Is a return refunded to the original payment method?
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Yes, for cash, gift card and store credit: each part goes back to its own payment method. The gift card that paid is reloaded, the credit is given back to the customer of the sale, and the part paid in cash is refunded in cash. A sale paid, even in part, by payment card cannot yet be refunded at any register: tell a manager before promising a refund.
Full guide : Returning items and refunding.