How to Give Store Credit on Shopify

Store credit is one of the most effective tools Shopify merchants have for driving repeat purchases. Unlike discount codes that get lost in inboxes or shared on coupon sites, store credit sits in a customer's account as a visible balance. It feels like real money, and customers treat it that way.

This guide covers three ways to issue store credit on Shopify, why store credit consistently outperforms coupons, and how to set up an automatic cashback wallet that credits customers on every purchase.

What is store credit on Shopify?

Store credit is a monetary balance attached to a customer's account that they can apply toward future purchases. It works like a prepaid balance at your store. Customers see their credit, know exactly what it's worth, and can spend it in one click at checkout.

Shopify supports store credit natively through gift cards and through the Store Credit API introduced in 2023. Third-party apps can also manage store credit through cashback wallets and loyalty programs.

Method 1: Manual store credit through Shopify Admin

The simplest way to issue store credit is directly from your Shopify admin. Go to Customers, select a customer, and issue a gift card to their email. This gift card functions as store credit since the customer can apply it at checkout.

This method works for one-off situations like resolving a support ticket, compensating for a shipping delay, or rewarding a loyal customer manually. The downside is that it does not scale. If you want to credit hundreds of customers automatically, you need a different approach.

Steps: Open Shopify Admin, go to Products then Gift Cards, click Issue Gift Card, enter the amount, assign it to the customer's email, and send. The customer receives an email with a gift card code they can apply at checkout.

Method 2: Gift cards as store credit

Some merchants use Shopify gift cards systematically as store credit. You can create gift cards in bulk and distribute them to customers who meet certain criteria, such as spending over a threshold or being a subscriber for six months.

This approach is more scalable than manual credits but still requires effort to manage. Gift cards are not automatically tied to purchase behavior, so you need to track eligibility and distribution yourself or use a Shopify Flow automation.

The main limitation is visibility. Customers have to remember they have a gift card and dig up the code at checkout. There is no persistent balance displayed in their account portal. This reduces redemption rates compared to a dedicated store credit wallet.

Method 3: Automatic cashback wallet with subZwallet

The most effective way to give store credit on Shopify is through an automatic cashback wallet. SubZwallet's cashback feature credits customers with real store credit on every purchase, subscription renewal, or custom trigger you define.

Here is how it works: A customer buys a $60 product. You have cashback set to 5%. The customer instantly receives $3.00 in their wallet. This balance is visible in their customer portal every time they log in. When they return to buy again, they can redeem their wallet balance in one click at checkout.

The cashback wallet is fully automatic. No manual gift card creation, no code distribution, no tracking spreadsheets. Credits accumulate with every qualifying purchase, and the visible balance creates a reason to come back.

Setup steps: Install subZwallet from the Shopify App Store. Go to the Cashback section in your subZwallet dashboard. Set your cashback percentage (most merchants start with 3-5%). Choose which products or collections qualify. Enable the wallet widget in your customer portal. Customers start earning immediately on their next purchase.

Why store credit beats coupons

Merchants who switch from discount codes to store credit consistently see higher repeat purchase rates. Here is why store credit converts roughly 2x better than coupon codes:

Visible balance creates urgency: When a customer logs in and sees $12.50 in their wallet, it feels like leaving money on the table if they do not use it. A coupon code sitting in an old email does not create the same pull.
No code hunting: Customers do not have to search their inbox, remember a code, or copy-paste at checkout. The credit is already in their account, ready to apply in one click.
Feels like real money: Store credit has a dollar value. A 15% off coupon requires mental math. $8.00 in your wallet is concrete and tangible.
No public sharing: Discount codes leak to coupon sites. Store credit is tied to an individual account and cannot be shared or posted online.
Stacks with behavior: Cashback wallets grow over time. The more a customer buys, the larger their balance becomes, creating a compounding incentive to stay loyal.

How subZwallet's cashback wallet works

SubZwallet's cashback wallet is built specifically for Shopify merchants who want store credit on autopilot. Here is what makes it different from manually issuing gift cards:

Auto-credit on purchases: Set a cashback percentage and customers earn wallet credit on every order. Works for one-time purchases and subscription renewals.
Visible in customer portal: Customers see their wallet balance every time they log into their account. No codes to remember, no emails to dig through.
One-click redeem at checkout: Customers apply their wallet balance directly at checkout with a single click. No gift card code needed.
Configurable rules: Set different cashback rates by product, collection, or customer tier. VIP customers can earn higher cashback rates.
Works with subscriptions: Subscription renewals automatically trigger cashback credits. This rewards long-term subscribers and reduces churn.

Step-by-step: Setting up store credit with subZwallet

Getting store credit running on your Shopify store takes about 10 minutes with subZwallet:

Step 1: Install subZwallet from the Shopify App Store and complete the onboarding wizard.
Step 2: Navigate to the Cashback section in your subZwallet dashboard.
Step 3: Set your base cashback rate. We recommend starting at 3-5% for most stores. You can adjust this later based on your margins.
Step 4: Choose qualifying products. You can apply cashback to all products, specific collections, or only subscription orders.
Step 5: Enable the wallet widget in your theme. SubZwallet provides a customer portal block that displays the wallet balance.
Step 6: Optional — set up VIP tiers with escalating cashback rates. For example, 3% for all customers, 5% for Silver tier, 7% for Gold tier.
Step 7: Test the flow by placing a test order. Verify the cashback credit appears in the test customer's wallet.

Once enabled, the system runs automatically. Every qualifying purchase triggers a wallet credit, and customers can see and redeem their balance without any action from your team.

Which method should you choose?

For one-off credits (support resolutions, apology credits), manual gift cards through Shopify Admin work fine. For systematic store credit that drives repeat purchases at scale, an automatic cashback wallet is the clear winner. It removes manual work, increases visibility, and creates a compounding loyalty loop that discount codes simply cannot match.

SubZwallet's Growth plan at $149/mo includes the cashback wallet along with subscriptions, loyalty points, VIP tiers, and automation flows. For merchants already paying for separate subscription and loyalty apps, this often reduces total app spend while adding cashback as a bonus. For more information on how Shopify handles store credit natively, see Shopify's gift card documentation (https://help.shopify.com/en/manual/products/gift-cards).

Frequently Asked Questions

Can I issue store credit without an app?: Yes. You can issue store credit manually through Shopify Admin by creating gift cards and sending them to customers. This works for one-off credits but does not scale for automatic cashback or ongoing loyalty programs.
Is store credit the same as a gift card on Shopify?: They are related but not identical. A gift card is a code-based product that can be purchased or gifted. Store credit is a balance tied to a customer account. On Shopify, gift cards are often used as the underlying mechanism for store credit, but a dedicated cashback wallet provides a better customer experience with visible balances and one-click redemption.
Can store credit expire on Shopify?: Shopify gift cards do not expire by default in most regions due to consumer protection laws. If you use a third-party cashback wallet like subZwallet, you can configure expiration rules, but most merchants leave credits non-expiring to maximize redemption and customer goodwill.
How does a cashback wallet differ from store credit?: A cashback wallet is a type of store credit that is earned automatically based on purchase behavior. Traditional store credit is typically issued manually or as a one-time gesture. A cashback wallet accumulates over time with every purchase, creating a growing balance that incentivizes repeat buying.