Order Cancellation Now Supports Refunds to Store Credit
Shopify’s July 1, 2025 GraphQL Admin API update adds the ability to refund canceled orders as store credit not just the original payment method via the orderCancel mutation (2025-07 version) blog.richreturns.io+6Shopify+6Shopify Community+6
What’s New
With GraphQL Admin API 2025-07, the new refundMethod input allows you to issue refunds as store credit. The legacy refund input has been deprecated in favor of this more flexible approach Shopify+1Shopify Community+1
Why This Matters
1. Improved Cash Flow Management
Offering store credit keeps your money in-house while giving customers flexibility for future purchases.
2. Enhanced Customer Retention
Store credit encourages repeat purchases and faster decision cycles something full refunds don’t drive.
3. API Clarity and Control
Using the new refundMethod parameter simplifies code by enabling explicit control over refund types (payment method vs. store credit).
Best Practices
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Audit existing code: Replace
refundinput withrefundMethodeverywhere. -
Validate refund types: Ensure your logic distinguishes between store credit and original payment methods.
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Test thoroughly: Simulate cancellations with both full refunds and store credit paths.
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Communicate clearly: Notify customers visibly when issuing store-credit refunds they should see it in their accounts.
Final Word
Shopify’s new refund approach boosts flexibility and aligns with modern commerce needs. By offering store credit, merchants can improve loyalty and maintain revenue flow while backend APIs become cleaner and more intuitive.
If your store or app uses manual or automated cancellations, you’ll want to update your code now. For help auditing, implementing, or optimizing refund logic particularly around store credit flows our team at EcomSpiders is ready to assist. We offer free consultations to ensure your workflows are future-ready.
Visit EcomSpiders.com to schedule your call no pressure, just expertise.
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