Use Case: How to issue Store Credit for a refund using Smart Refunder plugin

Overview

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Refunds are sometimes unavoidable, but what if you could turn them into an opportunity to retain customers and boost future sales?

By issuing store credit instead of a cash refund, you can keep the refunded amount within your store and encourage customers to shop again. With Smart Coupons, you can seamlessly provide store credits that customers can redeem for their next order.

This approach transforms refunds into re-engagement opportunities, strengthening customer loyalty and minimizing revenue loss.

Business Scenario

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You want to provide a smoother, customer-friendly refund experience while keeping sales within your store. Instead of refunding the amount back to the customer’s payment method, you issue it as store credit, which can be used for any future purchase.

Example scenarios:

• “A customer requests a refund for a returned product, and you issue them $50 in store credit to spend later.”
• “Instead of canceling an order and losing revenue, you keep the funds in circulation by offering a credit note.”

This makes the refund process rewarding for both you and your customers.

How it works with Smart Coupons

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• Store owners can issue store credit coupons equivalent to the refund amount.
• Customers receive a credit balance they can use on future orders.
• The credit amount automatically applies at checkout when the customer redeems it.

To enable issuing refunds as store credit, you can use the Smart Refunder plugin in combination with Smart Coupons.

Smart Refunder allows you to offer refund options to customers, while Smart Coupons manages the store credit creation and redemption.

To learn how to configure this with Smart Refunder, refer to this documentation.

Customer Experience

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1. A customer requests a refund for an order.
2. Instead of getting a cash refund, they receive store credit.
3. The store credit is visible under My Account -> Coupons.
4. The customer can apply the store credit on their next order and pay nothing (or less) at checkout.

Conclusion

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Issuing store credit instead of a direct refund is a powerful retention strategy. It ensures customers return to shop again while keeping revenue within your business.

With Smart Coupons managing store credits and Smart Refunder helping streamline refund requests, you can create a win-win refund process for your store and customers.