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Is store credit automatically given when returns are processed?

The short answer is no, credit is not automatically given.

Unfortunately our app does not link to payments, discounts, or rules. It is simple and manual. Once the store processes a return in Shopify. In order to give the customer store credit you will want to log into the FreshCredit app and add the credit to the customers account.

This feature is on our list of future enhancements. When this upgrade is made to the app we will send out mass communication.