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This is off until an admin switches it on: your initials → Shopify → cancel and refund. When it’s on:
  • admins can cancel and refund,
  • team members can too, only if an admin switches on 💸 Refunds for them in Team.

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Cancel an order

In the Orders panel, open the order → Cancel order. You can choose to refund the payment at the same time. The inbox asks you to confirm first.

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Refund

Open the order → Refund, then choose:
  • the whole order,
  • some items (pick which, and how many), or
  • a custom amount.
You can also refund shipping, and put the items back in stock. The inbox shows the most you can refund.

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Where the money goes

Refunds go back through the way the customer paid. For online payments, the money is really sent back to the customer by your payment provider. For cash on delivery or manual payments, Shopify records the refund but no money moves: send it back yourself, and the inbox reminds you of this.
Every cancel and refund asks first, is checked with Shopify before it happens, and leaves a note in the chat saying who did what.