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Best WooCommerce Refunds Plugins + How-to & Tips

Learn how to manage and process WooCommerce refunds, automatically or manually, and improve the shopping experience.
Last updated on May 4, 2023

overview Overview

Whether you like it or not, your WooCommerce store has to deal with refunds. WooCommerce has many plugins in this regard and helps you manage refunds and returns smoothly. It’s not possible that every customer likes your product, although that’s what we wish for. You need to be prepared for any scenario, and dealing with refunds is one of them. You can manage refunds using WooCommerce in two ways: manually or automatically with plugins.

This article will discuss both of these ways in detail and also mention some of the best plugins in this category. 

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military_tech Best WooCommerce Refund Plugins

1 WooCommerce Smart Refunder

The WooCommerce Smart Refunder makes managing refunds a breeze. Customers can easily request a refund from their “My Account” page and merchants can enable instant refund by integrating their payment gateway. For manual refunds, requests are displayed on WooCommerce. Moreover, customers can request full or partial refunds. With this plugin, the process is simple, automated, and fast.

2 YITH Advanced Refund System for WooCommerce

A solid refund policy is beneficial for your business and helps create a positive shopping experience for customers who were not fully satisfied with your product. With this plugin, you can easily create such a policy and manage it without any hassle. The smoother the return process is for customers, the more positive reviews you will get.

This plugin has tons of features, such as Customers can either refund the whole order or a single product. Moreover, you can also decide to refund the product completely or partially. You can also limit the days within which customers can request a refund.

3 Return Refund and Exchange for WooCommerce

You can easily manage refunds using this WooCommerce refund plugin. You can create a simple and powerful refund management system and notify your administration and customers through emails. Merchants can create refund email templates for each scenario, such as accepted, rejected, processed, to send to customers. Moreover, based on the refund policy, customers can ask for partial or complete refunds.

This plugin also simplifies managing tax on refunds, you can either include or exclude them by configuring the settings. It also has a premium version available.

4 WooCommerce RMA

WooCommerce RMA is an automated refund and exchange plugin that has an easy-to-use interface for managing and processing refund requests. Email notifications are sent to merchants and customers regarding any updates. Moreover, you can also customize the email templates with shortcodes.

Customers can request a complete and partial refund. The refund amount is automatically transferred to the customer’s account.

tips_and_updates Things You Should Know While Handling Refunds

There are a few things you need to know before managing refunds on your WooCommerce store. Either you are doing it manually or automatically.

I. Create a Refund Policy

The first thing you need to do is create a refund policy and clearly state the terms and conditions to your customers. This helps in creating a better customer experience and removes any wrong claims for later. It is recommended to dedicate a separate page to refund and return policy stating the process, how many days it will take, and other frequent queries.

II. Chosen Payment Gateway

It is also important to note that the payment gateway you choose supports the type of refunds you want to enable in your store. Thus, before making a decision, read the chosen payment gateway’s documentation. Moreover, you can also do a test run to see if it is working correctly. 

III. Managing Stock

Many payment gateways provide this feature automatically but if not, you need to set it up. Once an order has been refunded or returned, you can restock it in your shop. 

There is always room for improvement when it comes to refund and return policies. It also provides an opportunity to interact with your clients and find out what problem they faced with your product and choose to return it. 

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settings_suggest How to Process Refunds in WooCommerce

I. Automatic Refunds


Automatic refunds can be carried out using payment gateways that are compatible with WooCommerce and also support refunds. As stated above, few payment gateways support this and thus it’s necessary to check. To enable this feature, you need to add API credentials to your payment gateway. This allows you to manage refunds without logging into your payment gateway dashboard. 

We are going to be using the ELEX Authorize.Net Payment Gateway for WooCommerce for a step-by-step guide below. 

  1. First, you need to create an account on ELEX Authorize.Net.
  2. Then install and download the plugin on your WooCommere store and add in your account credentials. As a customer places an order, they will find the Authorize.Net section on the checkout page with card information fields. 
  3. If a refund is requested, go to the WooCommerce Orders page, choose the order that needs to be refunded, and then click on the “Refund” button below. 
  4. You have the option to either pay a full or partial refund. You can also enter the desired amount and then click on the payment gateway button below. 

The refund is transferred from the merchant’s account to the customer’s account directly using the payment gateway in automatic refunds. Once the refund process is completed, a note is displayed on the order notes section that the refund has been processed. Moreover, the status will automatically change if the entire order is refunded. 

Using this option would have a smooth and hassle-free refund process and save tons of time. 

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II. Manual Refunds


The major difference between manual and automatic refunds is that there will not be an automatic transfer of refund to your payment gateway and you would also have to change the order status manually.  

Follow the step-by-step guide to process refunds manually:

  1. For this, go to WooCommerce > Orders, and choose the order you want to refund.
  2. Click on the “refund” button below.
  3. In the next screen, you can select the number of refunded items and enter any applicable charges you want. You also need to enter the refund amount manually. 
  4. Click on the “Refund Amount Manually” button to complete the process.

And that’s it! In case of a partial refund, you need to change the order status manually. 

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fact_check Wrap-Up

Refunds are a crucial part of any business, whether we like it or not. To improve customer satisfaction and simplify the refund process as much as possible, use plugins to automate the process. We hope this article will help you make a well-informed decision. 

Editorial Team
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