> For the complete documentation index, see [llms.txt](https://hthcapital.gitbook.io/izigift-help-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hthcapital.gitbook.io/izigift-help-docs/basics/refunds-via-gift-card.md).

# Refunds via Gift Card

Process refunds as gift cards instead of cash returns to retain revenue, improve customer satisfaction, and reduce refund costs. When you issue a refund as a gift card, the customer receives immediate store credit they can use on their next purchase.

{% embed url="<https://youtu.be/na-wLi66oX0>" %}

## Why Use Gift Card Refunds?

* **Retain Revenue**: Keep the money in your store instead of sending it back
* **Increase Customer Lifetime Value**: Customers often spend more than the refund amount
* **Faster Processing**: No waiting for payment processor reversals
* **Better Customer Experience**: Instant resolution without waiting for bank transfers
* **Reduce Costs**: Avoid payment processing fees on refunded transactions

## Prerequisites

Before you can issue gift card refunds:

* You need access to your Shopify admin panel to view orders
* The iziGift app must be installed and configured

## How to Issue a Refund as a Gift Card

### Step 1: Navigate to Orders

In your Shopify admin, go to the **Orders** section.

### Step 2: Select the Order

Find and click on the order you want to refund with a gift card.

### Step 3: Open More Actions Menu

Click the **More actions** button (three dots) on the order details page.

### Step 4: Select Refund with IziGift

From the dropdown menu, click **Refund with iziGift (current)**.

{% hint style="info" %}
**Note:** You may see other "Refund with iziGift" options in the dropdown, but these are deprecated options that cannot be deleted due to Shopify API limitations. Always select the option labeled "current".
{% endhint %}

### Step 5: Review Pre-Populated Information

The refund modal will open with several fields automatically filled in:

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* **First Name**: Customer's first name from the order
* **Last Name**: Customer's last name from the order
* **Email**: Customer's email address from the order
* **Amount**: The full order amount (you can adjust this)
* **Expiration Date**: Optional; leave empty for no expiration
* **Internal Note**: Default note stating "This order was refunded using a iziGift gift card."

### Step 6: Adjust the Refund Amount (Optional)

The **Amount** field is pre-populated with the full order total, but you can modify it:

* **You can refund less** than the order amount for partial refunds
* **You cannot refund more** than the order amount - the system will show an error if you try

{% hint style="warning" %}
**Important:** The maximum refund amount is capped at the order total. If you try to enter a higher amount, you'll see an error message and won't be able to proceed until you adjust it.
{% endhint %}

### Step 6b: Set Expiration Date (Optional)

In the refund modal, use the **Expiration Date** field to set when the gift card will expire. Leave it empty if you do not want the gift card to expire. If you enter a date, it must be in the future—the system will show an error if you select a past or today's date.

### Step 7: Review or Modify Internal Note

The **Internal Note** field contains a default message: "This order was refunded using a iziGift gift card."

{% hint style="warning" %}
**Required Field:** You must have an internal note for tracking purposes. The system will prevent you from issuing the refund if this field is empty.
{% endhint %}

You can customize this note, but we recommend keeping some reference to the refund for record-keeping purposes. This note is for internal use only and is not visible to the customer.

**Tip:** Include details like:

* Reason for refund (e.g., "Item damaged in shipping")
* Items being refunded if partial refund
* Support ticket number
* Any special circumstances

### Step 8: Issue the Gift Card

Click the **Issue Refund** button to complete the refund.

**What happens next:**

1. The gift card is created in Shopify with the specified amount
2. The customer immediately receives an email with their gift card code and instructions
3. All line items from the original order are refunded in Shopify (with no restock)
4. The order is closed in Shopify
5. An internal note is added to the order with your message

{% hint style="warning" %}
**Important:** When you issue a refund via gift card, iziGift automatically processes a refund for all line items in the order through Shopify's API and closes the order. This ensures proper accounting in Shopify while retaining the revenue as store credit.
{% endhint %}

## Viewing Issued Refund Gift Cards

After issuing a refund as a gift card:

1. Go back to your iziGift admin panel
2. Navigate to the gift cards section
3. You'll see the newly issued gift card in your list

The gift card will include:

* Customer information
* Gift card code
* Refund amount
* Issue date
* Any notes you added

### Customizing the refund gift card email

The email that customers receive when you issue a refund as a gift card uses the same template as other issued gift cards. To change how that email looks or what it says, edit the **issued gift card email template** in iziGift (e.g. in your email or template settings). Any changes you make there will apply to refund gift card emails as well.

## Tips & Best Practices

### Communication

* **Inform customers first**: Let customers know you'll be issuing store credit before processing the refund
* **Explain the benefits**: Mention that gift cards are instant (no waiting for bank transfers)
* **Provide expiration details**: If you set an expiration date in the refund modal, communicate it clearly to the customer

### Partial Refunds

* Use partial refunds when only some items in an order need to be returned
* Keep the refund amount fair and transparent
* Document the reason in the internal note (e.g., "Partial refund - damaged item")

### Record Keeping

* Always add meaningful internal notes to help track refund reasons
* Include information like: return reason, condition of returned items, or support ticket numbers
* This helps with accounting and future customer service interactions

### Customer Service

* Process refund gift cards quickly to maintain customer trust
* Be flexible with customers who prefer cash refunds (when your store policy allows)
* Use the instant nature of gift cards as a positive selling point

## Troubleshooting

### I don't see "Refund with iziGift" in the More Actions menu

**Solution:** Make sure you have:

* Installed and activated the iziGift app
* Enabled the iziGift admin action extension in your Shopify settings
* Properly configured the app permissions in Shopify

If the option still doesn't appear, try refreshing your browser or logging out and back into Shopify admin. If it still doesn't work message support.

### The customer says they didn't receive the gift card email

**Solutions:**

1. Check the customer's spam/junk folder
2. Verify the email address in the order is correct
3. Go to the iziGift admin panel and resend the gift card email
4. Check your email template settings in iziGift

### The system won't let me issue the refund

**Common issues:**

1. **Internal note is empty** - You must include an internal note for tracking purposes
2. **Amount exceeds order total** - The refund amount cannot be more than the original order amount
3. **Invalid email address** - Check that the customer's email is valid
4. **Order over 60 days old** - You may need to grant additional permissions (the system will prompt you)

### I selected the wrong refund amount

**Solution:**

* Contact the customer and issue an additional gift card for the difference
* Or work with them to adjust the original gift card value through iziGift support

### What happens to the inventory when I issue a refund?

The refund is processed with `"restock_type": "no_restock"`, meaning inventory is **not** automatically restocked. This is because:

* The customer may not have returned the items yet
* You may have a different restocking process
* It gives you control over inventory management

If you want to restock items, you'll need to do this manually in Shopify after the refund is issued.

### Can I cancel a gift card refund?

Once a gift card is issued as a refund, you cannot automatically cancel it. However, you can:

* Manually deactivate the gift card in your iziGift admin panel
* Issue a new refund with the correct amount
* Contact iziGift support for assistance with complex refund situations

## Frequently Asked Questions

### Do gift card refunds affect my Shopify order status?

Yes. When you issue a refund via gift card through iziGift:

1. **All line items are refunded** - iziGift processes a refund for all line items in the order through Shopify's Refunds API (with no restocking)
2. **Order is closed** - The order is automatically closed in Shopify
3. **Internal note is added** - Your internal note is added to the order for tracking
4. **Order shows as refunded** - In Shopify, the order will show as refunded, but the revenue stays in your store as a gift card
5. **All products are removed from the order** - When you do the refund, iziGift removes all products (line items) from the order in Shopify. You cannot refund only some items—the entire order is refunded.

This ensures your Shopify accounting is accurate while retaining the revenue as store credit.

### Can customers use refund gift cards immediately?

Yes! Gift cards issued as refunds are active immediately and can be used on the customer's next purchase.

### Are there fees for processing gift card refunds?

No, there are no additional fees for issuing gift cards as refunds within iziGift. This actually saves you money compared to payment processing fees on traditional refunds.

### Can I set expiration dates on refund gift cards?

Yes. You can set an expiration date directly in the **Refund with iziGift** modal when issuing a refund gift card:

1. Open the refund modal (More actions → Refund with iziGift (current))
2. Use the **Expiration Date (Optional)** field to pick a date
3. Leave the field empty if you do not want the gift card to expire
4. If you enter a date, it must be in the future (the modal will show an error for past or today's dates)

The expiration date is sent to Shopify's gift card API and is enforced by Shopify. You can set a different expiration date for each refund gift card, or leave it blank for no expiration.

### What if the customer prefers a cash refund?

Gift card refunds are at your discretion based on your store's refund policy. You can always process a traditional Shopify refund if needed or if your store policy requires it.

## Support

If you need help with gift card refunds, contact us through the in-app chat or email <henry@izigift.co>.

***

**Related Documentation:**

* [Issuing Gift Cards](https://github.com/iziGift/iziGift-shopify/blob/master/gitbook/basics/basics/issuing-gift-cards/README.md)
* [Bulk Issue Gift Cards](https://github.com/iziGift/iziGift-shopify/blob/master/gitbook/basics/basics/issuing-gift-cards/bulk-issue-gift-cards.md)
* [Klaviyo Integration](https://github.com/iziGift/iziGift-shopify/blob/master/gitbook/basics/basics/klaviyo-integration.md)