Processing Web Store Refunds
In Web Store itself you can process refunds in two ways:
Automatic Refunds change the Web Store order status and also reverse charges so your customer gets their money.
Manual Refunds change the Web Store order status, but you need to return the money manually to your customer.
These are called Automatic refunds because you process refunds that are connected to your payment gateway. Once you’ve processed this type of refund in your Web Store Admin, no further actions are necessary.
Check: Review the documentation or support of your payment gateway on whether automatic refunds are available. Most automatic payments fully support this.
Scope: Refunds normally extend to products, taxes, and shipping fees. However, transaction fees charged by the payment gateway will likely be lost and not refunded.
Setup: Make sure that your API settings are set and test your payment gateway and refunds while in sandbox or test mode.
Processing an Automatic Refund
Go to Orders in the top menu on the left, and select the order to refund.
Click on View Order Details to open the order screen.
Click the Refund button, which is located beneath the order invoice details.
A refund menu will appear.
If the quantities of items are not set when issuing a refund then the order is not marked as refunded and the email that is sent will say “partial refund.”
Add refund notes, if desired.
Select “Refund $XX.XX via [your gateway]”.
How to know if it worked
Order Notes in the right sidebar will log refunds. Keep an eye on the order notes to learn if it’s been logged or if there’s an error message. A successful “Refunded” message in order notes concludes the refund. Other areas showing refund are in the following image.
Processing a Manual Refund
Consult the documentation or support of your payment gateway on whether manual refunds are available.
After processing, the refund will appear in the customer order details, but the refund itself will not be processed automatically. You will either need to:
Log in to your payment method account and process the refund there.
Transfer the money from your bank account manually.
The process for a manual refund is identical to an automatic refund EXCEPT, you will choose the “Refund $XX.XX manually” button as shown in the image below.
The image below also shows an additional refund being added to the customer that was used in the first refund example. You can see the previous refunds. The system will not let you refund something twice.
Note: This does not refund the customer via the payment gateway. Continue on to your payment gateway’s dashboard to start the refund process there, or transfer the money manually back to them.
Inform your customers about your refund policy
The best starting point is to create a page describing your policy and how a customer can request a refund. The next step is to share it with customers. There are different options you might want to consider:
Option 1: adding the policy link into a menu in your Web Store
Option 2: adding the policy link into the customizable orders confirmation emails