Refunds
Refunding resolves a return. You choose where the money goes and how much, and Falcon closes the return in Shopify, restocks the items and emails the customer.
Refund a return
You can refund any return that's Approved. You don't have to mark it received first.
- Open the return.
- Click Refund in the Next step panel.
- In the Refund window, check the item lines and any fees.
- Choose Refund to. It starts on the option the customer picked.
- Check the Refund amount. It's filled in with the suggested amount.
- Leave Restock items ticked to put the items back in stock, or untick it. Green return returns don't have this box.
- Leave Send a notification to the customer ticked to email them, or untick it.
- Click Refund.
You'll see "Refund processed". The status changes to Resolved, and the Money card shows Refunded.
If you hadn't marked the return as received, Falcon records it as received now.
Refund automatically
An auto-refund workflow can refund matching returns as soon as you mark them received. See Auto-refund and auto-exchange.
Where the money can go
| Refund to | What the customer gets |
|---|---|
| Original payment method | Money back to the payment they used on the order. |
| Store credit | Shopify store credit on their customer account. |
| Gift card | A new Shopify gift card with its own code. |
| Discount code | A one-time discount code for their next order. |
You can choose a different option from the one the customer picked. For example, refund to Store credit when the customer asked for Original payment method.
Store credit, gift card and discount code refunds are available on every plan. Which options customers see on your return page is set in Solutions.
The refund amount
The Refund amount field starts with the suggested amount, shown below it as Suggested. This is the Expected refund from the Money card: the value of the returned items after any discounts and fees, including tax, plus any bonus.
You can change it to any amount of 0 or more. Use this to refund less for a damaged item, or to add goodwill. Refunding 0 still resolves the return, restocks if ticked, and closes it in Shopify. No money is sent, but a gift card or discount code is still issued for any bonus.
Check custom amounts carefully
Falcon doesn't stop you from refunding more than the suggested amount in this window. For original payment refunds, Shopify can't refund more than was paid on the order.
Fees deducted Starter plan and up
If you charge fees, the window lists them under the items, and they're already taken off the suggested amount:
- Restocking fee: a fixed amount or a percentage of the returned items' value.
- Return shipping fee: a fixed amount, taken from what's left after the restocking fee. It's never charged on Green return returns.
Fees never take the refund below zero. Set them up in Return policy.
Bonus credit Starter plan and up
You can reward customers who keep the money in your store. When a customer picks store credit, a gift card, a discount code, Replace or Exchange, Falcon adds a bonus on top. It shows on the Money card as Return bonus (or Exchange bonus) and is included in the Expected refund.
The bonus is a fixed amount or a percentage of the refund after fees. Customers who pick a refund to their original payment method don't get one.
When you refund to Store credit, Gift card or Discount code, Falcon adds the bonus on top of the Refund amount you enter when it issues the credit, gift card or code. The suggested amount already includes the bonus, so check the amount before you click Refund. Set it under Bonus for keeping the money in store in Return policy.
What Falcon creates in Shopify
When you click Refund, Falcon processes the Shopify return created at approval. This closes it in Shopify.
| Refund to | In Shopify |
|---|---|
| Original payment method | A refund on the order's captured payment. |
| Store credit | A store credit refund on the order. |
| Gift card | A new gift card for the refund amount plus any bonus. The code starts with FALCON and the gift card note mentions the return number. |
| Discount code | A new discount code starting with RETURN-, for the refund amount plus any bonus. It's a fixed amount off the whole order, can be used once, and once per customer. |
The gift card or discount code appears on the Money card, as Gift card: or Discount code: followed by the code.
Restocked items go back to inventory at the location of your default return address. If it has no Shopify location, Falcon uses your first active location. Set this up in Return addresses.
Shopify doesn't email the customer about the refund. Falcon sends its own email instead (see below).
Original payment needs a captured payment
Refunds to the original payment method need a successful, captured payment on the order. If there isn't one, you'll see "No captured payment on the order to refund". Choose another Refund to option instead.
Gift card safety and fallback
Falcon creates the gift card before it closes the Shopify return. If closing the return then fails, Falcon deactivates the new gift card, so nothing is half done. Try the refund again.
Falcon tries to link the gift card to the customer's account. If Shopify won't allow the link, Falcon issues the gift card without it. The customer still gets the code by email.
What the customer receives
With Send a notification to the customer ticked, Falcon sends the email that matches where the money went:
| Refund to | Default heading | |
|---|---|---|
| Original payment method | Refunded to original payment method | "Your refund is on its way" |
| Store credit | Refunded to store credit | "Your store credit is ready" |
| Gift card | Refunded to store gift card | "Your gift card is ready" |
| Discount code | Refunded to store discount | "Your discount code is ready" |
Gift card and discount code emails include the code. Edit these emails in Email notifications.
If a refund fails
If Shopify refuses the refund, the window stays open and an error explains why. The return stays Approved, so you can fix the issue and try again.