Store Credit Automation


Loop offers store credit as a way for our merchants to retain revenue while providing customers with optionality. Loop offers two ways to issue store credit to your customers:
  1. Recommended: Loop leverages Shopify's Gift Card API to create a gift card in the exact amount of the return. That gift card is automatically emailed to the customer at time of creation.
  2. The merchant creates a special gift card product for Loop. When a return for store credit is issued, Loop generates a new variant of that gift card, creates an order with an LGC- prefix for that gift card, which is then sent to the customer.
This guide will walk you through the necessary steps to set up either method, as well as how to test it.

Gift Card API Automation (Recommended)

This is the simplest way to begin issuing Store Credit to your customers.

To set this up, navigate to the Loop Admin, and go to Settings > General. Scroll to the Store Credit section, and select Use Shopify Gift card API for store credit. That's it!


Will I see LGC- orders in Shopify when processing returns? No. Using the Gift Card API is simpler because it doesn't require the creation of a new order - Loop can just issue the credit independent of an order.

Do I need to create a gift card product or enter a Product ID anywhere if I'm using the API? No. The Gift Card API enables Loop to issue store credit without needing to create an order with an actual product in it.

How do I know how much store credit was issued through Loop? Utilize the Store Credit report located under the Analytics tab in Loop admin. Sum the Total Gift Card amount for your specified period of time.

Gift Card Order Automation (Optional)

To use this store credit automation, you will create a Store Credit Gift Card in Shopify and connect it to Loop so that Loop can begin generating new orders for store credit gift cards.

To begin setup, you will need to create a Gift Card product that will be hidden from your store. This Gift Card will be used exclusively by Loop to provide your customers with Store Credit.

To create a Gift Card product:
  1. Log into your Shopify account, go to Products > Gift Cards.
    1. If gift cards have not previously been activated, click the Start selling gift cards on my store button.
  2. Click Gift card products
  3. Select Create gift card product in the upper right hand corner:
  4. Next, set a Gift Card Title
    1. Choose a name that is easily recognized so that your team knows this gift card product is tied to Loop.  
    2. Best Practice: Merchants commonly use the Title “Store Credit Gift Card” to differentiate the Store Credit Gift Card from other forms of Gift Cards.
  5. Scroll to Denominations, if any values are listed then delete each.
    1. Important: If Shopify requires that you keep a denomination, set to $.01
  6. In the top right, next to Product availability, select Manage, uncheck all active sales channels then click Done. Save this change.
  7. After saving, copy the Product ID which appears in the URL and complete the next set of steps:
To connect your newly created Gift Card to Loop:
  1. Navigate to the Loop Admin and go to Settings > General.
  2. Send an email to your Onboarding Manager or the support team with the subject “Gift Card”
  3. In the body of the email, confirm that you would like to activate Gift Card automation and include the new Gift Card Product ID that you copied from the URL
  4. Your Onboarding Manager or support team member will confirm via email when the set up is complete
    1. Note: Please allow 1-2 business days for Loop to activate your Store Credit Gift Card. 

If you are an existing Loop user and would like to activate Store Credit automation, please reach out to with the information above.

Testing Store Credit

Loop advises that all new Merchants test Store Credit automation after set up.To test your Store Credit Gift Card:

  1. Follow the instructions here to set up a test order.
  2. Go through the return process as the customer and request Store Credit:
  3. After submitting the return request, log in to your Loop admin, access the test you submitted and click Process Return

If the integration is working and you are using the Gift Card API:

  • The return will be archived.
  • In Shopify, the original order will have a note reading "Gift Card issued" along with the date, time, and amount.
  • In Shopify, under Products > Gift Cards, you should see a new gift card generated. It will look like this:

If the integration was a success and you are using the gift card order automation:

  • The return will be archived.
  • In Shopify, a new order will be created with a prefix that reads LGC- (Loop Gift Card) and the original order’s order number.


Can I set an expiration date for Store Credit Gift Cards?

Our Gift Card API Automation functionality will leverage your Shopify settings to set the expiration date. i.e., if you have Gift Cards set to expire in one year and the return processes on May 10, 2021, the Gift Card will expire on May 10, 2022.

Can I resend a Shopify gift card to my customer?

If the customer did not receive their Shopify gift card, follow these instructions:

In Shopify—

  1. Go to Products > Gift Cards 
  2. Search for the customer's email address
  3. Select the Gift Card
  4. Select Resend gift card to customer in the bottom right corner

Please reach out to with any additional questions.

What if I use for Store Credit Gift Cards?

Great news! We are integrated with and you can find more information here.