If I issue refund for a physical gift card payment are the funds returned to the gift card?

[ACGord]

The title of this thread has been edited from the original: Physical gift cards for refund

When a customer pays with a physical gift card and wants a refund later on does the refund go back to the original payment card or can they get a refund on a physical gift card 

[VanKalkerFarms · Accepted solution]

if you issue a refund to the original transaction it will go back on their Credit card/cash back.  If you want to issue the item to a physical gift card you would have to issue the gift card manually (ring a gift card up for the value you want and then apply a 100% discount to it so it doesn't look like another sale).  the issue will be that the original transaction will still be for the full amount.