Introduction
Automatically sync points when orders are refunded or canceled in Shopify. This feature ensures your loyalty program remains fair by deducting points when customers return products or cancel orders. Below, you'll find a comprehensive guide on how to configure and understand automatic points adjustments.
Customize your points refunds settings
To enable and configure automatic points adjustments, follow these steps:
From your Loyalty dashboard go to Settings.
Select Order or click here to go directly there.
Scroll down to Points Cancelations section.
Select which order statuses should trigger points adjustments by checking the appropriate boxes:
Refunded - When an order is fully refunded
Partially Refunded - When part of an order is refunded
Voided - When an order is canceled or voided
Click Save to apply your settings.
How points are adjusted when an order is refunded or cancelled
When a customer receives a refund or cancels an order, the system automatically deducts the appropriate number of points from their balance based on the order's financial status. Here's how it works for each type of adjustment:
Shopify Order financial status
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How points are adjusted
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Example scenario ($1 = 1 point)
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Refunded
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When an order is fully refunded through Shopify, all points earned from that order will be automatically deducted from the customer's balance.
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John places an order for $100 and receives 100 points. You have to refund the full order because his size is out of stock. Once you refund John through Shopify, John will have all 100 points deducted from his account automatically.
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Partially Refunded
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For partial refunds, points are deducted proportionally to the refund amount. The system calculates the percentage of the order that was refunded and deducts that same percentage of points.
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John places an order for $100 and earns 100 points. Later he decides to return an item worth $50 (50% of the order). John will have 50 points (50% of the original points) deducted from his account automatically.
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Voided/cancelled
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When an order is voided or cancelled in Shopify, all points earned from that order will be deducted from the customer's balance, just like with a full refund.
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John calls to place an order for $100, and points are awarded to his account. Later, he decides to place the order in-store instead, so you cancel the online order. Once cancelled, John will have all points from that order deducted from his account automatically.
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Impact on VIP tiers
When points are deducted due to refunds or cancellations, this may affect a customer's VIP tier status:
If the points deduction reduces a customer's total points below their current VIP tier threshold, they will automatically be moved down to the appropriate tier.
The system recalculates the customer's tier immediately after processing the points adjustment.
Customers will see the tier change reflected in their loyalty account right away.
Common questions
How long does the points adjustment take?
Once the order is cancelled or refunded in Shopify, the points adjustment usually takes 15-30 seconds to process and reflect in the customer's account.
Will the customer be notified that their points were deducted?
No. The customer won't receive an automatic notification about changes to their points balance. They will see a Points canceled - Placed an order event in their activity log when they check their loyalty account.
Will this also work on POS orders?
Yes! Points adjustments for refunds and cancellations work the same way for orders placed through Shopify POS. Check out how to Earn and spend points in-store using Shopify POS.
Will this work on custom ways to earn created with Shopify Flow?
This feature is currently compatible only with the standard "Placed an Order" earning rule and will not work with custom earning rules created through Shopify Flow. For custom earning rules, you'll need to manually adjust points in the customer's profile.
Can the app automatically adjust points on exchanged orders?
Points are automatically adjusted if the exchange includes a refund. However, if an exchange requires an additional payment from the customer, the system does not automatically award additional points. You may need to manually adjust points in these scenarios.
If a customer unlocked a VIP tier, then cancelled the order, do they move back to the lower tier?
Yes! If the points deduction causes a customer to fall below their current VIP tier threshold, they will automatically be moved down to the appropriate tier based on their updated points balance.