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Let’s be clear: there’s no native "cashback" feature in Shopify. If you’re looking for a switch you can flip to give customers money back on their purchases, you won’t find it in the admin.
So why do you see so many "Shopify cashback apps" out there? Simple: merchants love the idea of cashback, and customers understand it instantly. But in Shopify, what those apps are really offering is either store credit or points. Both work as a form of cashback—the difference is whether the reward looks like money in an account or a currency to redeem later.
That’s not a bad thing. In fact, it’s the only way to make cashback happen in Shopify. The real question is which approach makes the most sense for your store—and how to set it up without adding unnecessary complexity.
This guide will walk you through exactly that.
What “cashback” really means in Shopify
When most people think of cashback, they picture credit card rewards or apps that send money back to the customer’s bank account. That isn’t how Shopify works.
On Shopify, cashback takes the form of:
- Store Credit
Customers earn a balance (e.g., $5 back on a $100 purchase) that lives in their account. They can use it like money on their next order. This is the closest equivalent to true cashback — we covered it in more detail in our guide to rewarding Shopify loyalty with store credit. - Loyalty Points
Customers earn points instead of direct credit (e.g., 100 points for a $100 purchase). Later, they redeem points for discounts, free products, or other perks. It’s still cashback in spirit, just with a layer of flexibility.
Why offer cashback at all?
Cashback works because it feels tangible. Customers see value building up in their account, and that pulls them back for another purchase.
Here’s why merchants like it:
- Repeat purchases feel natural → Spending a balance doesn’t feel like "buying again," it feels like using money you already own.
- Better than discounts → A $10 discount saves money once. A $10 store credit gets the customer to come back.
- You stay in control → You set the rules: fixed amounts, percentages, or points for certain actions.
Sound familiar? If you’ve ever worried about discounts cutting into margins or wondered how to get customers back without endless promotions, cashback is a smarter path.
And on Shopify, that path runs through store credit or points.
How to set up cashback in Shopify with Froonze
By now, it’s clear: cashback on Shopify isn’t about money going back to a customer’s card. It’s about giving them value they can reuse—either as store credit or points. The good news is that you don’t need a dozen tools to make this work. You can set it up directly in our Loyalty module.
Here’s how:
Step 1: Enable Loyalty
Head into the Froonze Loyalty & Wishlist app and subscribe to the Loyalty plugin. This unlocks both points and store credit options.
Step 2: Decide on your reward type
- Want it to feel like "real money"? Go with store credit.
- Prefer gamification and flexibility? Choose points.
Step 3: Add an earning rule
Examples:
- "Get $5 back in store credit for every $100 spent."
- "Earn 10 points for every $1 spent."
Step 4: Add a spending rule (for points only)
If you chose points, set up how customers can redeem them:
- Redeem points directly for discounts (e.g., 500 points = $5 off) through the widget.
- Or redeem points for store credit, which then works like money in the customer’s account.
That’s it. Once you save your rules, customers start earning cashback automatically on their orders.
Is cashback right for your store?
Before you roll out a cashback program, here’s a quick way to decide:
1. List your must-haves.
Do you need rewards that feel like real money (store credit), or do you want more flexibility and gamification (points)?
2. Check your margins.
Can you afford to give 3–5% back on every order and still stay profitable? If not, adjust the rate or make the rewards category-specific.
3. Test it on a dev store.
Set up one earn rule and one spend rule. Run through the flow as a customer. If it feels smooth for you, it’ll feel smooth for them.
👉 Here’s how to spin up a free Shopify development store if you haven’t already.
Bottom line
"Shopify cashback" really means rewarding your customers with value they can spend again in your store. And the best way to do that is with store credit or points.
With Froonze Loyalty and Wishlist, you can set up both in minutes, keep pricing transparent, and get support if you need help along the way.
Try it for yourself—set up one cashback rule today and see how your customers respond.
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