Store credit is an amount that is restored to a customer account. Customers can use their store credit to pay for purchases, and administrators can use store credit for 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 is paid 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 used for future purchases. In some cases, a refund can be given at the same time that a credit memo is issued, and applied to the customer’s balance of store credit. The amount of store credit that is available in the customer’s account is specified in the configuration.