What is Customer Credit?
Customer Credits provide a flexible way to manage customer balances and enhance billing relationships. With customer credits, you can:- Reward loyal customers with account credits for exceptional service or loyalty programs
- Issue service credits to compensate for service interruptions or billing adjustments
- Handle manual adjustments without disrupting existing billing cycles
- Provide refunds that customers can use for future purchases
Customer credits create a positive balance in a customer’s account that automatically applies to future subscription payments, reducing the amount charged to their payment method.
How Customer Credits Work
Customer credits operate on a simple principle: available credit is automatically applied to subscription payments before charging the customer’s payment method.Automatic Credit Application
When a subscription payment is due, Dodo Payments follows this payment sequence:1
Check Credit Balance
The system checks if the customer has available credit in their account.
2
Apply Available Credit
If credit is available, it’s automatically applied to reduce the payment amount.
3
Calculate Remaining Balance
Any remaining amount after credit application is charged to the customer’s payment method.
4
Process Payment
The final payment is processed for the remaining balance, if any.
Dodo Payments supports separate credit wallets for INR and USD. Credits added to an INR wallet can only be used for INR subscriptions, while USD wallet credits apply exclusively to USD subscriptions. You cannot use credits from one currency wallet to pay for subscriptions in another currency.
Payment Scenarios
Scenario: Customer has 60 USD credit, subscription costs 20 USDResult:
- $20 deducted from credit balance
- $0 charged to payment method
- Remaining credit: $40
No payment method charge required when credit fully covers the subscription cost.
Managing Customer Credits
Effectively manage customer credit balances through the Dodo Payments dashboard with comprehensive credit and debit operations.Adding Credits to Customer Accounts
Increase customer account balances by adding credits for various business scenarios:1
Navigate to Customer Details
Go to Customers in your dashboard and select the specific customer you want to manage.
2
Access Credit Ledger
Navigate to the Credit Ledger section on the customer detail page.
The Credit Ledger provides a complete transaction history and current balance overview for the customer.
3
Initiate Credit Application
Click Apply Credit to open the credit management interface.
4
Configure Credit Details
Set up the credit transaction with the following information:
Select Credit to add funds to the customer’s account balance.
Enter the credit amount to add to the customer’s account.
Choose the currency for the credit transaction:
- USD - US Dollars
- INR - Indian Rupees
Provide an optional explanation for the credit application, such as “Service compensation” or “Loyalty reward”.
5
Apply Credit
Review the credit details and click Apply to add the credit to the customer’s account.
The credit is immediately available for use on the customer’s next subscription payment.
Removing Credits (Debit Operations)
Remove funds from customer accounts when adjustments or corrections are needed:1
Access Credit Management
Follow the same navigation path: Customers → Customer Detail Page → Credit Ledger → Apply Credit.
2
Configure Debit Transaction
Set up the debit operation:
Select Debit to remove funds from the customer’s account balance.
Enter the amount to deduct from the customer’s credit balance.
Choose the appropriate currency (USD or INR).
Provide an explanation for the debit, such as “Billing correction” or “Credit adjustment”.
Ensure the customer has sufficient credit balance before applying a debit. Negative balances are not supported.
3
Apply Debit
Review and confirm the debit transaction to remove the specified amount from the customer’s account.
Understanding the Credit Ledger
The Credit Ledger provides comprehensive tracking and transparency for all customer credit transactions.Available Credit Balance
The customer’s available credit balance is prominently displayed at the top of the Credit Ledger interface, providing immediate visibility into their current credit status. Total Balance OverviewThe main balance display shows the combined credit amount across all supported currencies, converted to a single currency for easy reference. This unified view helps you quickly assess the customer’s total available credit without needing to calculate across multiple currencies.
The total balance is automatically calculated using current exchange rates to provide an accurate combined view of multi-currency credits.
- USD Balance: Shows the exact amount available in US Dollars
- INR Balance: Shows the exact amount available in Indian Rupees
- Additional Currencies: Any other currencies with available credit balances
The breakdown view is particularly useful when managing customers who make payments in multiple currencies or when you need to verify specific currency allocations.
Ledger Entry Components
Each transaction in the Credit Ledger contains the following information:Unique identifier for each credit transaction, ensuring complete auditability.
Payment ID when the transaction is linked to a specific payment or billing event.
The type of transaction that created this ledger entry:
- Payment - Credit used for subscription payment
- PaymentReversal - Payment reversal creating credit
- Refund - Refund processed as credit
- RefundReversal - Refund reversal removing credit
- Dispute - Dispute-related credit adjustment
- DisputeReversal - Dispute resolution adjustment
- MerchantAdjustment - Manual credit/debit by merchant
The transaction amount, showing positive values for credits and negative values for debits.
Customer’s credit balance before this transaction was processed.
Customer’s credit balance after this transaction was completed.
Optional explanation provided when the transaction was created.
When the transaction was processed, in ISO 8601 format.
Real-World Credit Scenarios
Understanding practical applications helps you leverage customer credits effectively for business growth and customer satisfaction.Scenario Examples
Service Credit for Downtime
Service Credit for Downtime
Situation: Your service experienced a 2-hour outage affecting a premium customer.Action: Apply a 25 USD service credit with reason “Compensation for service downtime on [date]”Result: Customer receives credit that automatically applies to their next USD 50 subscription, reducing their charge to $25.Business Impact: Maintains customer satisfaction and demonstrates commitment to service quality.
Loyalty Reward Program
Loyalty Reward Program
Situation: A customer has been subscribed for 12 consecutive months.Action: Apply a $10 loyalty credit with reason “Annual loyalty reward - Thank you for being with us!”Result: Customer receives unexpected value, strengthening retention and brand loyalty.Business Impact: Proactive customer appreciation that encourages continued subscription.
Current Limitations
The following features are planned for Phase 2 release and are not currently available: