How do app credits work? Need detailed explanation

Shopify Discussion

Topic summary

What are app credits?
App credits are issued when merchants downgrade paid app subscriptions before a billing cycle ends. These credits appear on Shopify subscription bills and can offset future app charges on the platform.

Cost structure:

  • Credits do not cost the merchant initially
  • The credit amount is withdrawn from the app developer’s Partner account
  • Merchants can view approved credits in their Billing section

Important limitations:

  • Credits apply only to future app charges, not existing/current bills
  • Cannot be used to cover charges that are due immediately
  • No refunds are issued for amounts owed if credits cannot cover current charges
  • Example: $300 in app credits cannot pay off a $300 balance due now, but will offset future app bills

Open questions:

  • Validity period of app credits (unanswered)
  • Whether credits apply to all app charges or specific ones (unanswered)

Additional resources are available in Shopify’s Help Center and developer documentation for both merchants and Partners.

Summarized with AI on October 27. AI used: claude-sonnet-4-5-20250929.
1

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

2

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!

3

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.

4

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That’s correct, the amount of app credits that you give to a merchant is withdrawn from your Partner account.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!

5

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?

6

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.

7

Hello, how long is the validity period of the app credit? Can it be applied to all app charges?