Credit memos are what Magento uses to refund transactions. You can issue both online and offline refunds from an open credit memo, depending on the customers payment method.
Click here if you are looking for how to do a validated return.This is our recommended way of handling the refund. If you're creating a validated return and you want the website to notify the customer, you can create an offline credit memo.


4. Click onViewto see the invoice.

5. On the top of the invoice, click Credit Memo.
6. Verify the information in the Items to refund section.
7. Update the Refund Totalssection as so:

8. To complete the process and issue the refund, click Refundfor an online Refund, and Refund Offlinefor an offline refund.
Warning:
The "Refund" option transfers the money back. If you used returns inCounterpointwith Securepay,DO NOTdo both.
If you useFAC,you will need to do bothfor Magento and Counterpoint to both have a record of the return
Offline Refunds:
Offline refunds do not change the transaction or refund the customer, but will mark the transaction as refunded on the website. If you have credit memo emails enabled, they will receive a notification for their refund from the credit memo.
If you do a return in Counterpoint, and want to update the Magento Order status you should choose offline refund.