Magento 2 Store Credit Payment Method: Setup And Extensions

• What is the Magento 2 Store Credit Payment Method?

• What Are the Features Of Magento 2 Store Credit?

• What is the Difference Between Store Credit and Refund?

• When to Use Store Credit vs. Refund?

• Why Do Stores Need Extensions for Magento 2 Store Credit and Refunds?

• What Are The Best Magento Extensions For Store Credit And Refunds?

• How To Set Up Store Credit Magento 2 Payment Method?

• FAQs

• Summary

What is the Magento 2 Store Credit Payment Method?

Magento 2 Store Credit Payment Method lets stores offer credits to customers. Instead of cash refunds, customers get virtual credits in their customer accounts. They can use this available credit for follow-up orders at checkout.

This feature offers flexibility and supports credit transaction tracking. It also speeds up refunds with credit memos from the Magento system.

What Are the Features Of Magento 2 Store Credit?

1. Credit Management for Store Admins

Magento 2’s Credit Management lets admins control online store credit. Admins can add or adjust credits as needed. This feature helps with issuing refunds or promotional credits. Admins can also see credit transaction histories to track adjustments.

2. Integrated Credit Memos for Easy Refunds

The credit memo feature lets stores issue credits instead of refunds. Customers receive credit in their accounts and use them later. This feature saves on transaction fees and encourages more shopping. Credit memos from the Magento system simplify and speed up the refund process.

3. Available Credit Balance in Customer Account

Each customer can see their available credit balance in their account. This balance updates store credit. They know how much credit they have to use before an order.

4. Simple Checkout Redemption for Customers

With the store credit redemption feature, customers can use their credit at checkout. Magento 2 makes this process simple by adding credit as a payment option. This smooth experience encourages customers to use their credits and shop again.

5. Automatic Store Credit Update Notifications

Magento 2 sends store credit update emails when a balance changes. This feature keeps customers informed if they have used added or used credits. Automatic updates build trust. It informs customers about their credits and encourages them to return and spend.

What is the Difference Between Store Credit and Refund?

Feature	Store Credit	Refund
Definition	Store credit is virtual money added to the customer’s account.	A refund is a money returned to the customer’s original payment method.
Purpose	Keeps funds within the store, encouraging further buying.	Returns the amount to the customer, ending the transaction.
Customer Usage	Customers use credits on the following orders.	Customers receive funds and may or may not return to buy again.
Impact on Customer Loyalty	Builds loyalty by incentivizing future shopping.	Neutral, as the refund completes the order without further incentives.
Transaction Fees	It incurs no extra transaction fees.	Refunds may incur processing fees depending on the payment method.
Flexibility for Admins	Admins can adjust credit balances and add promotional credits.	Less flexible. Refunds tie to the original transaction.
Visibility in Customer Account	Appears as a balance customers can view and apply at checkout.	Refunds appear in customers’ bank or card statements.
Return on Investment (ROI)	Higher ROI as it drives repeat business.	Lower ROI as it doesn’t ensure return shopping.
Setup Complexity	Requires store credit setup or store credit extensions in Magento.	Refunds are standard and simpler to execute.
Best Used For	Retaining customers and reducing refund costs.	Satisfying customer requests for money back.

When to Use Store Credit vs. Refund?

Store Credit

Store credit works well for stores wanting to keep funds in the business and promote loyalty. Customers who accept store credit are more likely to return for more purchases.

Refund

A refund is ideal when customers request their money back. It is also an option if the customer does not have an interest in recurring purchases. While a refund order may incur transaction fees, it resolves the transaction immediately. It provides immediate customer satisfaction without further engagement.

Both methods have their place. Store credit is ideal for businesses to keep customers and reduce refund costs.

Why Do Stores Need Extensions for Magento 2 Store Credit and Refunds?

Magento 2 Enterprise Edition includes built-in Store Credit functionality. But, this feature is not available in Magento 2 Open-Source. Open-source stores need third-party store credit extensions to add similar features.

Store credit extension lets stores issue credits for refunds. They also help manage credit balances in customer accounts. It offers flexible refunds and tracks customer credit histories. It enhances customer satisfaction and adds value to the store.

What Are The Best Magento Extensions For Store Credit And Refunds?

1. Mageplaza Store Credit for Magento 2 - PWA, GraphQL, API

Mageplaza store Credit extension allows stores to manage credit balances. Customers can use these credits to pay for future purchases. Stores can also issue refunds as store credit. It encourages customer loyalty and boosts repeat sales.

Features

• Compatible with API and GraphQL for smooth integration.

• Supports Magento 2.4.7 for up-to-date functionality.

• Easy to add store credit and also subtract it from customer accounts.

• Enables discounted purchases using store credit.

• Sends automatic notifications for credit balance updates.

• Allows refunds to process as store credit.

• Store credits to motivate repeat purchases.

• Works well with Mageplaza’s Gift Card and One Step Checkout extensions.

Pricing Starts at $149 + 60-day money back + 365-day support + Options for extra support.

2. Magedelight Store Credit, Refunds, and Cashback Promotions for Magento 2

Magedelight Store Credit extension allows admins to manage customer credits and run promotions. The Magento 2 refund extension allows admins to add and adjust store credit balances. It also lets them set up promotions that reward customers with store credits.

Features

• Compatible with API and GraphQL.

• Supports Magento 2.4.7 for the latest functionality.

• Simplifies credit balance adjustments in customer accounts.

• Allows discounted purchases using store credit.

• Sends automated balance update notifications.

• Processes refunds to store credit.

• Encourages purchases through credit incentives.

• Integrates with Mageplaza’s Gift Card and One Step Checkout extensions.

Pricing

• $149. No auto-debit setup, lifetime access to the source code. It also includes + 1 year of free technical support, compatibility, and feature updates.

3. Magecomp Magento 2 Store Credit & Refund Extension

Magecomp Magento 2 Store Credit & Refund Extension lets owners offer virtual credits. Customers can use these credits to buy products and settle payments later. This extension provides flexible options for managing and assigning store credits.

Features

• Assign store credits to customers for use at checkout.

• Set credit usage limits.

• Enable credits for specific countries as needed.

• Customers can request store credits from the front end.

• Manage and assign credits in the Magento 2 backend grid.

• Supports REST API, GraphQL API, and Hyvä Addon.

• Magento 2.2.X- 2.4.7 compatible

Pricing

• $59/-

4. Milople Magento 2 Store Credit & Refunds

Milople Magento 2 Store Credit helps stores offer refunds as store credits. This feature boosts customer lifetime value, encourages repeat purchases, and strengthens customer loyalty.

Features

• Convert returns into revenue by refunding as store credits.

• Provide store credits based on past purchases or customer groups.

• Manage store credits from the backend.

Pricing

• Magento Community Edition (Single License): $65.00 + professional installation $49.00

• Magento Enterprise Edition: $215.00 + professional installation for 1 domain.

How To Set Up Store Credit Magento 2 Payment Method?

Setting up Magento 2 Store Credit involves 7 steps.

Step 1: Enable Store Credit in the Admin Panel

1. Log into the Magento Admin Panel.

2. Go to Stores > Configuration > Customers > Customer Configuration.

3. Select Store Credit Options from the menu.

4. Set Enable Store Credit to Yes.

5. Configure the Store Credit Updates section:

   • Email Notification: Choose if customers should get an email for store credit.

   • Store Credit for Redemption: Define the credit balance needed for redemption.

6. Save the configuration.

Step 2: Add Store Credit to a Customer Account

Magento 2 allows store admins to manage store credit for individual customer accounts. Follow these steps to add or adjust store credit:

1. Go to Customers > All Customers in the Admin Panel.

2. Select a customer account to open the Customer Information page.

3. In the left menu, choose Store Credit.

4. In the Add/Subtract Credit field, enter the amount to adjust the store credit balance.

5. Choose Update Balance to confirm changes.

6. Save the customer’s profile to apply for credit.

Step 3: Configure Store Credit as a Payment Method

Magento 2 lets you set store credit as an option at checkout. Follow these steps to enable it:

1. Go to Stores > Configuration > Sales > Payment Methods.

2. Under Other Payment Methods, find Store Credit and set it to Enabled.

3. Configure the Order Total to use store credit if needed.

4. Save the settings.

Step 4: Configure Credit Memo for Refunds to Store Credit

You can process refunds as store credit instead of cash. Follow these steps:

1. In the Admin Panel, go to Sales > Orders.

2. Open the order needing a refund.

3. Select Credit Memo.

4. On the Credit Memo page, choose Refund to Store Credit in the options.

5. Complete the credit memo to add the refund to the customer’s store credit.

Step 5: Using Store Credit in the Cart and Checkout

When a customer has store credit, they can apply it at checkout:

1. After adding items to the cart, the customer proceeds to checkout.

2. The option will appear in Apply Store Credit if they enable the store credit.

3. Customers can adjust how much credit they can apply to their order.

4. The credit amount reduces the order total.

Step 6: Customizing Store Credit Emails and Notifications

Magento 2 can notify customers of store credit changes. Here’s how to customize these emails:

1. Go to Stores > Configuration > Customer Configuration.

2. Under Store Credit Options, enable Send Store Credit Update Email.

3. Pick the template you want to use.

4. Customize the email content in Marketing > Communications > Email Templates.

Step 7: Managing Store Credit Transactions and History

Magento records all store credit transactions, allowing for easy tracking:

1. Go to Reports > Customer > Store Credit.

2. View transaction history, including credit additions, redemptions, and refunds.

3. Download reports as needed for record-keeping.

Please note:

• The native Store Credit functionality is available in Magento 2 Commerce (Enterprise Edition). But it is unavailable in Open Source (Community Edition). Implementing store credit requires third-party extensions for Open Source users.

• Customers can choose how much of their credit to apply. If they have enough credit, they can cover the total order value or use a part of it. Customers can also combine their credit with other payment methods if necessary.

  Magento calculates the remaining balance after applying for store credit. It displays the final amount for any extra payment. This flexibility benefits customers by letting them control their store credit amount usage.

• After customers use their customer store credit, Magento 2 sends an automatic email. This notification confirms the store credit amount spent and the remaining balance.

FAQs

1. Can customers at checkout redeem store credits?

Yes, on the checkout page, customers can redeem their store credits. They can apply the store credit balance to their order. It will reduce the total cost. This option appears for customers with available store credit.

2. How can a store admin manage customer store credits?

Store admins can manage store credits through the store credit tab in the backend. They can add, subtract, or adjust credits in each customer account. It allows flexibility in credit handling. Admins can also track credit transactions to maintain accuracy.

3. Can you use store credits as the main refund option?

Store admins can process refunds as store credits with a Magento 2 refund extension. It keeps funds within the store. It also helps promote continued shopping trips and simplifies the refund process.

5. How can I install the store credit module?

To install the store credit module, follow Magento’s extension installation process. Configure it to fit your store’s credit policies after installation. This module is simple to set up and use.

6. Can you use store credits for specific products?

Yes, you can use store credits to buy specific products. Customers can apply their store credit balance to these items at checkout.

Summary

The Magento 2 Store Credit Payment Method provides a flexible alternative. It enhances loyalty, lowers processing costs, and simplifies customer transactions. The extensions help:

• Keep customers

• Lower refund costs

• Simplify the refund process.

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