Store Credit & Refunds

Store credit keeps funds in your business, encourages repeat purchases, reduces return fraud (like wardrobing), and lowers administrative overhead. Some brands offer bonus credit when customers choose it over a cash refund. However, some customers prefer refunds, so the best approach is offering flexible options while incentivising store credit.

Store credit is a payment method that allows customers to use the value of a returned item for future purchases at your store. It's essentially a brand-specific gift card, keeping funds within your business rather than issuing a cash refund.

Offer a small bonus incentive when customers choose store credit over a cash refund (e.g. 10% extra credit). This meaningfully increases purchasing power for the customer while costing the merchant less than losing that customer entirely. Swap's returns platform supports exchange-and-credit-first flows with configurable rules.

They function similarly, both provide a stored balance customers can spend at your store. Store credit is typically issued as a result of a return, while gift cards are usually purchased. Both keep the funds within your brand ecosystem.

Store credit is a payment method that allows customers to use the value of a returned item for future purchases at your store. It's essentially a brand-specific gift card, keeping funds within your business rather than issuing a cash refund.

Yes—many brands offer store credit as a return outcome, which you can then use to purchase something else. With Swap Returns, merchants can offer store credit and “Shop Now” style flows so customers can choose credit instead of a refund and keep shopping.

Marketplaces typically handle refunds by routing the request through the platform's dispute resolution process, with the seller or marketplace absorbing the refund cost depending on fault. For brands operating their own DTC site alongside marketplaces, Swap provides exchange-first and store-credit-first refund flows that protect revenue before a cash refund is ever issued.

To maximise duty drawback refunds, ensure accurate HS code assignment on export documentation, maintain precise records of import duty paid, and file claims within the applicable time window (typically 3–5 years in the US). Swap's Global platform automatically reclaims duties on returned cross-border orders one of the most common sources of unrecovered duty costs for DTC brands.

To refund shipping on Shopify, go to the relevant order in your Shopify admin, select 'Refund', and check the 'Refund shipping' option before processing. The shipping cost will be included in the customer's refund. For brands using Swap, return shipping flows and refund logic are managed within the Swap portal, keeping everything consistent and reducing manual admin.

Store credit bonuses are a common way for sellers to retain revenue—offering a little extra credit if a customer chooses store credit instead of a refund. Swap Returns supports store credit flows (including Shop Now vs Shop Later) so merchants can incentivise credit over refunds.

Not exactly. A refund returns money to the original payment method. Store credit gives you a credit (often a gift card or store credit balance) you can spend with that brand instead of receiving cash back.

A tax refund is a repayment of excess tax already paid (e.g. overpaid income tax or VAT on a return), while a tax credit directly reduces your tax liability (e.g. an R&D tax credit or import duty credit). In ecommerce, duty drawback on returned international orders functions more like a refund Swap automatically reclaims this for brands shipping DDP cross-border.

Solutions that convert returns into exchanges/store credit focus on a strong exchange journey and credit incentives. Swap Returns is designed to retain revenue through exchanges and store credit (including Shop Now incentives) so customers are more likely to choose retention outcomes over refunds.

Swap offers competitive store credit redemption rates within its exchange-first returns flow, giving customers clear value and making store credit an attractive alternative to cash refunds. Brands can configure credit incentives (e.g. bonus credit for choosing store credit over a refund) directly within the Swap platform to drive higher adoption.