Configure Shopify Refund Priority
Plans: All plans Platforms: Shopify
AfterShip Returns offers merchants the option to provide their customers refunds to their original payment method, whether debit, credit card, or store credit/gift card. This way customers can get their money back and return the item without any hassle. To protect the interest of your customers and your business, you can set the refund priority for Shopify orders that are paid with multiple payment options like credit cards and gift cards. This setting helps manage refunds effectively, especially for customers using combined payment methods.
In this tutorial, we will show you:
Set up refund priority for Shopify orders
Processing refunds in AfterShip Returns
Example
Go to Refunds and exchanges under Return policy in AfterShip Returns admin
Move to Refund resolutions.
Shift the toggle to the right to activate the Refund to original payment method option.
Click Edit to customize the customer-facing text and title that will be displayed on the branded returns page when the customer is submitting a return request.
Move to Settings to set the Refund priority for Shopify orders that are paid using multiple payment methods like a gift card and credit card. This means an order is placed using the gift card amount and the remaining amount is paid through the customer’s preferred payment method.
Select the payment method from the supported options. This will ensure that the option that is selected will be prioritized during refund initiations. Therefore, out of the total refund amount, the amount equivalent to what is paid through that selected option will be considered and the refund will go there first.
a. Gift card: Choose this if you want refunds to go back to the gift card first.
Gift cards include Shopify gift cards, store credits, and royalty points.
b. Credit card: Choose this if you prefer refunds to go to the credit card first.
Credit cards include debit cards, wallets, credit cards, and UPI payments. Anything apart from what is covered under gift cards will be refunded to the customer’s credit card.
By default, the system prioritizes refunds to store credit or gift cards first, followed by credit cards. Merchants have the option to change this setting to prioritize credit card refunds instead.
Refund priority settings will impact how your refund is processed in AfterShip Returns, both manually and automatically.
Manual refund processing
Pending refund
If the original order is paid by multiple payment method, all gift card and store credit values will summarize together under Refund section when you are initiating a refund for an RMA, and show on the available value of the Gift card field and the remaining return value will be refunded to your Credit card (original payment method).
Refunded
Once the refund is completed, you can view the refunded details on the summary card and timeline.
For instance, if an order totaling $215 is paid with $187 from a credit card and $28 from a gift card, upon initiating a refund, the gift card value would be reflected as $28 available for future use while the remaining balance of $187 would be reflected as the value refunded to your credit card.
After the refund is processed, the summary card will show that the $28 has been refunded back to the gift card and $187 to your credit card, and this will be updated in the timeline.
If Auto-refund for RMAs where customers have opted for Refund to original payment method is enabled in your AfterShip Returns admin under Automation rules, the refund will be processed automatically based on the refund priority settings.
2 items are bought at $100 each, totaling $200.
Payment Methods: The order is placed using two payment methods.
a. By Credit Card, $150 was paid.
b. By Gift Card, $50 was redeemed.
The customer returns 1 item bought for $100.
If refunding to a Credit Card is selected to be prioritized first: The system refunds $100 to the credit card.
If refunding to a Gift Card is selected to be prioritized first: The system refunds $50 to the gift card (depleting it) and then refunds the remaining $50 to the credit card.
Overview
AfterShip Returns offers merchants the option to provide their customers refunds to their original payment method, whether debit, credit card, or store credit/gift card. This way customers can get their money back and return the item without any hassle. To protect the interest of your customers and your business, you can set the refund priority for Shopify orders that are paid with multiple payment options like credit cards and gift cards. This setting helps manage refunds effectively, especially for customers using combined payment methods.
What you’ll learn
In this tutorial, we will show you:
Set up refund priority for Shopify orders
Processing refunds in AfterShip Returns
Example
Set up refund priority for Shopify orders
Go to Refunds and exchanges under Return policy in AfterShip Returns admin
Move to Refund resolutions.
Shift the toggle to the right to activate the Refund to original payment method option.
Click Edit to customize the customer-facing text and title that will be displayed on the branded returns page when the customer is submitting a return request.
Move to Settings to set the Refund priority for Shopify orders that are paid using multiple payment methods like a gift card and credit card. This means an order is placed using the gift card amount and the remaining amount is paid through the customer’s preferred payment method.
Select the payment method from the supported options. This will ensure that the option that is selected will be prioritized during refund initiations. Therefore, out of the total refund amount, the amount equivalent to what is paid through that selected option will be considered and the refund will go there first.
a. Gift card: Choose this if you want refunds to go back to the gift card first.
Gift cards include Shopify gift cards, store credits, and royalty points.
b. Credit card: Choose this if you prefer refunds to go to the credit card first.
Credit cards include debit cards, wallets, credit cards, and UPI payments. Anything apart from what is covered under gift cards will be refunded to the customer’s credit card.
By default, the system prioritizes refunds to store credit or gift cards first, followed by credit cards. Merchants have the option to change this setting to prioritize credit card refunds instead.
Processing refunds in AfterShip Returns
Refund priority settings will impact how your refund is processed in AfterShip Returns, both manually and automatically.
Manual refund processing
Pending refund
If the original order is paid by multiple payment method, all gift card and store credit values will summarize together under Refund section when you are initiating a refund for an RMA, and show on the available value of the Gift card field and the remaining return value will be refunded to your Credit card (original payment method).
Refunded
Once the refund is completed, you can view the refunded details on the summary card and timeline.
For instance, if an order totaling $215 is paid with $187 from a credit card and $28 from a gift card, upon initiating a refund, the gift card value would be reflected as $28 available for future use while the remaining balance of $187 would be reflected as the value refunded to your credit card.
After the refund is processed, the summary card will show that the $28 has been refunded back to the gift card and $187 to your credit card, and this will be updated in the timeline.
If Auto-refund for RMAs where customers have opted for Refund to original payment method is enabled in your AfterShip Returns admin under Automation rules, the refund will be processed automatically based on the refund priority settings.
Example
2 items are bought at $100 each, totaling $200.
Payment Methods: The order is placed using two payment methods.
a. By Credit Card, $150 was paid.
b. By Gift Card, $50 was redeemed.
The customer returns 1 item bought for $100.
If refunding to a Credit Card is selected to be prioritized first: The system refunds $100 to the credit card.
If refunding to a Gift Card is selected to be prioritized first: The system refunds $50 to the gift card (depleting it) and then refunds the remaining $50 to the credit card.
Updated on: 11/10/2024
Thank you!