When an order is refunded, Mage reverses what the customer earned on it and adjusts their VIP tier progress. This happens automatically and is recorded in the customer's activity log.
Partial refunds
The same share of the earnings is reversed as the share of the order refunded. A $100 order that earned 500 with $20 refunded loses 100, leaving 400.
Reversals are rounded down, so a customer never loses more than the refund justifies.
Each refund on the same order is handled separately, and no refund is counted twice.
If the earnings are still pending under an approval time, the pending amount is reduced instead. Nothing is taken from the balance.
VIP spend totals are reduced by the refunded amount. The order still counts as an order.
Amount-only refunds, where you refund money without returning items, are treated the same way.
Full refunds
All remaining earnings from the order are reversed, and any pending amount is cancelled.
If earlier partial refunds already reversed some of it, only the remainder is reversed.
VIP spend and the order count are both reduced.
If the customer used a reward code on the order and the reward has Reactivate discount code on full refund turned on, the code becomes usable again.
Cancelled orders
Cancelling an order does not reverse anything by itself. Earnings are only reversed when the order is refunded.
If you refund the order when you cancel it, the refund is handled as described above: a full refund reverses everything the order earned, and a partial refund reverses a matching share.
If you cancel an order without refunding it, the customer keeps what they earned and the order still counts towards their VIP tier. Earnings still pending under an approval time are added as normal when the approval time ends.
Points or store credit spent on the order
A refund reverses what the customer earned on the order. It does not give back the points or store credit they redeemed for a discount used on that order.
The one related setting is Reactivate discount code on full refund, described above. You can turn it on for set amount and percentage discount rewards. It is not available on a flexible amount reward or a store credit redemption, and it only applies to full refunds.
Good to know
A balance never goes below zero. If a customer already spent what they earned before the refund, their balance stops at zero.
After any refund the customer's VIP tier is recalculated. If they drop below their tier's threshold, they move down.
Bonus campaign amounts follow their own rules. A tiered bonus is all or nothing, see Tiered Bonus Campaign.
Every reversal is listed in the customer's activity log with the order number, refund amount and balance before and after.