Short answer
Store credit is a balance a merchant gives a customer that can only be spent at that merchant, usually issued instead of a cash refund. It can take the form of a gift card, a credit on the customer account, or a one-time code.Stores like it because the money stays in the business and often comes back as a second order. Customers accept it when the offer is fair and the rules are clear: how much, how to use it, whether it expires. Shopify supports store credit on customer accounts and gift cards, and many return apps offer a small bonus for choosing credit over a refund.
The support load comes from the rules nobody explained. "Where is my credit?" from a customer who returned sneakers on order #1048 and was told it was issued. "Can I use it with a discount code?" "It expired before I could spend it." "I wanted my money back, not credit." Each of these needs the actual balance or refund record, not a policy paragraph.
The common mistake is pushing credit as the only option when the customer paid for a product that failed. A customer with a broken teapot who gets credit they did not ask for writes back angry, or files a dispute with their bank. Credit works best as a genuine choice, ideally with a small reason to pick it.
Refund vs store credit vs exchange
| Option | Money leaves the store | Best when |
|---|---|---|
| Refund | yes | the product failed or the store made a mistake |
| Store credit | no, until spent | the customer changed their mind and wants something else later |
| Exchange | no | the customer wants the same item in another size or colour |
Aide looks at the order and its refund history before answering a credit question. If a verified customer would rather have a refund, Aide works out the refundable balance with any store credit taken into account, and a teammate signs off on the refund by default. The store's credit policy goes in its knowledge, so the answer about expiry or stacking matches what the store actually does. See how a refund confirmation reply explains the timing to the customer.