You can issue a refund either after the product is returned or, if you are allowing the buyer to keep the product (returnless refund), you can issue a refund immediately. If you authorize a return request or a buyer has requested a tax-only refund and you want to refund the order, you can choose from several options mentioned in this Refund options page.
If you want the product returned, we encourage you to wait until you receive it before issuing a refund, in order to evaluate its return condition. To foster positive customer experience, actively monitor the refund to ensure that it is issued to the customer in a timely manner. To set up your return instructions, visit the Returns Settings page.
For additional details, see: