When enabled, customers can choose between store credit and a refund to their original payment method.
Where to find it: Settings > Returns > Setup, under Return Outcomes.
What the customer sees
When enabled, customers will see a prompt allowing them to choose between Store Credit and Refund as they complete the return process.
Note that merchants can adjust the resolution method manually at anytime before the return is processed.
What this is
Refunds are processed through Shopify to the card or payment method used on the original order. They're issued when the return is processed — either manually or by your auto-process automation.
Customers typically see funds within 3–5 business days after processing, though the exact timing is up to their bank.
Note that you cannot refund the customer an amount more than what is available in Shopify.
When refunds aren't available
Gift returns — the refund would go to the purchaser, not the recipient, so gift returns are limited to store credit or an exchange.
Returns of exchange, Shop Now, or replacement orders — when enabled, these resolve as store credit only.
Already refunded in Shopify — Onward won't process any refunds if the order has already been refunded in Shopify.
Turning it off
Disabling refunds makes store credit the only resolution option (plus exchanges and Shop Now, if enabled). Note that some jurisdictions require refunds in certain cases, such as defective goods — review local requirements before disabling refunds entirely.
Alternatives to disabling refunds: offer a store credit bonus to make credit the more appealing choice, or use Exceptions to disable refunds only on final-sale or heavily discounted items.
Related settings
Store Credit and store credit bonus — the alternative resolution
Deduct fees from resolution — determines whether fees come out of the refund
Automatically process return trigger — controls when the refund is actually issued