Online Refund: Automated through Magento’s payment gateway; faster and updates in real-time; preferred for immediate processing and better customer experience.
Offline Refund: Manual process outside Magento; slower and requires external handling; typically used when direct payment gateway integration is unavailable.
You can use our Magento 2 RMA Extension for efficient online refund.
Read this guide on How to Configure Return Merchandise Authorization (RMA) in Magento 2 Store to setup this extension.
Here are the few more resource to help you get most out of this Magento 2 RMA Extension.
How to Manage Customer Orders Returns in Magento 2
How to Setup Order Confirmation Email in Magento 2
Streamline Product Returns with RMA Magento 2 Extension
How to Manage Return Requests Effortlessly with Magento 2 RMA Extension