When I refund money to a customer does it send them an email to let them know? How can I set this up?
An automatic email is not sent to the customer when an order is refunded. However, you are able to describe the refund in the Comments field toward the bottom of the order detail page. Be sure to check the 'Display to Customer' box and use the Customer Emails tab at the bottom of the screen to send an Update Email, which will include your comments about the refund.