Stork Credit
Store credit vs gift cards, discount codes and points.
Store credit sits in the customer's Shopify account and shows up at checkout with no code. Discount codes come off today's margin, gift cards need a code, and points need a calculator. Here's how the four compare on Shopify, and why credit is the one that brings people back.
Side by side.
| Store credit | Discount codes | Gift cards | Loyalty points | |
|---|---|---|---|---|
| Needs a code | No. It's a balance on the customer account | Yes | Yes, the gift card code | Often. Many apps turn points into a discount code |
| Works with Shopify Markets | Yes, held per currency. Issue it in the currency the customer shops in | Yes. Fixed amounts convert at checkout | Yes. Store-currency cards convert at checkout | Depends on the app |
| Shows at checkout | Yes, as "Apply store credit" for signed-in customers | Only if the customer types it in | Only if the customer types it in | Depends on the app |
| Protects margin | Yes. Costs nothing until it's spent, and it's spent on a future order | No. Comes straight off this order | Sold cards are prepaid. Free ones cost you when redeemed, like credit | Partly. Costs land when points are redeemed |
| Customer has to remember it | Only that it's there. A reminder email handles that | Yes, the code | Yes, the code or the email it came in | Yes, the balance and how to redeem it |
Sources: Shopify Help Center on store credit and discounts and gift cards in Markets. Store credit needs Shopify's new customer accounts.
Why credit converts.
Discounts erode. A 20% code gives away 20% of the order in front of you. Run it often enough and customers stop buying at full price, and the code ends up on a coupon site.
Points expire. "You have 1,340 points" means nothing until the customer does the maths. Most never do, so the reward never does its job.
Credit converts. $20 of store credit is $20, in the customer's own account, waiting at checkout. It costs you nothing until it's spent, and it can only be spent by coming back. That's the second order you were trying to buy with the discount.
Want to see it in numbers? Model your own store in the store credit ROI calculator, then set up automatic cashback to pay rewards as credit.
Discounts still win when
- You're buying a first order from a new customer
- You need a sitewide sale for the season
- The customer can't hold credit, like a true guest with no customer record
Store credit wins when
- You want a second order, not a bigger first one
- You're rewarding loyalty, reviews or referrals
- You're refunding, and would rather keep the revenue
Store credit questions.
Is store credit the same as a gift card on Shopify?
No. A gift card has a code, and it's usually bought. Store credit is a balance on the customer's own account. It shows at checkout as "Apply store credit", with nothing to type.
Does store credit work with Shopify Markets?
Yes, but it's held per currency. At checkout, customers see the balance that matches the currency they're paying in, so issue credit in the currency each customer shops in. Stork's CSV import, Shopify Flow action and webhooks all let you set the currency.
Is store credit better than a discount code?
For repeat purchases, usually. A discount costs margin on the order it's used on. Store credit costs nothing until it's redeemed, and it's redeemed on a later order. For winning a first order, a discount can still be the better tool.
Can customers use store credit in Shopify POS and Shop Pay?
Yes. Shopify lists Point of Sale as a channel where store credit can be used, and customers can use it at checkout when signed in through customer accounts or using Shop Pay.
Does Shopify store credit need new customer accounts?
Yes. Shopify says store credit isn't available for legacy customer accounts. Customers see their balance in their account details and at checkout.
Discounts erode. Credit converts.
Free to install. Native to Shopify. No points, no codes, no dev work.