Introduction
Automatically sync points when orders are refunded, partially refunded, or voided in Shopify. This feature ensures your loyalty program remains fair by deducting points when customers return products or when an order is cancelled and the payment is voided or refunded. 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 Orders or click here to go directly there.
Scroll down to Points Refunds and Points Cancelations.
In Points Refunds, choose whether redeemed rewards should be refunded back to the customer when an order is refunded, partially refunded, or voided.
In Points Cancelations, select which order statuses should deduct points that were earned from an order.
Click Save to apply your settings.
How points are adjusted when an order is refunded or voided
When a customer receives a refund or an order is voided, 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:
Important: cancelling an order is not always enough by itself. The order usually needs to move to Refunded, Partially refunded, or Voided, or Shopify needs to send Rivo a return or refund update with refunded items. If an order is cancelled but still marked Paid and no refund or void has been processed, points are not automatically adjusted yet.
If Refund redeemed rewards on order cancellation is enabled, Rivo can also refund the points a customer spent on a reward used on the refunded order. This is separate from deducting points the customer earned from the original order.
For example, a customer might earn 100 points on an order, redeem those 100 points for a discount on a later order, and then return the original order. When the original order is refunded, Rivo deducts the 100 points earned from that order. Because those points were already spent, the customer’s balance can go negative.
Shopify Order financial status
How points are adjusted
Example scenario ($1 = 1 point)
Refunded
When an order is fully refunded through Shopify, all points earned from that order will be automatically deducted from the customer’s balance.
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.
Partially Refunded
For partial refunds, points are deducted proportionally based on the refunded items and your order earning settings. The system calculates the eligible refunded amount and deducts the matching portion of the points earned from the original order.
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.
Voided
When an order is voided in Shopify, all points earned from that order will be deducted from the customer’s balance, just like with a full refund. A cancellation only qualifies when it also voids or refunds the payment.
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 void the online order. Once voided, John will have all points from that order deducted from his account automatically.
Impact on VIP tiers
When points are deducted due to refunds or voided orders, this may affect a customer’s VIP tier status depending on your VIP program settings:
If the points deduction reduces a customer’s eligible VIP progress below their current tier threshold, they may be moved down to the appropriate tier.
Rolling-year VIP programs can recalculate the customer’s tier after processing the points adjustment. Lifetime and calendar-year VIP programs may keep the customer in their current tier instead of automatically downgrading them.
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 refunded, partially refunded, or voided in Shopify, the points adjustment is queued automatically and usually appears shortly after Rivo receives the Shopify update.
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 voided orders 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 the order is refunded or voided, do they move back to the lower tier?
Possibly. If the points deduction reduces the customer’s eligible VIP progress below their current tier threshold, they may move down to the appropriate tier based on their updated balance and your VIP program settings.