How to Issue a Refund in WooCommerce

Learn how to easily process full or partial customer refunds directly from the WooCommerce order dashboard using Stripe or manual return methods.

June 22, 2026 By Adam McElwee

This guide explains how to issue a customer refund directly from the WooCommerce dashboard. By following these steps, you can quickly return funds to a customer for canceled or adjusted orders, ensuring accurate accounting and customer satisfaction.

This workflow is designed for store administrators and customer support representatives managing ecommerce transactions. You will use this process whenever a customer requests their money back, an order cannot be fulfilled, or a billing adjustment is required.

Navigating to the Order

Step #1: Click Orders in the WooCommerce sidebar menu. — Click **Orders** in the WooCommerce sidebar menu.

Step #2: Select the order you need to refund by clicking its order number or the customer's name. — Select the order you need to refund by clicking its order number or the customer's name.

Processing the Refund

Step #3: Scroll to the bottom of the line items section and click the Refund button. — Scroll to the bottom of the line items section and click the **Refund** button.

If you are refunding specific line items, simply increasing the item quantity in the new refund row will automatically calculate the corresponding item costs, taxes, and totals for you.

Step #4: Double check that auto populated amounts are correct. — Double check that auto populated amounts are correct.

Step #5: Enter the reason for the Refund in the text input field. — Enter the reason for the **Refund** in the text input field.

Selecting a Refund Method

Before finalizing, you must choose how to process the refund. WooCommerce typically offers two distinct methods depending on your payment gateway integration:

Refund Method	How it works	When to use
Refund via Gateway (e.g., Stripe)	Automatically communicates with your payment processor to send funds back to the customer's original payment method.	Standard refunds where the initial transaction occurred through your integrated gateway.
Refund Manually	Updates the WooCommerce order total to reflect the return internally, but does not move real money.	When you have already returned funds to the customer outside of WooCommerce (e.g., via cash, bank transfer, or directly from your processor's dashboard).

Step #6: Click Refund via Stripe (or the respective button for your active payment gateway) to process the transaction. — Click **Refund via Stripe** (or the respective button for your active payment gateway) to process the transaction.

Always double-check the refund amount before confirming. Once an automated gateway refund is initiated, it cannot be reversed.

Step #7: Click OK in the browser confirmation dialog to finalize the refund. — Click OK in the browser confirmation dialog to finalize the refund.

Please proceed to the following guide to complete the bookkeeping entry associated with the refund process.

How to Manually Push Refunds to QuickBooks Online

Processing the Refund

If you are refunding specific line items, simply increasing the item quantity in the new refund row will automatically calculate the corresponding item costs, taxes, and totals for you.

Selecting a Refund Method

Before finalizing, you must choose how to process the refund. WooCommerce typically offers two distinct methods depending on your payment gateway integration:

Refund Method

How it works

When to use

Refund via Gateway (e.g., Stripe)

Automatically communicates with your payment processor to send funds back to the customer's original payment method.

Standard refunds where the initial transaction occurred through your integrated gateway.

Refund Manually

Updates the WooCommerce order total to reflect the return internally, but does not move real money.

When you have already returned funds to the customer outside of WooCommerce (e.g., via cash, bank transfer, or directly from your processor's dashboard).

Always double-check the refund amount before confirming. Once an automated gateway refund is initiated, it cannot be reversed.

Please proceed to the following guide to complete the bookkeeping entry associated with the refund process.