You can refund all or part of a paid order to cash, store credit or the card the customer paid with.

Before you start, check that:

The order is paid. You can only refund up to the amount paid.
Your user has the Issue Refunds permission. Ask your store admin if you can't see Refund Order.

How to refund an order

Select the order number on the Orders page to open it, or find it with Search.
Select ⋯ (More order actions), then select Refund Order. You can also find Refund Order in the ⋯ menu next to the customer's name when you edit the order.
Enter the Refund amount, or select a percentage from 10% to 100%. The most you can refund shows under the box.
Choose the Refund method: Cash, Store Credit or Card.
Enter a Reason. This is required, and it helps if you need to check the refund later.
Select Refund.

Which refund method to choose

Cash: you give the customer cash from the drawer.
Store Credit: the amount is added to the customer's account to use on future orders.
Card: the amount goes back to the card the customer paid with.

Charged the wrong payment method by mistake? Undo the payment instead of refunding. See How to undo a payment.

Yes. Enter any amount up to the amount paid, or choose a percentage.

Go to More > Metrics > Financial and look at Refunded Orders, or export the Refunds report. See How to use Metrics to track your store.