Managing credit notes and billing credits

On this page, you can learn more about how to manage credit notes and billing credits through your Shopify admin.

Caution

Shopify isn't obligated to issue refunds. All credit and refund decisions are made at Shopify's discretion and are reserved for specific situations. This article provides clarity on common scenarios where credits might apply, however you shouldn't expect refunds or credits. Refer to the Shopify Terms of Service and Shopify's refund policy for subscription plans for more information.

Managing credit notes for billing adjustments

A credit note is used to cancel out either part or all of a bill that's been issued to you. It serves two main purposes:

• Unpaid bills: If your bill remains unpaid, then the amount specified in the credit note will automatically reduce your total amount due.
• Paid bills: If you've already paid your bill, then a credit note can trigger a refund for the amount specified, effectively returning those funds to you.

Note

If you deactivate your store, then any credits on your account will remain available for 60 days. During this period, you can choose to reopen your store and use your credits. After 60 days, any unused credits will expire and be removed from your account.

Access and download a credit note

1. From your Shopify admin, go to Settings > Billing.

2. In the Past bills section, select the bill that has a corresponding credit note.

3. In the Your account was credited [amount] on [date] section, click Download credit note. The credit note is downloaded to your device in PDF format.

Understanding account balances and billing credits

Each billing account on Shopify maintains a balance. This balance behaves as follows:

• Positive balances: Any positive balance on your account is used to decrease the amount due on future invoices, continuing until the balance is zero.
• Credit notes and invoices: When a credit note is issued because Shopify owes you money, it adjusts the payment process for upcoming invoices. This can either reduce the amount that you have to pay next time or cover the entire invoice.

Eligibility criteria for billing credits

Shopify doesn't issue refunds to merchants, including requests for refunds or credits for unused services, misspelled domains, or cases where merchants are ineligible for credits. For details on Shopify's refund policy, refer to Section 5.10 of the Shopify Terms of Service.

Refunds as account credits

If you choose a refund in the form of account credits, then these credits are automatically deducted from the balance due on your next bill.

For example, if your account receives a $40 USD credit for the billing cycle from January 1, 2025, to January 30, 2025, then this credit will be applied to reduce the bill for the next cycle, which covers January 31, 2025, to March 1, 2025.

Types and usage of billing credits

Billing account credits are categorized as follows and applied accordingly:

• Subscription credit: Applied as a discount to your subscription charges.
• App credit: Applied as a discount to your app charges.
• Shipping credit: Applied as a discount to your shipping charges.
• Transaction credit: Applied as a discount to your transaction fees.

How billing credits are applied

Credits on your Shopify account are designated for specific billing categories and will be automatically applied to your next invoice within the same category they were assigned. It's important to note the following restrictions:

• Category-specific: Credits earned in one category (such as subscription or shipping) can't be transferred or used to offset charges in another category.
• Future billing only: Credits can only be used for future billing cycles and aren't applicable to any current or outstanding charges on your account, including subscription and transaction fees.

Review your available billing credits

1. From your Shopify admin, go to Settings > Billing.

2. If you have available credit in any credit category, then in the Current billing cycle section, click View remaining credits.

3. In the Credits in your account dialog, view credits that you have available in any credit category.

Prorated credits during Shopify plan upgrades

When you upgrade your Shopify plan mid-cycle, any unused subscription time is converted into prorated credits. These credits are then automatically applied to your upgraded plan's invoice.

How prorated credits are calculated

If you upgrade your plan during a billing cycle, then the unused days of your current plan are calculated and converted into a credit. This is done by dividing the monthly plan cost by the number of days in the month and multiplying it by the number of unused days.

Note

These calculations provide an estimated value. The actual prorated amount applied on your invoice can vary slightly based on the exact time of your plan upgrade.

Example of prorated credit calculation

Suppose your Shopify store's subscription plan costs $39 USD per month, and you received a monthly invoice on May 1st. If you decide to upgrade to a higher plan on May 11th, then you have not used 19 days of your original subscription. Here's how the prorated credit would be calculated and applied:

1. Calculate the daily rate: Daily rate = $39 USD/30 days = $1.30 USD per day
2. Calculate the prorated credit: $1.30 USD per day x 19 unused days = $24.70 USD

Example of applying the prorated credit towards a new monthly Shopify plan

Here's how the prorated credit would be applied to adjust your invoice for upgrade:

• New plan cost: $105 USD
• Less prorated amount: $24.70 USD
• Final invoice amount: $105 USD - $24.70 USD = $80.30 USD

Therefore, your invoice would be $80.30 USD.

Example of applying the prorated credit towards a new yearly Shopify plan

Here's how the prorated credit would be applied to adjust your invoice for upgrade:

• Annual fee cost: $348 USD
• Less prorated amount: $24.70 USD
• Final invoice amount: $348 USD - $24.70 USD = $323.30 USD

Therefore, your invoice would be $323.30 USD.

Understanding transaction fee policies

When you cancel an order on Shopify, the transaction fee associated with that cancellation won't be refunded to your account nor credited back.

Transaction fees are separate from Shopify Payments fees, which are taken directly from your payout. Learn more about fees and costs.