Magento 1.x Software Support Notice
For Magento Commerce 1, Magento is providing software support through June 2020. Depending on your Magento Commerce 1 version, software support may include both quality fixes and security patches. Please review our Magento Software Lifecycle Policy to see how your version of Magento Commerce 1 is supported.
Store Credit & Refunds
Store credit is an amount to be restored to a customer account. Store credit can be used by customers to pay for purchases, and by administrators as cash refunds. Gift card balances can be credited to the customer’s account, instead of using the gift card code for future purchases.
After an order has been paid for and invoiced, all of the order, or a portion of it, can be refunded by issuing a credit memo. A credit memo differs from a refund because the amount of the credit is restored to the customer’s account where it can be applied to future purchases, rather than returned to the customer as cash. In some cases, a refund can be given at the same time that a credit memo is issued, just as payment can be made at the time of invoicing. The amount of store credit in a customer’s account can be managed from Admin.