What is it?

WooCommerce refunds cover how Ingrid Returns calculates a refund amount and creates the refund in WooCommerce after returned items are confirmed at the warehouse.

The refund is created directly in WooCommerce through the REST API, so there's no manual refund entry in WooCommerce Admin. The payment gateway linked to the original order handles the actual reversal of funds to the customer.

Importantly, refunds are triggered by warehouse confirmation of the returned items — not by the customer submitting the return request.

How it works

The customer submits a return in the Ingrid Returns widget and selects the items to return.
A carrier label is generated, and the customer ships the items back.
The items arrive at the warehouse, where staff confirm receipt and record a quality decision for each one.
Ingrid Returns calculates the refund amount for each item approved for a refund.
Ingrid Returns creates a refund record on the original WooCommerce order through the REST API.
WooCommerce processes the reversal through the payment gateway on the original order.
The refund is recorded in Returns Back-office with its WooCommerce reference.

How the refund amount is calculated

The refund is worked out per returned item, in the customer's currency:

Item amount — the purchase price minus any discount that applied to that line.
Return shipping deduction — if you charge for return shipping in your price setup, it's deducted from the total.
Exchange cost deduction — if the return includes a paid exchange, the exchange cost is deducted.
Shipping refund — the original outbound shipping cost can be refunded in full or in part, depending on your price setup.

Refunds are calculated from the customer-currency prices on the order. If those price fields aren't populated correctly on an order line, the refund calculates as zero and no refund is created. Make sure order prices sync correctly during onboarding.

Configuration

Refunds use the same WooCommerce REST API credentials as the main integration — there's no separate setup.

Credentials:Returns Back-office → Settings → Admin → [Shop] → Edit ecom integration (store URL, Consumer Key, Consumer Secret).
Refund timing (exchange policy): set the default at Settings → Admin → [Shop] → Edit settings → Exchanges, or override it per price list under Settings → Price Setups.
Cost deductions: configure return shipping and handling fees per price setup under Settings → Price Setups.

After setup, run a test return through to warehouse confirmation and check that a refund appears on the test order in WooCommerce Admin with the expected amount.

Examples

Example 1: Standard return, full refund

A customer returns a £65 shirt in good condition, with no return shipping fee and no exchange. Once the item is confirmed at the warehouse, Ingrid Returns calculates £65 − £0 = £65 and creates a £65 refund in WooCommerce. The gateway reverses £65 to the customer's original payment method — with no manual steps for your team.

Example 2: Return with a shipping deduction

A customer returns two items totalling £70, and you charge a £5.99 return shipping fee. After both items are confirmed at the warehouse, Ingrid Returns calculates £70 − £5.99 = £64.01 and creates a £64.01 refund in WooCommerce. The deduction is visible in the refund breakdown in Returns Back-office.

Example 3: Return with a paid exchange

A customer returns a £90 jacket and exchanges it for a different color, with an £8 exchange cost and an "exchange on return" policy. Once the item is confirmed at the warehouse, the exchange order is created and Ingrid Returns calculates £90 − £8 = £82, creating an £82 refund in WooCommerce.

FAQ

When exactly is the refund created?
After the warehouse confirms receipt and quality for the returned items. The exchange policy affects when an exchange order is created, but the refund itself is always triggered by warehouse confirmation.

Can a refund be issued before items arrive at the warehouse?
No. Warehouse confirmation is always required first.

Does Ingrid Returns move the money?
Ingrid Returns creates the refund record in WooCommerce. The actual reversal is handled by the payment gateway on the original order. Not every gateway supports automatic reversal — check with your payment provider if funds don't reach the customer after the refund is created.

Can I refund only some items in a return?
Yes. Refunds are calculated per item based on the warehouse quality decision. Items not approved are simply excluded.

What if my store is unreachable when a refund is triggered?
Ingrid Returns retries automatically. If it still can't complete, the refund appears in Returns Back-office for manual review and re-processing.

Limitations

Limitation	Detail
Payment gateway dependency	Ingrid Returns creates the refund record; whether funds are automatically reversed depends on your payment gateway's capabilities.
Customer-currency prices required	If order lines lack customer-currency price data, the refund calculates as zero and no refund is created.
Warehouse confirmation required	Refunds can't be triggered manually before the warehouse step is complete.
Exchange policy scope	Refund timing follows the exchange policy, which can be set per shop or overridden per price list.