store credit

{{Short description|Credit restricted to a specific merchant}}

{{Use mdy dates|date=September 2024}}

Store credit is a special currency that can only be used to make purchases from a specific retailer.{{cite web|last=|first=|title=STORE CREDIT - English meaning|website=dictionary.cambridge.org|publisher=Cambridge University Press|date=|url=https://dictionary.cambridge.org/dictionary/english/store-credit|access-date=2024-04-16}} It is often used by retailers when customers return a product in lieu of a cash or credit card refund, or when merchandise cannot be exchanged.{{Cite journal |last=Lu |first=Meng |last2=Zhang |first2=Zelin |last3=Lan |first3=Chunyu |date=2020 |title=Who Uses Store Credit? Factors That Influence Store Credit Usage Behavior: Evidence from jd.com |url=https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=145018339&lang=en-gb&site=eds-live&scope=site |journal=AMA Winter Academic Conference Proceedings |volume=31 |pages=MBD-4-MBD-5 |via=EBSCOhost}} The store credit amount is usually equal to the item's last sale price.{{cite web|last=|first=|title=STORE CREDIT definition and meaning|website=collinsdictionary.com|publisher=HarperCollins Publishers Limited|date=|url=https://www.collinsdictionary.com/dictionary/english/store-credit|access-date=2024-04-16}} In e-commerce, the store credit is accessed through the retailer's website.

In recent years, retailers have introduced buyback and trade-in programs in which store credit is issued to customers in exchange for used goods.{{Cite news |last=Renzulli |first=Kerri Anne |date=May 13, 2022 |title='Re-commerce' is Remaking Retail |url=https://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=156667880&lang=en-gb&site=eds-live&scope=site |access-date=2024-09-29 |work=Newsweek Global |pages=18–20 |via=EBSCOhost |volume=178 |issue=13}} In 2022, a group of Italian fashion retailers introduced a scheme in which customers could return used clothes to receive store credit to buy new clothing.{{Cite news |last=Carrera |first=Martino |date=January 27, 2022 |title=Lampoo Takes Secondhand Experience To the Storefronts: The Italian consignment marketplace has forged ties with Italian retailers to offer store credit in exchange for secondhand fashion |url=https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=154907230&lang=en-gb&site=eds-live&scope=site |access-date=2024-09-29 |work=Women's Wear Daily |pages=3 |via=EBSCOhost}} The expected benefit to retailers was increased customer loyalty and upselling, as customers were likely to spend more than the credit's value.