What is store credit?
Store credit is the balance of earnings a consignor has accumulated that they can spend in your store. When a consignor's items sell, their share of the proceeds builds up as an in-store balance — store credit — that works like currency at your register.
Why does store credit matter?
Store credit keeps money in your store. When a consignor's earnings live as a spendable balance, that money can stay in your store during a purchase instead of leaving as a payout.
For consignors, store credit can be a good deal too — many stores offer a store credit bonus when consignors use their account balance as the payment method at checkout.
How does store credit work?
A consignor's store credit balance grows as their items sell. At checkout, they can apply that balance toward a purchase — either in full or combined with another payment method.
How store credit is structured varies by store and software. In some setups, a consignor's entire earned balance is considered store credit. In others, store credit is a separate bucket — a consignor opts in to receive credit instead of cash, and the two are tracked independently. Either approach is valid; what matters is that your policy is clearly stated in your consignor agreement.
A few details worth thinking through:
Does store credit expire? Some stores set expiration dates on balances; others don't. If you expire credit, say so upfront.
Is credit transferable? Most stores keep it tied to the individual account.
Can store credit be split with other payment methods? Make sure your point of sale supports splitting payment types.
Store credit best practices
Make the value clear at intake. If your store offers a higher split or a bonus for store credit, tell consignors upfront. Consignors who understand the advantage are more likely to use it.
Have a clear policy on account balances and payouts. Do you only pay out when a consignor requests it, or do you proactively settle dormant balances after a certain period? Either approach works, but consignors should know what to expect.
Remember it's a liability. Store credit on the books represents a balance you owe.