WooCommerce – How to Manage Refunds

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Refunds are a big part of order management when you are running an online business. Through seamless integration with different payment gateways, WooCommerce allows hassle-free refunds.

First of all, there are two ways to do your refunds – automatically with supported gateways, or manually. In this article, we’ll discuss both in detail.

Automatic Refunds

Automatic refunds allow you to process refunds without going to the dashboard of your payment gateway. While working with payment gateways that support automatic refunds, you have to add API credentials in the respective gateway’s settings. A noteworthy aspect of WooCommerce refunds is that you can refund product prices, shipping rates and tax.

Adding API credentials for payment gateway
Adding API credentials for payment gateway

Also note that adding the API credentials ensures an efficient, smooth automatic refund through your WooCommerce admin.

Processing the refund

Once this is setup, moving ahead to process the refund is a simple, straightforward step. First, go to WooCommerce → Orders, and find the order that you want to process. Next, go to the Order Details page, and click the Refund button. This will initiate the refund process.

Select the quantity of products that are to be refunded in the ‘Qty’ text box. In a multiple-items order, choose the required quantity of items for refund. WooCommerce calculates the refund amount automatically after you choose the quantity. In addition, if you want to add a note to the customer, you can do it at the ‘Add note’ field.

Finally, click Refund $Amount via (the relevant payment gateway) button to complete the process.

Processing automatic refund
Processing automatic refund

Once you complete the refund process, there will be a note in the order notes section informing the refund has been processed. If the entire order is refunded, the order status will automatically change to Refunded. In cases where only some of the items in the order are refunded, the order status won’t change.

Manual Refunds

Manual refunds are in a lot of ways similar to automatic refunds. The refund includes item rates, taxes and any applicable shipping charges. The difference is that there won’t be any automatic transfer of the refund to your payment gateway. After processing the refund, you’ll have to manually mark the order as Refunded.

Processing the manual refund

While you process a manual refund, go to WooCommerce → Orders, and find the order you wish to refund. Next, click the Refund button.

Initiating manual refund
Initiating manual refund

On the next screen, you can select the quantity of refund items, and manually enter the shipping charge or any other applicable charges. However, make sure the entire amount you wish to refund is reflected in the Refund amount field.

Processing manual refund
Processing manual refund

Click Refund $Amount manually button to complete the refund process. You can view the refund amount in the Item details section as in the below screenshot.

Completing manual refund
Completing manual refund

Now, as in the previous case, for a partial refund, you need to change the order status manually. After this, go to your payment gateway to initiate the refund process there also.