Loyalty rewards are supposed to keep customers coming back. For subscription brands that is a strange job, because subscribers are already coming back on a schedule. The question isn't "how do I get a second order?" but "how do I make staying feel better than leaving?" Store credit and points answer it in different ways, and they don't reach the subscription order in the same way either.
This guide explains how each works, where subscribers can actually spend them, what they cost you, how to use them to save cancellations, and how to choose based on how often your customers buy.
How store credit works
Store credit is a money balance on the customer's account. $10 of credit is worth $10 off a future purchase. You give it as a refund (instead of money back to the card), as a goodwill gesture when something goes wrong, or as a reward.
On Shopify, store credit is a native balance on the customer. Signed-in customers apply it as a payment method at checkout, with no code to copy. Each credit can have its own expiry date, and the credit that expires first is used first (Shopify Help Center, checked October 18, 2026).
The important limit for subscriptions: Shopify store credit can pay for the first order of a subscription at checkout, but it can't pay automatic renewals. Shopify says customers "can use store credit towards the initial purchase of a subscription, but not towards recurring subscription bills" (same source, checked October 18, 2026). So a subscriber with $20 of credit still pays their renewal with their card; the credit waits for their next checkout.
How points work
Points are a loyalty currency. Customers earn them for actions you choose (each dollar spent, subscribing, a birthday, a review, a set number of orders) and trade them for rewards: an amount off, a percentage off, free shipping. A program usually sets an earn rate (points per dollar) and a redemption rate (points per dollar of reward). See loyalty points and earn rate.
Points are usually redeemed as a discount code at checkout. Like store credit, they don't pay a renewal on their own. They make sense when you want to reward behavior (subscribing, staying, reviewing) and when the reward itself is part of the fun: watching the balance grow, reaching the next tier.
Side by side
| Store credit | Points | |
|---|---|---|
| What it is | A money balance | A loyalty currency traded for rewards |
| How customers see it | A dollar amount at checkout and on their account | A points balance in the loyalty program or launcher |
| How it is spent | Applied at checkout, no code | Redeemed for a discount code or reward |
| On automatic renewals | No (Shopify rule) | Not by itself |
| Best for | Refunds, apologies, a clear value | Rewarding behavior and building a habit |
| Cost to you | Every dollar issued is a dollar of future revenue given away | Depends on how many points are redeemed and the reward value |
| Expiry | Set per credit, or none | Usually after a set time without activity, by program rule |
Visibility: a reward nobody sees does nothing
Both kinds of reward only work if subscribers know they have them. A subscriber who has never opened your loyalty page doesn't feel the pull of 1,200 points. Put the balance where they already look:
- In the customer portal, next to their next order.
- In the reminder before each renewal ("you have $12 of credit to use on your next add-on").
- In failed payment messages, so updating the card feels worth it.
- In the cancellation flow, before they confirm.
- In a win-back message after they leave.
Liability and expiry
Unspent credit and points are a promise of future discounts. Accountants call this a liability, and it should be tracked. See points liability.
- Store credit is easy to count: The balance is the liability. Every $1 issued could become $1 less revenue.
- Points are harder: Multiply outstanding points by the value of a point, then adjust for how many you expect to be redeemed. Track what share actually gets used.
- Expiry keeps it in check: An expiry date limits how long a balance hangs over you, but expiring rewards customers worked for feels bad. Give long windows, warn before anything expires, and never let a reward expire quietly.
- Check local rules: Some places restrict expiry on money-like balances. This isn't legal advice; check before you set expiry dates on credit.
Using rewards to save a cancellation
Rewards are strongest at the moment someone is about to leave:
- Show what they would lose: "You have 900 points, enough for a free bag" or "you're two orders from your next reward" before they confirm the cancel.
- Offer credit instead of a refund: For a damaged or disliked box, credit toward an add-on keeps the value in your store. Add a small bonus to make credit worth more than cash back.
- Reward the reason they stay: If they stay after a pause or a frequency change, a few bonus points tell them it was the right call.
Keep it honest: the rewards should be a reason to stay, never a reason they can't leave. Our guide to cancellation flow examples has more.
Rewarding the subscription itself
Because neither credit nor points pay a renewal by themselves, the most direct way to reward subscribers on the subscription order is to change the order: a free product added at order six, a discount added to the subscription after a year, a gift at a milestone. These rewards land in the box automatically, where the subscriber sees them. Use credit and points for what they do well: add-ons, one-time orders and the store as a whole. See our guide to subscription workflow examples.
Setting the value of a reward
Whatever you choose, decide what a reward is worth in dollars before you launch, so you know what the program costs. A worked example with made-up numbers:
- You give 1 point per $1 spent, and 500 points can be traded for $5 off. Each point is worth one cent, so the program gives back 1% of spend once redeemed.
- A bonus of 200 points for subscribing costs you $2 if it is ever redeemed.
- If you would rather give $5 of store credit for subscribing, that is $5 of future revenue given away, with no question about whether it will be redeemed.
- If only some points are ever redeemed, the real cost of points is lower than the face value. Track the redemption share for a few months before you change rates.
Then compare it with what the subscriber is worth to you. If a subscriber who stays an extra two orders brings in far more margin than the reward costs, the reward pays for itself. See customer lifetime value and loyalty burn rate.
Choosing by how often customers buy
| Your customers | What tends to fit |
|---|---|
| Subscribe and rarely shop otherwise | Milestone gifts and discounts on the subscription order; store credit for service moments |
| Subscribe and also buy add-ons or one-time items | Points or credit they spend on those extra purchases |
| Buy one-time often, subscribe sometimes | Points with a bonus for subscribing, to turn regulars into subscribers |
| High-value, low-frequency orders | Store credit, which feels concrete when orders are far apart |
How Chargezen handles both
Chargezen runs store credit, points and subscription rewards from one platform:
- Native Shopify store credit: Store credit lets your team refund an order as credit with an optional bonus, add goodwill credit, set expiry dates and choose whether Shopify emails the customer, all from the Shopify admin. Customers spend it at checkout with no code. As above, it can't pay automatic renewals.
- Points and tiers: Earn points for orders, subscribing, birthdays, reviews and repeat orders; redeem them for an amount off, a percentage off or free shipping; set when points and reward codes expire.
- Subscription rewards: Subscription rewards add credits, free gifts, order milestones and punch cards that show progress in the portal.
- Rewards on the subscription order: Workflows can add a free product or a discount to a subscription after a set number of paid orders.
- Shown where it counts: Failed payment reminders can show a subscriber's unused credits, and rewards sit in the launcher next to their subscription.
Store credit and subscription rewards are part of Chargezen Subscriptions, $199 a month or $1,990 a year for Shopify Advanced and Shopify Plus stores, with no commission. See pricing.
Frequently asked questions
Can subscribers use store credit on renewals?
Not with Shopify store credit. Shopify lets customers use it on the first order of a subscription at checkout, but not on automatic renewals (Shopify Help Center, checked October 18, 2026). They can use it on add-ons and one-time orders.
Are points or store credit better for retention?
It depends on how your customers buy. Points reward behavior and build a habit; credit is simpler and feels like money. For subscribers who rarely shop outside their subscription, rewards added to the subscription order itself often work best.
Should loyalty points expire?
An expiry keeps your liability in check, but give a long window and warn customers before anything expires.
Is store credit the same as a gift card?
No. Shopify store credit is a balance on the customer's account, applied at checkout without a code. A gift card is a code anyone holding it can use.
