Cashback Rewards for Loyalty (Shopify Integration)

Samantha Brown Updated by Samantha Brown

Overview

Cashback Rewards let you offer your customers a powerful, flexible incentive: store credit that can be redeemed directly through your Shopify store.

With Cashback Rewards, your loyalty members can earn a percentage or fixed dollar amount of their purchases back as store credit. This feature integrates seamlessly with Shopify’s Account Credit system, so customers can view and redeem their credit using Shopify’s built-in checkout experience.

💡 Available for Shopify Plus merchants only who are using New Customer Accounts

How to Enable Store Credit in Shopify

  1. Login to your Shopify admin
  2. Navigate to Settings > Customer Accounts
  3. Toggle Store Credit ON

How Cashback Rewards Work

When a customer completes an online purchase or uploads their receipt, they can earn cashback that’s automatically issued as Shopify store credit.

That credit appears in their account and can be redeemed the next time they shop — right through Shopify’s normal checkout flow.

Example

  • A customer spends $100 on your store.
  • Your loyalty program offers 10% cashback.
  • The customer earns $10 in store credit.
  • The $10 credit is automatically added to their Shopify account and can be used on their next purchase.

Reward Types

You can configure Cashback in two ways:

Reward Type

Description

Example

Fixed Amount

A set amount of store credit earned per qualifying event.

$10 cashback for every purchase

Percentage-Based

A percentage of the purchase subtotal (before tax and shipping).

10% cashback on each order

🧮 Note: Percentage-based cashback is always calculated on the pre-tax, pre-shipping subtotal and rounded down to the nearest cent ($0.01).

Setting Up Cashback Rewards in Friendbuy

  1. Login to your Friendbuy account
  2. Navigate to Loyalty > Earning Events

  1. Click the blue Add Earning Event button
  1. Select the Make a Purchase earning event > Then click the blue Add Event button.
  1. In the reward configuration under the Reward With drop-down, select Cashback (Store Credit)
  2. Once that is selected, you have the option to customize the following criteria:
💰 Gift to Be Applied

This dropdown determines how cashback is calculated when a customer earns a reward:

  • Fixed Amount — Customers earn a set dollar value in store credit for completing the earning event.
    Example: Give $10 in store credit after each purchase.
  • Subtotal Percentage — Customers earn a percentage of their order subtotal as store credit.
    Example: Give 10% back on the order subtotal (pre-tax, pre-shipping).

💵 Enter Value

In the field next to the dropdown, enter the amount or percentage for your cashback reward.

  • If you selected Fixed Amount, enter a dollar value (e.g., 10).
  • If you selected Subtotal Percentage, enter a numeric percentage (e.g., 10 for 10%).

⏰ Expiration Settings

You can set an expiration period for the issued store credit.

Enter a number (e.g., 6) and choose a time unit (e.g., Month(s)).

This determines how long the cashback store credit remains valid after being earned

ℹ️ Note

The note at the bottom explains how cashback delivery works:

Store credit will be automatically issued to the customer when they complete a purchase. The credit can be redeemed at checkout on future orders.

This means:

  • You don’t need to manually issue credits — Friendbuy does this automatically through Shopify’s Account Credit API.

  1. Once Shopify store credit has been configured, you will need to enable a Reward Delay as s security measure, so customers are not able to make a large purchase, cancel it, and keep their store credit.
  2. There is also a setting that is toggled ON by default where Friendbuy will validate purchases with Shopify to account for any order cancellations or returns.
  3. Once your criteria set, click the blue "Save Changes" button to enable store credit functionality.

Customer Experience

Earning Cashback

Customers earn cashback after completing a qualifying purchase. Once their order is validated, the store credit is added to their Shopify customer account after a specified Reward Delay to acount for returns or cancellations.

Redeeming Cashback

Customers can:

  1. Log into your store using Shopify’s New Customer Accounts.
  2. View their store credit balance in their account
  3. Redeem available credit directly at checkout — Shopify automatically applies it through the native redemption UI.

Notifications

Friendbuy will send the standard loyalty reward email that will include the credit amount earned by the customer. Ensure you have a Loyalty Reward Email Configured in your account.

Limitations

  • Available only for Shopify Plus stores.
  • Requires Shopify’s New Customer Accounts — cashback is not compatible with classic accounts.
  • Cashback applies only to purchase-based earning events, including Receipt Scanning events
  • Refunds and adjustments are handled by Shopify, not Friendbuy.
  • Cashback is issued as Shopify store credit only (not cash payouts or external gift cards).

How did we do?

How to Create an Earning Event

How to Configure an Earning Event in your Loyalty Program

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