Depending on the payment method you might need to mark a payment as refunded as a-posed to refunding the payment. When processing a refund for a credit card payment, it will send the funds back to the credit card. When marking a payment as refunded, it will simply balance out the order and not send the funds back to the credit card.
To refund a payment directly from the transaction, first, click on all payments from the left side of the transaction. A window will appear showing all payments made on this particular transaction. Here you will be able to enter a full or partial amount to be refunded, click Refund, enter optional notes and click confirm to finalize the refund.
When refunding a payment that was collected as cash or a check, you will need to give the cash or write a check to the client. However, when refunding credit card payments, the amount entered will be sent back to the card used for the payment.
There are some cases where a payment was made by a credit card, however, you do not want to send a refund back to the credit card. For example,
The payment was done too long ago and the payment processor does not allow a direct refund
The payment was already refunded directly from your payment gateway account, Stripe, Square, etc…
The payment was disrupted and the bank reversed the charge
In such cases, you will need to mark the payment as refunded but not send the funds back to the credit card. To do so:
Navigate to the Account -> Payments section from the main menu
Find the payment in question through the search bar using the order number, client name, payment amount, or any other information
Click on the view button
From the payment view page click the “Mark as Refunder” button
Enter the full or partial refund amount and confirm
This will mark the payment as refunded, and balance the order payment amount without sending the funds back to the client.
Check the order to make sure the amount due reflects the refund made.