How to Set Up Refund to Store Credit

Store credit is a refund method that issues a WooCommerce coupon to the customer instead of a cash refund — keeping revenue in the store while still resolving the return. When a customer chooses this option at request time, the coupon is generated automatically once the return is approved.

WooCommerce → Returns Center → Settings → Return Settings → Refund method preferences

Coupon Generation Process

Customer submits a return request and selects “Refund to Store Credit” as the refund method.
Admin approves the return request — this triggers the store credit refund.
Coupon generated: A WooCommerce coupon equal to the refund amount is created automatically.
Email notification: The coupon code and refund amount are emailed to the customer.
Customer redeems: The customer applies the coupon code on their next purchase.

Store credit email sent to customer showing the generated coupon code and refund amount — *Example store credit email sent to the customer*

Next Steps

Setup & Configuration – Configure available refund methods and other return settings.
How to Use the Returns & Exchanges Center – Approve or reject return requests and manage the full returns workflow.
Email Notifications – Customise the store credit email template sent to customers.