts to check cancellation windows and find settings without changing policy in chat.

Install Order Undo from the Shopify App Store to set up customer cancellations, cart-based edits, and optional store-credit refunds.