For PayPal refunds: https://experienceleague.adobe.com/en/docs/commerce-admin/stores-sales/order-management/credit-memos/credit-memo-create
Look for Offline Credit Memo method in the doc if you want to process the refund in PayPal Dashboard first. That way you don't refund the order twice.
For Stripe refunds: https://docs.stripe.com/connectors/adobe-commerce/payments/admin
NOTE: If the payment method is not PayPal or Stripe (Credit Card) and is Check or Wire, you can just click on Cancel instead of creating a Credit Memo as long as the Invoice has been created.
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