What are credit adjustments and how can you be using them?

~ 2 min read | January 3

Credits are a common occurrence while shopping, whether it is store credit for exchanging something with a lesser price or when you have less cash on you in a known store. Or it’s just a day of an offer where the store is offering you credit. Online businesses are no different.

Credits are used for a lot of different purposes. Businesses often resort to providing customers with credits for three apparent reasons:

  • Attract customers
  • Avoid Refunds
  • Retain customers

Attract Customers:
One of the ways in which credits can be used to attract customers are, the referral program:
Example: Let us assume, a credit of $100 is given to both the referrer as well as the referee when a customer refers a person and they sign up.

Avoid Refunds:
This one pretty straight forward, when a customer changes plans or when they exchange a product for another product with lesser price. then credits are sometimes used.

Retaining Customers:
Whether it is an error in transaction or a major downtime to make up for, an earnest mail explaining the situation and providing some credits to make up for the value lost could be a way to go.

With ChargeBee:
In ChargeBee there are two types of credits,
One is the automated credit that happens upon proration (when the option is selected).


Another is the manually added credits

Add credits

Whether it is to attract the customers or retain them from the POS stores to the online businesses, credits have definitely evolved to benefit the customers as well the businesses running them.

Credit adjustments, how are you making use of them? Don’t forget to leave a comment.

Get the scoop on what's new

Bhargavi P

Product Marketer at Chargebee. Coffee Addict, Music Explorer, Avid Reader, Poet.