Partial Refunds
When a customer receives a partial refund on an order, two things happen:
Points are proportionally reversed
We calculate the percentage of the order that was refunded and reverse that same percentage of the points earned.
Example:
A customer places a $100 order and earns 500 points. They later return $20 worth of items.
Refund ratio: $20 / $100 = 20%
Points reversed: 20% of 500 = 100 points
Customer keeps the remaining 400 points
We always round down when calculating partial point reversals. For example, if the math works out to 109.89 points, we reverse 109 — not 110. This ensures your customers are never over-compensated.
VIP tier spend is adjusted
If you use VIP tiers based on spend, the refunded amount is subtracted from the customer's lifetime, calendar year, and rolling year spend totals. Order counts are not affected by partial refunds — the order still happened, just at a lower value.
Amount-only refunds
Shopify supports two types of refunds: line-item refunds (returning specific products) and amount-only refunds (refunding an arbitrary amount without restocking items). Both are handled identically by the loyalty program — the refunded amount is used to proportionally reverse points and adjust spend.
Multiple partial refunds
If a customer makes multiple returns on the same order (e.g. returning items in batches), each refund is processed independently. We track every refund to prevent any single return from being counted twice.
Example:
Order: $100, 500 points earned
First return: $20 refunded → 100 points reversed (400 remaining)
Second return: $30 refunded → 150 points reversed (250 remaining)
Pending points
If points haven't been approved yet (still in a waiting period) when a partial refund comes in, we reduce the amount that will be awarded when the waiting period ends. No points are deducted from the customer's balance since they were never added.
Full Refunds
When an order is fully refunded, all points earned from that order are reversed and any pending points are cancelled.
Points reversal
Approved points: The full remaining balance of earned points is deducted from the customer's account
Pending points: Cancelled before they can be awarded
Already partially refunded: Only the remaining points (after prior partial refunds) are reversed — we never double-deduct
VIP tier progress
For full refunds, both the spend amount and the order count are reversed from the customer's tier progress. If partial refunds already reversed some of the spend, only the remainder is deducted.
Tier recalculation
After any refund (partial or full), we automatically recalculate the customer's VIP tier. If the refund drops them below their current tier's threshold, they may be moved to a lower tier.
Discount code reactivation
When enabled on the loyalty reward, if the customer used a loyalty reward discount code on the refunded order, the discount code is reactivated so they can use it again. This only applies to full refunds.
Activity Log
Every refund action is recorded in the customer's activity log with details including:
The number of points reversed or cancelled
Which earning rule was affected
The order number and refund amount
The customer's point balance before and after
This gives you full visibility into how refunds impact each customer's loyalty balance.
Key Protections
Protection | How it works |
Balance floor | A customer's point balance can never go below zero. |
Partial-then-full safety | If partial refunds already reversed some points or spend, a subsequent full refund only reverses the remainder. |
FAQ
Q: Will my customer lose points immediately after a partial refund?
Yes, approved points are deducted right away and the customer's balance updates in real time.
Q: What if a customer spent their points before the refund?
The reversal still happens, but their balance will never go below zero. For example, if they earned 500 points, spent 400 on a reward, and then receive a refund for 200 points, their balance goes to 0 (not -100).
Q: What happens to pending points if there's a refund?
For partial refunds, the pending amount is reduced proportionally. For full refunds, pending points are cancelled entirely. Either way, the customer is never awarded points for refunded items.