Issue a Refund as Store Credit Instead of Cash
How to process a refund as AskBiz store credit — keeping revenue in the business, giving the customer a hassle-free resolution, and tracking credit balances automatically.
Key Takeaways
- Store credit keeps the refund value inside your business rather than paying cash out the till.
- Credit is attached to the customer's profile and automatically deducted at their next purchase.
- Customers prefer store credit over waiting for a cash refund — offer it as the default option.
- All credit balances are visible in Operations > Customers so you can track outstanding store credit.
Why store credit is better than cash refunds for both parties
When a customer returns an item, the default instinct is to hand back cash. But store credit is better for everyone: the customer gets instant resolution without waiting for a card refund or bank transfer, and your business retains the revenue. The customer's credit is linked to their AskBiz account and deducts automatically at their next purchase — there's nothing for them to remember. For businesses with tight cash flows, store credit also smooths out the daily cash position.
Step 1 — Process the return at pos.askbiz.co
When a customer returns a product at the till, open a new sale and tap 'Return' or 'Refund'. Search for the original sale by transaction ID, date, or customer name. Select the items being returned. AskBiz shows the refund amount and asks for the refund method: Cash, M-Pesa reversal, or Store Credit. Select 'Store Credit'.
Step 2 — Attach the credit to the customer's account
If the customer is already in your AskBiz database (they have a loyalty account or have purchased before), the store credit attaches to their profile automatically. If they're a new customer, create a profile: tap 'New customer', enter their name and phone number. The credit is stored against this profile. Next time they visit, attaching their profile at checkout will show their available credit balance — the cashier simply applies it as a payment method.
Free — no card needed
See this in action for your business
AskBiz tracks these metrics automatically — just connect your data and start asking questions.
Start for free →Step 3 — Redeeming credit at the next purchase
When the customer returns to buy something, attach their profile at the start of the sale. At the payment screen, their store credit balance is shown as an available payment method. The cashier taps 'Use store credit' and the amount is deducted from the credit balance. If the purchase is larger than the credit balance, the remainder is paid by cash or M-Pesa. If the credit covers the full purchase, the sale completes without any cash changing hands.
Monitoring outstanding store credit balances
Go to Operations > Customers. Each customer profile shows their current store credit balance. Filter by 'Has credit' to see all customers with outstanding credit. This helps you understand your total store credit liability — the sum of all outstanding credits is an amount your business owes customers in future goods. Review this monthly: if total credit is growing, check whether customers are returning more than usual or whether some credits have never been redeemed.
Setting a credit expiry policy
Store credit that sits unused indefinitely becomes a liability on your books. Consider setting a credit expiry — for example, store credit must be used within 6 months. Inform customers of this policy at the point of issuing credit. AskBiz allows you to set credit validity periods in the Customer settings. Expired credit can be reviewed in Operations > Customers and cleared with a manual adjustment (logged in the Audit trail).