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Is their any way to refund online to payment method within credit memo ?

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There are two types of refund:

  1. Online
  2. Offline

In the admin order view, you can see a button called "Credit Memo". Creating a credit memo from here will generate an offline credit memo. This means that if an online payment method was used (example: Paypal, Braintree, Authorize.net), the payment provider will not be contacted to issue the refund, it will happen offline.

An online credit memo (when the external payment provider is contacted to create a refund) can be created from the invoice. To create an online credit memo, go to order, click on the invoices tab, and then click the credit memo. The option of the online credit memo is only available if the payment method is online.

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