How to Refund an Order in Magento 2?

Are you looking to refund an order in Magento 2?

Giving your customer an option to refund orders is traditional eCommerce practice. It improves the customer experience and increases the conversion rate.

Though, as a business person, you would not like to refund an order, but if it is a valid refund request, you must comply with it. An ethical seller goes a long way.

In this quick tutorial, I will show you how to refund an order in Magento 2.

What is the Credit Memo in Magento 2?

Credit Memo in Magento 2 is a document that settles the customer’s account by defining how much money should be refunded.

The customer either paid by offline method or online method. How you create a Credit Memo depends on the payment method used by the customer.

There are 2 types of Credit Memos: Online and Offline.

The refund will be saved in the Magento database in the offline credit memo, but the bank will not initiate any refund. You have to return the money manually.

In the online credit memo, payment will be transferred from the merchant’s account to the customer’s account. However, not every online payment method allows you to refund the payment via an online credit memo.

The method to initiate the refund order in Magento 2 is similar for both types of the credit memo.

How to refund an order in Magento 2?

Step 1: Navigate to Admin Panel > Sales > Orders. Here, you will find all the orders. Select the one you need to initiate the refund.

Step 2: Click ‘View’ to see all invoices. Select the invoice that you would like to refund.

Step 3: Press the ‘Credit Memo’ to create a refund.

Step 4: Tick the refund options: refunding individual items, refunding shipping, refunding amount, and refunding fee. Fill in the amount for each option you selected.

Step 5: Pres Refund Offline (or online, if you want to refund the payment to their bank)

Step 6: And done. The credit memo is created successfully.

Wrap Up

eCommerce stores with refund options seem to be more trustworthy due to the defensive notion of customers. Magento 2 makes it easier to refund the customer by creating a credit memo from the admin panel.

You should check whether the payment extension have an option to refund orders, if you are usine one.

If you encounter any obstacle at any step, please tell me in the comment box.

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