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Does anyone know if there is a way to issue store credit? Can we give someone $100 store credit and then they order $50 in product on one day and next month they order another $50 in product...

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Try the below:

http://www.j2t-design.net/index.php/j2t-points-rewards.html

It should do what you are describing that you require. Points based store credit reward system.

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