Yes, after enabling Returns for your customers, you’ll have the option to choose at any point during the Return Order Shipment Journey, you would want to process the Refund.

Step 1: Go to the Refund Settings from the Settings menu available on the left menu.  

Step 2: Scroll down to the bottom and select when you would like to initiate the auto refund either Picked Up, Delivered, or Acknowledged Status from the dropdown.