Hi, @Aoli-Bangalore !
Which payment gateway are you using? Cancellation of an order will not result in an automatic refund. The steps you'll take to refund your customers depends on the gateway you are using. Some third party gateways will allow you to refund from the Shopify admin and others will not. If refunds in the admin are supported by your gateway, you can refund customers by following these steps. Some gateways will require that you process refunds directly in their dashboard instead.
Hope this helps!
That makes complete sense. RazorPay is a gateway that doesn't allow you to process refunds from within the Shopify admin. You'll need to process refunds from within your RazorPay dashboard instead.
Let me know if you have any further questions about this!