Refunded orders (2024 Update)

How BON processes refunded orders (2024 Update)

BON Loyalty was designed to incentivize repeat purchases and reward loyal customers for their continuing purchases. However, in the case of a refund required, you can find out how BON policy is applied to manage refunded orders

IMPORTANT NOTE: The refund logic is only available for line-item refunds only. Manually entered refund amount will NOT be counted and points will NOT be deducted from the total points earned. Any bonus points awarded through VIP tier benefits (if applicable) will also be adjusted accordingly.

Introduction

This updated refund policy applies to all points earned through “Complete an order” rules, including both points awarded in increments and fixed amounts. It covers all current refund types, including:

Order cancellations (Cancel)
Partial refunds (Partially refund)
Full refunds (Fully refund)

Overview

Refund Process

With orders receiving a fixed amount of points
With orders receiving incremental amounts of points
With discounts applied to the refunded orders

Refund Process

1. With orders receiving a fixed amount of points

When applying this type of reward, customers receive a fixed amount of reward points, regardless of their order value. If a partial refund is requested, BON will calculate the proportion of the refunded items relative to the original order. This proportion is then applied to the total points earned to determine the number of points to be deducted from the customer’s balance.

With a full refund request, all points collected from completing that order will be deducted. Any bonus points awarded through VIP tier benefits (if applicable) will also be adjusted accordingly. Lastly, if any redeemed discounts have been applied to the refunded orders, the added back points will be adjusted accordingly as well.

The point deducted amount will be recorded in the customer’s point history.

Example: If you set up the rule that your customers will earn 100 points for every order. Dane placed an order with 2 items, item A which is worth $250, and item B which is worth $150. The total order value was $400 and Dane earned 100 points.

Dane then requests a refund for item A, then, the amount of deducted points will be calculated as: ($250/$400) * 100 points = 62.5 points, rounding up to 63 points.

So with the refund above, BON will deduct 63 points from the total amount of points earned from Dane’s order.

2. With orders receiving incremental amounts of points

The incremental amount of points is a way of setting reward points based on the value of an order. With BON Loyalty, store owners can also select which products are eligible for earning points, and which products will be excluded from earning points.

For orders with product-specific conditions, the refund process will be handled as follows:

BON will review the items in the order and detect whether the refunded product is included in the list of products eligible for earning points upon purchase.
If the refunded product is included in the eligible list, BON will apply a points deduction formula: (Refunded product value / Total order value) * Total earned points
If the refunded product is NOT on the list of products/collections eligible for earning points, the earned points from the order will remain unaffected.

3. With discounts applied to the refund orders

Impact of order cancellation on discounts: When an order is canceled, its associated discount may change. If the cancellation occurs before fulfillment, the discount is marked ‘Used’ by Shopify and will no longer be available for future use. However, if the order has been partially fulfilled, the discount might still apply to the items that were not canceled, depending on the terms of the discount.

BON’s role in discount handling: It’s important to note that BON does not manage how discounts are processed based on order status. Shopify’s system determines the application and handling of discounts. As a third-party app, BON’s role is limited to triggering Shopify to generate discount codes based on the discount settings configured in BON. This is particularly relevant for discounts with the “limit to one customer” condition, which tracks a customer’s email address or phone number to ensure the discount is used only once per customer.

Partial refunds: The discount amount will be calculated proportionally, and the corresponding number of redeemed points will be credited back to the customer’s account.

Full refunds: The discount value will be adjusted, and the full amount of redeemed points will be returned to the customer’s account.

Here’s an example of how BON handles the return of points for discounts applied to partially refunded orders (by line items):