1. Open the Payment Wizard
Payment wizard details are located here.
2. Select the Invoice(s) that payment will be unapplied and refunded from and decide whether or not to cancel the invoice.
If there is only one invoice you still must select it. If you do not cancel the invoice the balance will remain on the customer's record. If the refund is due to the customer canceling the order then it makes sense to cancel the invoice here.
3. Select how the refund will be issued.
A check refund will create a refund record linked to the payment record. You will have to run a workflow to deactivate this refund as processed once the check has been sent out.
A cash refund will create a refund record linked to the payment record. You will have to run a workflow to deactivate this refund as processed once the cash has been given to the customer.
Refund directly to Credit Card will send the request through your payment processor. The refund record will still be created and linked to the payment but will deactivate automatically if the refund processes successfully.
4. Confirm Information and Submit
The confirmation page will show you the current values and what the update will change. If everything is correct click the submit button. If it is not you can click Back to make changes or Close to cancel.