Goals and Outcomes
Understanding how loyalty points are handled for refunded or canceled orders is essential for maintaining a consistent rewards experience and a transparent loyalty program.
In this article, you’ll learn how the system automatically adjusts points when customers receive full or partial refunds, cancel orders, or return purchases where points were redeemed.
Fixed Amount Rules
Full Refunds
Earning Points
If a customer's order is marked as Refunded in Shopify, any points earned from the purchase will be removed from that customer's account.
It is possible for a customer's point balance to be negative in certain situations:
Example: A customer makes a purchase and earns points, then uses those points toward a second purchase. If the customer later returns the first item, the points earned from that purchase are removed, but since they’ve already been redeemed, the account ends up with a negative point balance.
Example: A customer earns 50 points from a purchase and then uses those 50 points to get a discount on a second order. Their balance is now 0. If they return the original purchase, 50 points are deducted from their account, bringing their total point balance to -50 points.
When a customer makes a purchase for a sum that isn't a round number (whole dollars only), their point balance will be rounded down to a whole number. The same applies for refunds.
Example: A customer makes a purchase for $49.95. The amount of points they receive is rounded down to a whole number, giving the customer 49 points. If they return the purchase, 49 points will be deducted from their rewards account.
Note
To maintain fairness and prevent potential abuse, by default, the system does not differentiate between cash refunds and store credits. Yotpo reverses loyalty points for any returned purchase, regardless of whether the refund is issued as cash or store credit.
Spending Points
If a customer's order is marked as Refunded in Shopify (100% refunded), and a reward discount was used, the points used for this discount will return to the customer's account.
Partial Refunds
Earning Points
If a customer earned points on a purchase and then that purchase is partially refunded, their points are reversed. They then earn points only for the remaining amount.
For example: If a customer earned 100 points for spending $100, and is then partially refunded $75, their earned points will be reduced to 25 to reflect the $25 they actually spent.
Spending Points
If a customer earned points on a purchase and applies those points toward another purchase, and then that purchase is partially refunded, Yotpo will not return the points used to redeem the reward coupon but will only return points for the amount returned.
For example: A customer adds $100 worth of products to their cart and applies a $20 coupon (redeemed using 200 points), bringing the total to $80. If they receive a partial refund of $70, Yotpo will not return the 200 points used for the coupon. However, the points earned on the purchase will be adjusted to reflect the $10 that was ultimately paid.
Variable Redemption Rule
Full refund in Shopify – Original order fully paid by points
When a customer’s order is marked as "Refunded" in Shopify, all points used on that order will be added back to the customer’s account.
Full refund in Shopify – Original order partially paid by points
* All points used are added back to the customer’s account.
Partial refund in Shopify – Original order fully paid by points
Some points used are added back to the customer’s account.
For example, if a customer makes a $10 purchase using 200 points and returns $3 worth of products, 60 points (equivalent to the refunded $3) will be credited back to their account.
Partial refund in Shopify – Original order partially paid by points
Points that were used for a discount on a partially refunded purchase will be added back to the customer’s account. However, the ratio of added points will be the same as the ratio of the refund compared to the original amount paid.
For example: A customer uses 100 points to get a $10 discount on a $100 purchase. If they receive a $20 refund (20% of the original purchase), then 20% of the redeemed points, which is 20 points, will be added back to their point balance.
Canceled Orders in Shopify
Free products
Dynamically added free products when canceled, the amount of points is automatically refunded to the customer.
Canceled products that were bought with points
Canceled orders that were paid entirely with rewards (and not actual money) will not have their points automatically refunded. The points will need to be manually adjusted in the relevant customer's Yotpo Loyalty profile.
Other Canceled products
All other purchases which get canceled will not have their points automatically refunded to the customer. The points will need to be manually adjusted in the relevant customer's Yotpo Loyalty profile.