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 when Corso processes an exchange.

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

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, discounted with your Exchange Order Discount Code (or the Replacement Order Discount Code when Consolidate Exchange and Replacement Orders is on and the claim also has a replacement).
• 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 that the customer has already been made whole through the separate exchange order.

If your store uses Return Processing, exchange items are added to the original order instead, so no separate $0 order is created.

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 is that the customer was made whole through a separate $0 exchange order instead.

What you should do right now

Nothing 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. To see how each exchange is recorded across the original and exchange orders, see Understanding Exchange Money Flow.

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?

If you have questions or concerns, reach out to your Corso account contact and we will walk through it with you.