Refund to Discount Code

What is Discount Code Refund?

When customers choose "Refund to Discount Code" as their refund resolution, they receive a unique discount code that can be applied to future purchases. This method benefits both merchants and customers by keeping revenue within the store while providing flexibility for shoppers.

1. 1Customer requests a return and selects "Discount Code" as refund method
2. 2Merchant approves the return request
3. 3Returndotai auto-generates a discount code in Shopify
4. 4Customer receives the discount code via email
5. 5Customer applies the code at checkout for their next purchase
6. 6Code value is based on return amount and configured percentage

Video Tutorial

Watch this instructional video to see what happens when customers choose "Refund to Discount Code" as their resolution method.

Step 1: Enable Discount Code Feature

The discount code refund feature is available in your Returndotai account. Once enabled, customers will be able to select "Refund to Discount Code" as their refund option when creating return requests.

1. 1Ensure your Returndotai account has the discount code feature enabled
2. 2Verify Shopify integration has discount creation permissions
3. 3Configure return reasons in Settings > Reasons to control which products are returnable
4. 4When customers create return requests, they will see "Discount Code" as a refund option
5. 5The discount code amount will be based on the return value
6. 6Approve return requests that select discount code as the refund method
7. 7Returndotai will automatically generate the discount code in Shopify
8. 8Customers receive the code via email notification

Step 2: Set Up Notifications to Shoppers

To ensure customers receive their discount codes, you need to verify your sender information and enable the discount code notification template.

1. 1Navigate to Notifications section in Returndotai
2. 2Click on the "Sender info" tab
3. 3Verify your email address:
4. 4 • Enter your business email
5. 5 • Complete email verification process
6. 6 • Ensure the email can send notifications
7. 7This email will be used to send discount codes to customers

Step 3: Enable Notification Templates

Enable the notification template specifically for discount codes so customers receive their codes automatically.

1. 1Stay in the Notifications section
2. 2Find notification templates list
3. 3Locate "Discount code refund" or "Refund to discount code" template
4. 4Enable the template toggle
5. 5Customize the email content (optional):
6. 6 • Update subject line
7. 7 • Modify email body text
8. 8 • Add usage instructions
9. 9 • Include expiration information
10. 10Save template changes

Selecting Discount Code in Returns Portal

When shoppers create a return request, they can choose "Refund to Discount Code" as their preferred refund method.

1. 1Customer accesses the returns portal
2. 2Enters order number and email
3. 3Selects items to return
4. 4Chooses refund method
5. 5Selects "Refund to Discount Code" option
6. 6Sees discount value information
7. 7Submits return request
8. 8Awaits merchant approval

1. View Request Details

You can find and check return requests by going to the Management tab. Requests with discount code refunds will show "Refund to Discount Code" as the resolution.

1. 1Navigate to Management tab in Returndotai admin
2. 2View list of return requests
3. 3Click on a request to see details
4. 4Resolution field shows "Refund to Discount Code"
5. 5Review return items and amounts
6. 6Verify customer information

2. Approve and Issue Discount Code

After you approve the return request, the "Refund" button will appear. Clicking it will generate the discount code and notify the customer.

1. 1Click "Approve" on the return request
2. 2The "Refund" button appears after approval
3. 3Click the "Refund" button
4. 4Review discount code details in the modal
5. 5Click "Submit" to issue the discount code
6. 6System auto-generates discount code in Shopify
7. 7Customer receives email notification with code
8. 8Discount code is now active and ready to use

How Discount Codes Are Generated

After submitting the refund, a discount code will be auto-generated in your Shopify admin with the configured value type and amount.

1. 1Returndotai creates discount code in Shopify
2. 2Code uses the prefix you configured (e.g., RETURN-12345)
3. 3Discount type is set based on your configuration:
4. 4 • Fixed amount: Specific dollar value
5. 5 • Percentage: Percentage of return value
6. 6Code is automatically applied to customer account
7. 7Code details are logged in Returndotai
8. 8Expiration date set (if configured)

Discount Calculation Example

For example, if a customer returns an order worth $100 and the merchant setup discount value is 10%, here's how it works:

• Return value: $100
• Discount configuration: 10% of return value
• Calculation: $100 × 10% = $10
• Generated discount code value: $10 fixed amount
• Customer can use this $10 code on their next order

Viewing Discount Codes in Shopify

All discount codes generated through Returndotai are visible in your Shopify admin.

1. 1Go to Shopify admin
2. 2Navigate to Discounts section
3. 3View all discount codes
4. 4Find codes with your configured prefix
5. 5Click on a code to see details:
6. 6 • Code value
7. 7 • Usage status (used/unused)
8. 8 • Customer association
9. 9 • Expiration date
10. 10 • Usage limits
11. 11Track redemption rates

Receiving the Discount Code

After the merchant issues the discount code, customers automatically receive an email with the code and usage instructions.

1. 1Customer receives email notification
2. 2Email contains unique discount code
3. 3Shows discount value
4. 4Includes instructions on how to apply
5. 5Displays expiration date (if applicable)
6. 6Contains link to shop

Applying Discount Code at Checkout

Shoppers can use this code to get a discount on their next order.

1. 1Customer shops and adds items to cart
2. 2Proceeds to checkout
3. 3Finds "Discount code" or "Gift card or discount code" field
4. 4Enters or pastes the discount code
5. 5Clicks "Apply"
6. 6Discount is applied to order total
7. 7Customer completes purchase
8. 8Code is marked as used in Shopify

Choosing Effective Prefixes

Use clear, recognizable prefixes (e.g., RETURN, REFUND, EXCHANGE)

• Keep prefixes short (5-8 characters) for easy typing
• Make prefixes brand-specific to prevent confusion
• Use consistent prefixes across all discount code types
• Avoid special characters that are hard to type

Setting Discount Values

Percentage discounts (e.g., 10%) are simpler for customers to understand

• Fixed amounts work better for standardized refunds
• Consider offering slightly less than full refund to cover processing
• Test different values to find what drives best conversion
• Communicate discount value clearly in the portal and emails

Expiration Strategy

Set reasonable expiration dates (30-90 days recommended)

• Shorter expirations create urgency (30 days)
• Longer expirations improve customer satisfaction (90 days)
• Clearly communicate expiration in email notifications
• Send reminder emails before codes expire
• Check local laws regarding discount code expiration

Email Optimization

Ensure sender email is verified to prevent spam filtering

• Include clear subject lines: "Your $X Discount Code is Ready!"
• Make the discount code prominent and easy to copy
• Add a "Copy Code" button in the email
• Include step-by-step instructions on how to redeem
• Link directly to popular product categories

Common Issues and Solutions

Key points to understand:

• Code not generating: Check Shopify app permissions and connection
• Email not received: Verify sender info and email template is enabled
• Code not working: Ensure code is active in Shopify and not expired
• Wrong discount amount: Review percentage/fixed amount settings
• Customer can't apply code: Check if code has usage limits or restrictions
• Code already used: Verify single-use vs. multi-use configuration

Shopify Permissions

If discount codes are not being generated, verify that Returndotai has the necessary Shopify permissions.

1. 1Check that Returndotai app is connected to Shopify
2. 2Ensure app has "Write discounts" permission
3. 3Ensure app has "Read discounts" permission
4. 4Update permissions if needed
5. 5Reconnect app if permission issues persist

Testing Discount Codes

Before going live, test the discount code workflow to ensure everything works correctly.

1. 1Create a test return request
2. 2Select "Refund to Discount Code" option
3. 3Approve the request and issue discount code
4. 4Check if code appears in Shopify admin
5. 5Verify email notification is sent
6. 6Test applying the code at checkout
7. 7Confirm discount amount is correct
8. 8Verify code is marked as used after purchase