Shopify's GraphQL Admin API now supports issuing refunds as store credit when orders are cancelled, available as of API version 2025-07. The update introduces a new refundMethod input parameter that gives developers flexibility in how customer refunds are processed during order cancellations, replacing the previous refund input which is now deprecated.
For Shopify app developers and store operators, this change expands refund flexibility beyond the original payment methods. Store credit refunds can improve customer retention by keeping funds within the store ecosystem, while also reducing payment processor fees and simplifying refund workflows for certain use cases. However, apps using the older refund input will need to migrate to avoid compatibility issues as the deprecated parameter is phased out.
orderCancel mutation calls to use the new refundMethod input parameter instead of the deprecated refund inputrefund parameter and plan your migration accordinglyIf you're building Shopify apps that handle order cancellations and refunds, GetShopifyToken simplifies OAuth authentication and token management so you can focus on implementing these new refund features securely and efficiently.