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Refunds and Loyalty Points

Recalculate points automatically when orders are refunded


How It Works

When a customer returns an order or receives a partial refund, points update automatically to match the final amount spent. This keeps earned and redeemed points accurate for both the customer and the merchant.

Points earned are recalculated based on the final effective spend. Points redeemed through a coupon are returned if the related product or order is refunded. A note explaining the adjustment appears in the customer dashboard and the merchant admin every time points change.

Full Refund After Points Are Redeemed

A customer earns points on a first order, then redeems those points for a discount on a second order. The customer later returns the first order.

  • The points earned from the first order are deducted from the customer's balance.

  • If the customer does not have enough points available to cover the deduction, the balance can go negative.

  • A note explaining why points were deducted appears in the customer dashboard and the merchant admin.

  • If the return drops the customer below the spend threshold for their current tier, the tier is downgraded.

Full Refund Of A Discounted Order

A customer earns points on a first order, redeems those points for a coupon, and applies the coupon to a second order. The customer then returns the second order.

  • The points redeemed for the coupon are returned to the customer's balance, and the points earned on the second order are deducted.

  • A note explaining why points were refunded and deducted appears in the customer dashboard and the merchant admin.

  • This applies to order discount, amount discount, and percentage discount coupons.

  • Shipping discount coupons do not follow this rule. Their equivalent points are not refunded.

Partial Refund Of A Standard Order

A customer places an order with two products, and one product is refunded.

  • Points are awarded only for the product that was kept.

  • Example: On a $100 order with two products worth $50 each, refunding one product adjusts points as if the purchase was $50.

  • A note explaining why points were deducted appears in the customer dashboard and the merchant admin.

  • If the refund drops the customer below the spend threshold for their current tier, the tier is downgraded.

Partial Refund Of A Discounted Order

A customer redeems points for a coupon, places an order with two products, and applies the coupon. The coupon discount splits across the items in proportion to each item's price, and that split is fixed at checkout. One product is later refunded.

  • The refund returns the product's allocated price after its share of the discount, not its full list price.

  • Points earned are reduced by the refunded amount.

  • Points redeemed for the coupon are not returned, and the discount stays allocated to the refunded product rather than shifting to the remaining product.

  • This applies to order discount, amount discount, and percentage discount coupons.

  • An order is still treated as a partial refund even if the shipping fee is not refunded.

Example Walkthrough

A customer uses a $30 coupon on an order with a $100 product (Product A) and a $50 product (Product B). The discount splits in proportion to price.

Item

List Price

Discount Carried

Allocated Price

Product A

$100.00

$20.00

$80.00

Product B

$50.00

$10.00

$40.00

Total

$150.00

$30.00

$120.00

The customer returns Product A. The refund is $80.00, Product A's allocated price after its share of the discount, not its $100.00 list price.

Points were originally earned on $120.00 of effective spend. Refunding $80.00 leaves $40.00 of effective spend, matching Product B's allocated price. The points redeemed for the $30 coupon are not returned, and the discount stays allocated to Product A rather than shifting to Product B.

Key Notes

  • Points always recalculate to match the customer's final effective spend, and the balance can go negative if it does not cover the deduction.

  • Coupon points are only refunded on a full refund of a discounted order. Partial refunds never return coupon points.

  • An unrefunded shipping fee does not change a refund's classification.

  • Every adjustment adds a note to the customer dashboard and the merchant admin, and returned points get a new expiration date if points expiration is enabled.

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