Shopify Returns Processing Update
Shopify has made a platform-level change to how returns are processed through the API. This affects how exchange activity appears in Shopify for brands that are still using Corso’s current exchange flow.
What’s changing and why
Section titled “What’s changing and why”Corso previously used an interim Shopify solution that allowed return sales to be recorded at the time a return was created. That aligned well with the existing Corso exchange flow, where Corso creates a separate $0 exchange order to ship the replacement item immediately while leaving the original order funds in place.
As of March 1, 2026, Shopify has fully deprecated that interim solution. Returns created through the API now follow Shopify’s new behavior by default, and third-party apps can no longer override it.
This is not unique to Corso. It is a Shopify platform change that affects all third-party returns apps using the previous approach.
What you may see in Shopify Admin today
Section titled “What you may see in Shopify Admin today”If your store is still using the current Corso exchange flow, you may notice a Refund Owed banner on original orders where an exchange has been processed.
Here is why that appears:
- Corso creates a new $0 order for the exchange item.
- Corso closes the return on the original order.
- Shopify now sees the value of the returned item still sitting on the original order and flags it as an outstanding refund.
- Shopify does not understand, in this older flow, that the customer has already been made whole through the separate exchange order.
What this does not mean
Section titled “What this does not mean”- The customer has not been double-charged.
- You do not owe the customer a refund.
- The exchange order is not affected.
- The customer’s experience has not changed.
The Refund Owed banner is simply Shopify’s way of indicating that the customer did not receive a traditional refund on the original order. What Shopify does not understand in this flow is that the customer was made whole through a separate $0 exchange order instead.
What Corso is doing about it
Section titled “What Corso is doing about it”Corso is actively working on a Return Processing solution that brands will be able to opt into when they are ready. This will align Corso with Shopify’s new return processing standard and resolve the Refund Owed banner.
That solution will be available in Beta soon.
If you want to understand the new model and what it changes operationally, see Migrate To Return Processing.
What you should do right now
Section titled “What you should do right now”Nothing urgent is required on your end.
Your returns and exchanges are still processing correctly through Corso. The Refund Owed banner is a Shopify display issue related to the platform change, and no action is required from your team right now.
When the Beta is available, Corso will reach out with more detail and help assess whether your fulfillment setup is ready before any change is made.
What to tell your team
Section titled “What to tell your team”If your support or finance team asks about the banner, you can use this explanation:
This is a known display issue related to a Shopify platform change. Our exchange orders are processing correctly and no refund action is needed.
Need help?
Section titled “Need help?”If you have questions or concerns in the meantime, reach out to your Corso account contact and we will walk through it with you.