Refund an order to a gift card in Shopify
When a customer paid with a gift card and then returns something, the refund goes back to that gift card first. If the customer paid with a gift card and another method, a partial refund is applied to the gift card first, until the gift card reaches the full amount available for refund, and the rest goes to the other payment methods. You can adjust the split by hand, up to the amount available for each method.
Written · Shopify admin, desktop steps · 5 minutes read
The worked example
| Order | $120.00, paid $50.00 by gift card and $70.00 by card |
| Partial refund | $50.00 |
| Refund to gift card | $30.00 |
| Refund to credit card | $20.00 |
| Gift card balance after | Restored by $30.00 |
Download the record: gift-card-refund-log.csv (126 bytes).
A refund log for the orders in this tutorial, with the refund split between the gift card and the credit card for each. The refund column sums to $80.00.
1Open the order
From your Shopify admin, go to Orders. Open the order you are refunding. In this tutorial order #1051 is $120.00, paid $50.00 by gift card and $70.00 by credit card.
2Click Refund
In the Order Details section, click Refund. You can refund an entire order or only part of an order from the Orders page in your Shopify admin.
3Enter the items and the amount
Enter the quantity of the items you are refunding and the amount. In this tutorial the partial refund is $50.00.
4Read the suggested split
If an order has multiple transactions and you issue a partial refund, then a suggested split for how the refund applies to each transaction is displayed. If the order includes a gift card, then the suggestion tries to refund the gift card in full first. You can adjust the refund amount manually for each payment method, up to the amount available for each payment method.
5Apply the split
In this tutorial the split is $30.00 to the gift card and $20.00 to the credit card, which is the example on the help page. The gift card balance is restored by $30.00, and the credit card is refunded $20.00. If the refund were $30.00 or less, the whole refund could go to the gift card.
6Confirm the refund
Confirm the refund and check the order timeline. The refund is recorded there, and the gift card balance shows the restored amount. In the second example in this tutorial, a $30.00 refund on a $90.00 order goes entirely to the gift card, so the gift card refund is $30.00 and the credit card refund is $0.00.
The arithmetic
The $50.00 split of $30.00 to the gift card and $20.00 to the credit card is the example on the help page:
| Order | Partial refund | To gift card | To credit card |
|---|---|---|---|
| #1051, $120.00 | $50.00 | $30.00 | $20.00 |
| #1052, $90.00 | $30.00 | $30.00 | $0.00 |
| Two refunds together | $80.00 | $60.00 | $20.00 |
The two partial refunds total $80.00: $50.00 plus $30.00. Of that, $60.00 goes back to gift cards and $20.00 goes back to credit cards. A refund cannot exceed the amount available for each payment method, so the split always adds up to the refund total.
Held at the counter
The suggestion is not a rule. The suggested split tries to refund the gift card in full first, but you can adjust the refund amounts manually for each payment method up to the amount that is available for each payment method. If the customer asks for the refund on the card instead, adjust it before you confirm.
A return must come before the refund if items are coming back. You can refund an order without creating a return, but you cannot create a return after a refund has been issued. If the items are being returned, create the return first, then refund.
Some payment types cannot be refunded to a gift card. Refunds to gift card must be within the gift card purchase limit for the local currency, and split refunds that include an Interac transaction cannot be refunded to a gift card. Check the limits before you promise the customer a gift card refund.
Sources
- Refunding orders — Shopify's help pages: the refund steps, the suggested split that refunds the gift card first, and the $30.00 and $20.00 split example.