I'm currently looking around for a way to send money over to a customer, thus far the only way I've found is through refunds, but that doesn't seem like the most optimal way to do it. Is there a built in way to make such payments?
There is no other built in way to send money to customers. You need customer card/account details/PayPal account before you can pay to them. I guess the easiest option would be through PayPal by asking customers PayPal account.
So, whatever you do you need to some development for that.