How to Refund an Order in Magento 1 & 2

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When doing business, there’s a “taboo” term that no store owner wants to hear. Yes, that’s right, it’s “refund”. But no matter how bad you wanna avoid it, sometimes things gone sour and the time comes when you have to issue a refund to your unhappy customer. And this guide is gonna make sure when that time comes, you’ll know what to do.

How to Refund an Order in Magento

Magento 1

Step 1:

In your Magento backend, go to Sales > Orders.
Navigate to the order that you wish to refund.

Step 2:

Click View to see the transaction details
Click Invoices to go to the Invoices Page and choose the Invoice that you would like to refund

Step 3:

Now you should be in the Invoice Details Page
Click on Credit Memo

Step 4:

Select your refund options: refunding individual items, refunding shipping, refunding amount and refunding fee.
Fill out the amount for the options you have selected

Click Refund Offline
Now the Credit Memo has been successfully created.

Note: Clicking “Refund Offline” and creating a credit memo does not actually refund the amount to the customer’s account. It just shows your intention to refund. You’ll then have to manually refund the order.
Some payment gateways, though, like PayPal, allows you to automatically refund the order. In this case, you’ll see the button “Refund” instead of “Refund Offline”.

Migrate to Magento 2

Magento 2

Step 1:

In your Magento 2 backend, go to Sales > Orders.
Navigate to the order that you wish to refund.

Step 2:

Click View to see the transaction details
Click Invoices to go to the Invoices Page and choose the Invoice that you would like to refund

Step 3:

Now you should be in the Invoice Details Page
Click on Credit Memo

Step 4:

Select your refund options: refunding individual items, refunding shipping, refunding amount and refunding fee.
Fill out the amount for the options you have selected