There are huge benefits of giving refunds to your customers using store credits. You will get to keep the cash in the store and encourage customers to purchase more products from you at the same time.
Processing a store credit refund is fairly quick and easy. You just need to go to WooCommerce -➝ Orders ➝ find the order you want to refund and click it to view the order summary. Once it opens, click the “Refund” button under the list of the products.
After that, enter the amount that you want to refund as store credits and add refund notes if needed then hit the “Refund $XX to Store Credits” button.
The order status will automatically be changed to “Refunded” and you will see how much is refunded.
If you check this customer’s Store Credits history, you will see how many store credits this customer has received from the refunded order.