In this article we cover-

  1. How Rise cancels rewards that were refunded through the Rise's and Shopify's refund modules.

  2. What happens if the customer already used the store credit.

  3. How Rise returns rewards for orders where store credit was applied to.

Check out this video and our explanation below:

Canceling rewards

The store credit reward your customers received from a certain order, will automatically be canceled once that order is refunded through Shopify or Rise. Meaning, the credit the customer received will be deducted from the customer's loyalty code (if they had credit prior to the order, this credit won't be deducted).

If the order was partially refunded, the store credit that will be deducted from the customer's loyalty card will be calculated according to the updated amount of the purchase after the refund.

E.g: I made a purchase of $100 and received $10 in store credit from a workflow that was set up to issue 10% store credit based on the total amount of the purchase. If a $20 refund was issued on that order, my loyalty card balance will be now $8 in store credit (10% out of $80).

If the reward was a limited store credit reward, the limited store credit code will be disabled and a new limited store credit will be issued according to the workflow conditions and the updated amount of the purchase after the refund.

If the customer already used the store credit

If the customer has already used the store credit they've received on the order that you issued a refund on, the reward amount will be deducted according to the updated amount of the purchase after the refund was made, and to the conditions on your workflow.

In addition, customers that used their reward on the order that was refunded will be also tagged with a Shopify tag as 'Fraud'. The fraud tag will allow you to find customers who have potentially used the rewards to commit fraud, and then you can decide if you'd like to exclude these customers from receiving future rewards.

To exclude customers with the Fraud tag from receiving rewards, simply add a tag condition to your workflow -

Pro Tip- If you'd like to reduce the chances of customers using store credit they've received on refunded orders, you can choose to create 'delayed rewards'.

With this option, you can make sure the reward is sent only after the period of time in which the customer can request a refund for their item. If the order is refunded during this time, the reward will not be sent out, thus avoiding the possibility of customers using rewards they've received for refunded orders.

To set this up, go to your Rise dashboard -> Loyalty & Rewards tab. Here, edit the Workflow that is active in your store, and insert the 'delayed reward' action. Here you can edit the number of days you'd like to pass before the reward is sent to the customer.

Make sure the delayed reward action comes before any other action you have in your workflow, and make sure to add it to each tier!

Rewards adjustments for refunded orders

If a customer applied store credit to an order, and that order is refunded, the store credit will be re-loaded onto their loyalty card code.

If the order was partially refunded, the refunded amount will first be returned to the store credit applied to the order, and then to the other payment method.

Note that if a customer used limited store credit on their order, this will not be returned.

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