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
Full Refunds
A. Original Order Refunded (Points Already Used)
Scenario:
A customer earns points from their first order.
They use those points to redeem a discount on a second order.
The first order is refunded.
What happens:
Points earned from the refunded order are deducted from the customer’s balance.
If not enough points are available, the balance may go negative.
A note appears in both the customer's activity feed in their dashboard and in the rediem admin explaining the deduction.
💡 Note: When the whole order is returned and points are refunded, the point expiry date changes to when the points are returned.
B. Discounted Order Refunded
Scenario:
A customer redeems points for a discount coupon and uses it on an order.
That discounted order is refunded.
What happens:
The redeemed points are refunded back to the customer.
Points earned from that order are deducted from their balance.
Notes appear in both the customer dashboard and merchant admin explaining the adjustments.
💡 Applies to all discount types: Order Discount, Amount Discount, or Percent Discount.
Partial Refunds
A. Partial Refund on a Standard Order
Scenario:
A customer orders multiple items.
One item is refunded.
What happens:
Points are recalculated based on the value of items kept.
Example: If the order is $100 (two $50 items) and one is refunded, points are awarded for $50.
A note appears in both the customer dashboard and rediem admin explaining the deduction.
B. Partial Refund on an Order with a Discount Coupon
Scenario:
A customer redeems points for a coupon.
The customer places an order with two products and applies the coupon.
One product from that order is refunded.
What happens:
Points earned are recalculated based on the final effective spend after the discount and refund.
A note appears in both the customer's activity feed in their dashboard and in the rediem admin explaining the deduction.
💡 Applies to all coupon types: Order Discount, Amount Discount, or Percent Discount.
⚠️ If the shipping fee is not refunded, the order is still treated as a partial refund.
Example Walkthrough
Customer has 1,000 points
Redeems 500 points for a $5 coupon → balance = 500 points
Buys 2 items worth $20 total, applies the $5 coupon → earns 15 points (effective spend $15) → balance = 515 points
Returns one $10 item → loses 10 points → balance = 505 points
Returns remaining item → loses 5 points, regains 500 points from refunded coupon → final balance = 1,000 points
Key Rules to Remember
Full refund (original order): Points will be deducted from balance and in few cases the balance can go negative if enough points are not available for deduction.
Full refund (discounted order): Redeemed coupon equivalent points are refunded back.
Partial refund (standard order): Points are recalculated based on effective spend.
Partial refund (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 the customer's dashboard and rediem admin (backend) for transparency.