Hi, @SellingVeteran .
Thank you for posting! I hope your day is going well. As of March 2020 in the United States, and January 2021 for remaining countries, Shopify Payments no longer issues a refund of the processing fees incurred on the original charge. Our financial team emailed affected merchants when this change was implemented.
I understand this is frustrating, however, Shopify Payments incurs costs to process refunds. Because of this, we can no longer pay merchants back their original processing fee. That being said, unlike our competitors, we do not charge payment processing on the refund itself, only on the original charge. For your convenience, here is a link to Shopify Payments Terms of Service.
As I understand this impacts your business, I will be submitting this feedback on your behalf to our financial team to review.
In the meantime, if you can provide more context on what your most common reason for a refund is, I can provide some guidance on how you can decrease your refunds moving forward.