Gift Cards | Refunding to a Gift Card
Keep the revenue in the store: refund a return to a gift card instead of cash, with the customer's agreement.
A return does not have to mean money leaving. Refunding to a gift card keeps the value in your store — and customers often prefer the instant resolution.
The flow
Process the return as normal (Orders → Returns).
With the customer's agreement, issue a gift card for the refund amount instead of a cash refund — Gift Cards → Issue gift card, addressed to them.
The card arrives by email immediately; no five-day wait for their bank.
The ground rules
Ask first. Statutory returns (faulty goods, distance-selling cancellations) generally entitle the customer to money back — gift-card refunds are a choice they accept, not a default you impose.
Record it: note on the order that the refund was issued as a gift card, with the card code reference.
Goodwill gestures need no such caution — a “keep the item, and here is £15 on us” card is pure win.
Tips
Offer the card with a small sweetener (refund + 10%) where the margin allows — many customers pick it over cash.
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