Definition of Woocommerce Refunds System :
Woocommerce Refunds System is a Woocommerce extension that adds the functionality of dispute resolution and refunds management to your store.
Yeah,I know the definition of the plugin seems quite simple but the plugin isn’t 
How The Refund Processing Actually Works
Disputes are initiated by buyers.
Disputes can only be initiated on refundable products that have successfully been purchased.In woocommerce terms,when order status is completed or processing.
Then the proceeding page :
Immediately the dispute has been initiated by the buyer,the following happens :
-the order status changes to “dispute” in the admin.
-buyer receives dispute initiation email
-admin receives dispute initiation email
At this stage admin can do 3 things :
1. Email buyer for further discussion.
2. Process the refunds via the payment gateway used or fall back to step 1. to request for method of payment the buyer would prefer.
After admin has refunded the payment,admin can then click on “Approve” dispute button on the order page. This automatically marks order as refunded,email notification is sent out
to both buyer and admin,amount refunded is deducted from the total sales.
3. Decline the refunds. If refunds is declined status of order is automatically changed to “Not Refunded”,buyer and admin receives notification email and the buyer can not initiate dispute for that same order again.
Superb Refund Settings Per product
-On product page in admin,you can configure the refund cost against the duration. A quick example of this is :
Product X costs $500. We can set the refund rule like :
$400 will be refunded if dispute is initiated by the buyer after 7days of purchase.
$300 will be refunded if dispute is initiated by the buyer after 14days of purchase.
$200 will be refunded if dispute is initiated by the buyer after 30days of purchase.
$150 will be refunded if dispute is initiated by the buyer after 45days of purchase.
$100 will be refunded if dispute is initiated by the buyer after 60days of purchase.
-Set terms and conditions of refunds per product
Three(3) new order statuses
Email Templates Settings
Emails are sent in HTML format with varieties of Tags to use :
buyer_first_name: Customer First Name
buyer_last_name: Customer Last Name
buyer_email: Customer Email
buyer_dashboard_link: Customer Dashboard Url
item_name: Item name
quantity: Item quantity
order_id: Order Id
dispute_message: Reason message
terms: Terms and Conditions
admin_name: Blog name
reason_for_decline: Declination reason
Still More Features
-Easily localizable.
-Compatible with latest Woocommerce version
-Top-notch Customer Support