Refunded orders (2025 Update)

Points refund and deduction policy for Refunded orders (2025 update)

Understand how BON Loyalty processes points for refunded orders

Introduction

When an order’s value is changed due to a Return/Refund action, in addition to the buyer receiving a refund for the product, the store owner will also reclaim the loyalty points previously awarded for that order.

Overview

How order points are deducted based on the Complete an Order settings
How redeemed points are added back for refunded orders
Some example scenarios

How order points are deducted based on the Complete an Order settings

In BON’s settings for the Complete an Order action, merchants can customize conditions for the point-earning process, such as including or excluding specific products.

As a result, points for refunded orders are handled differently depending on whether the Include/Exclude conditions have been set:

1. If NO Include/Exclude conditions are set:

For fully refunded orders, all points earned from that order will be deducted.
For orders with multiple partial refunds (both by line items and custom refunds), points will be deducted for each partial refund, with the total point deduction reflecting all partial refunds combined.
Example, customer purchased:
- Product X – $40
  Product Y – $60
  Product Z – $20
  Refund of Product Y ($60) → 60 points deducted
  Later refund of Product Z ($20) → additional 20 points deducted

2. If Include/Exclude conditions are set:

For fully refunded orders, all points earned from that order will be deducted.
When refunding by line item, BON will deduct points proportionally based on the refund value of included products only.
For custom refund amounts (manually entered), points will be deducted proportionally based on the total refund value, regardless of product inclusion or exclusion.
For orders with multiple partial refunds, BON will deduct points only once, unlike the scenario with no Include/Exclude conditions, where total points are deducted for all partial refunds combined.
Example. customer purchased:
Product X – $40 (excluded from earning points)
Product Y – $60
Product Z – $20
If Product Y is refunded → 60 points are deducted (first refund).
If Product Z is later refunded → no additional points are deducted.

How redeemed points are added back for refunded orders

If a refunded order had a BON discount applied, the system will return the previously redeemed points to the customer in the following scenarios:

1. Full refunds: All points used to redeem a discount coupon for the order will be fully returned to the customer’s loyalty account.

2. Partial refunds: BON will calculate the ratio of Coupon value/Refund amount and return a proportional amount of points based on that ratio.

Some example scenarios

Complete an Order = 1 point per $1 spent.

Customer A purchased:

– Product X: $40
– Product Y: $60
– They redeem 100 points for a $10 discount coupon.
– The order earns 90 points.

Case 1: Refunding Product X ($40) by line item.

40 points earned from Product X will be deducted.
If the refunded product is excluded (based on Complete an Order settings), no points will be deducted.

The redeemed points (from the coupon) will be refunded proportionally:

BON deducts points using: Redeemed points used × (Refund amount/Total order value).
Refunded points = 100 × ($40 / $100) = 40 points.
Please note that Shopify automatically applies discounts proportionally across items.

Case 2: Refunding a custom amount (no line item product selected for refund).

In Shopify, a store owner can manually enter a refund amount without selecting products.
BON deducts points using: Points × (Refund amount/Total order value).
If the store owner enters a custom $20 refund amount, the deducted points are: 90 × ($20 / $100) = 18 points

IMPORTANT NOTES:
– Shopify automatically distributes applied discounts proportionally (e.g., if a $10 coupon is applied to a $100 order, each $40/$60 product gets $4/$6 deducted).
– If the orders are applied with conditions (include/exclude products and collections), BON can only process the first refund request with manual refund due to the differences in points ratio.
– VIP Tier statuses might be recalculated if points are deducted.