Introduction
When customers return or partially refund their orders, rediem automatically adjusts loyalty points to reflect the final spend. This ensures rewards stay fair and accurate for both merchants and customers.
Our system ensures that:
Points earned are recalculated based on the final effective spend.
Points redeemed (via coupons) are refunded back if the related product or order is returned.
Transparent notes appear in both the customer dashboard and merchant admin, explaining every points adjustment.
Overview
Case 1: Full Refunds
A – First order refunded after points are already used
Customers place their first order and earn points.
The customer redeems those points to apply a discount on a second order.
The customer then returns the first order.
What happens:
Point Balance:The customer's point balance will be reduced and the points earned from the first order will be deducted from the balance. If there are not enough points available, then point balance can also become negative.
Customer Note: A proper note appears in the customer dashboard/widget and Merchant Admin explaining why points were deducted.
Tier Adjustments: If a Customer moves from a lower tier to a higher tier due to the amount spent on the order and later decides to return the order, then his/her tier will also be downgraded.
B – Discounted order refunded
Customers place their first order and earn points.
Customers redeem points for a discount coupon and use it on their second order.
The customer returns the second order.
What happens:
Point Balance: The equivalent points redeemed via coupon are refunded back to the customer along with that the points earned on the second order will be deducted from the point balance.
Customer Note: A proper note appears in the customer dashboard / widget and Merchant Admin explaining why points were refunded and deducted.
Applies to all types of discount coupons:
Order discount
Amount discount
Percentage discount
NOTE: Shipping discount coupons or equivalent points are not refunded back.
Case 2: Partial Refunds
When part of an order is refunded, points are recalculated based on the effective purchase value.
A – Partial Refund on a standard order
The customer places an order with 2 products.
One product is refunded.
What happens:
Point Balance: Points are awarded only for the product that was kept.
Example: Order = $100 (two products worth $50 each). If one is refunded, points are adjusted as if the purchase was $50.
Customer Note: A proper note appears in the customer dashboard / widget and Merchant Admin explaining why points were deducted.
Tier Adjustments: If a Customer moves from a lower tier to a higher tier due to the amount spent on the order and later decides to return the order, then his/her tier will also be downgraded.
B – Partial Refund on an order with a discount coupon
Customer redeems points for a discount coupon.
The customer places an order with 2 products and applies the coupon, which distributes the discount proportionate to price.
One product is refunded.
What happens:
When a coupon is applied, Shopify divides the discount across the items in the cart in proportion to each item's price. That split is fixed at checkout and does not adjust afterward.
Example: When a customer who makes an order with a $100 product, a $50 product, and uses a $30 coupon, because Product A is twice the price of Product B, it carries twice the discount.
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 |
Refund amount: returning Product A refunds $80.00 — its price less the $20.00 of discount it was carrying. Not its $100.00 list price.
Points balance: points earned are reduced by the amount refunded. 120 points earned, less 80, leaves 40 points — matching the $40.00 the customer still has spent.
Coupon points: the points redeemed for the coupon are not returned. The discount stays where it was allocated and does not shift to Product B, which remains at its allocated price of $40.00.
Customer note: a note is added to the customer dashboard/widget and Merchant Admin explaining both adjustments.
Works the same for:
Order discount coupons
Amount discount coupons
Percentage discount coupons
Note: If the shipping fee is not refunded, the order is still treated as a partial refund.
Key Rules to Remember
Full Refund of original order (points used later): Points will be deducted from a customer's balance, and in certain cases, the balance can become negative if enough points are not available for deduction.
Full Refund of discounted order: A redeemed coupon's equivalent points are refunded back.
Partial Refund of standard order: Points are recalculated based on effective spend.
Partial Refund of discounted order:
Earned points are recalculated based on effective spend.
Shipping not refunded? Still treated as a partial refund.
Notes are always added in both customer dashboard / widget and Merchant Admin for transparency.
Expiration Policy for Returned Points: When points are returned to the balance for a return, the points will have a new expiration date if your points are set to expire.