How do app credits work? Need detailed explanation

[vai_jpn]

Can someone elaborate on app credits? How do they work?

[Mac]

Hi, @vai_jpn!
Thanks for reaching out in our Community Forums and for sharing your concern, I’d be happy to help.

Great question! App credits are issued in specific situations, such as when you downgrade a paid app subscription before the billing cycle ends. These credits will be reflected on your Shopify subscription bill and can be applied towards future application charges on the platform. To gain a better understanding of the process, you can find more information here.

If you're interested in learning about the backend process through the Partners dashboard, we have a document available that outlines how to issue these credits. You can access it here.

Feel free to reach out if you have any additional questions!

[vai_jpn]

So it won't incur cost to the merchant, right?

Once the app credits are used, the amount will be cut from the merchant's account. I hope I'm getting the right point.

[Mac]

Hi again, @vai_jpn!

Thanks for following up.

That's correct, the amount of app credits that you give to a merchant is withdrawn from your Partner account. Once the credits are approved, the merchant can view the sent amount in the Billing section of their Shopify admin.

Hope this helps!

[Arlettepinales]

Hello I recently got a high charge on an app and they have issued me the credits to bring my balance back to zero. However when I try to use it, it says not available. Will I not be able to open my store up again until I pay the $300 out of my own pocket? Will I even be returned the 300 as I have that in credits and not able to use?

[Victoria]

Hi there, @Arlettepinales.

Thanks for posting to the Shopify Community.

Credits are applied to your next bill in the associated category. For example, app credits can only be used to offset future app charges, not current ones. This means that if you have $300 in app credits, you cannot use them to cover existing charges that are due now. If you have been issued credits, they will be applied to your future bills, but you will not receive a refund for the amount you owe if you cannot use the credits to cover that charge. You can find more information in our Help Center resource.