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:
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.
A proper note appears in the customer dashboard/widget and merchant admin (backend) explaining why points were deducted.
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:
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.
A proper note appears in the customer dashboard / widget and merchant admin (backend) 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:
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.
A proper note appears in the customer dashboard / widget and merchant admin (backend)explaining why points were deducted.
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.
One product is refunded.
✅ What happens:
Points earned are adjusted based on the final effective spend (after coupon + refund).
Coupons equivalent points are not refunded and coupon value will be adjusted based on products which customers keep with themselves.
A proper note is added to the customer dashboard / widget and merchant admin (backend) 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.
📊 Example Walkthrough
Here’s a real-world style example of how it works:
Customer A has 1000 approved points.
Customer redeems 500 points for a $5 coupon → balance = 500 points.
Customer buys 2 items worth $20 in total, applies the $5 coupon → effective spend = $15. Customer earns 15 points → balance = 515 points.
Customer returns one item worth $10 → loses 10 points. Balance = 505 points.
Customer returns the remaining item:
Loses 5 points (remaining $5 spend).
Gets back 500 points (redeemed coupon is refunded).
Final balance = 1000 points.
✅ Key Rules to Remember
Full Refund of original order (points used later): 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 of discounted order: Redeemed coupon 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 (backend) for transparency.