Articles on: Refunds and exchanges

How Does Pre-discount Credit Work

Plans: Premium, Enterprise Platforms: Shopify


Merchants can now enable the pre-discount credit feature with AfterShip Returns. It gives shoppers the credit according to the original value of an item, instead of the discounted value they paid. It means they have a little extra to spend when doing an exchange. This help guide will explain how pre-discount credit works.

Taxes are not included in the pre-discount credit.

📢 What you’ll learn

In this article, we will show you:

Steps to enable pre-discount credit
Pre-discount credit and extra credit
How pre-discount credit works

Steps to enable pre-discount credit

Go to the Refunds and exchanges under Return policy in the AfterShip Returns admin
Move to the Exchange for other items section and choose the Exchange flow for which you want to enable Pre-discount credit
Click Edit and scroll down to Bonus credit

Shift the toggle to the right to enable Pre-discount credit

What will happen if I enable both pre-discount credit and extra credit?

Pre-discount credit will be prioritised and then extra credit will be applied if you have enabled it.

You can check the applied credits on your AfterShip Returns dashboard.

Go to Returns and select a Exchange for other items RMA
Move to the Paid section. For credits for exchange, you will see Show credits option. Click on it to reveal

Pre-discount credit
Extra credit (Percentage or Fixed amount, based on what you've configured)

How pre-discount credit works?

Let’s suppose a shopper got a 20% discount on a product worth $100. It means he paid $80 to purchase that particular product. However, for some reason, he wants to exchange it with any other product. Now, if you’ve enabled the pre-discount credit feature, these 3 cases are likely to happen.

Case 1: Shopper wants to exchange with a cheaper product

Your shopper will get a $100 pre-discount credit. But if he/she wants to get a $60 item in exchange, you’ll only have to refund $20 as an amount or store credit since he/she originally paid $80 to you.

Case 2: Shopper wants to exchange with a bit of expensive product

If the shopper wants to get a $90 item in exchange, he doesn’t have to pay anything to you, since he/she has the pre-discount credit of $100.

The remaining $10 pre-discount credit can’t be used next time. Also, the pre-discount credit only applies to the order value, which means it can't be used to adjust the cost of return.

Case 3: Shopper selects a premium product for an exchange

If the shopper wants to get a $120 item in exchange, he has to pay $20 to you, as the pre-discount credit is only $100.

Besides the extra $20, the shopper may have to pay tax and the cost of the return if applicable.

For any questions, contact our chat support team.

Updated on: 24/08/2023

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