“I need to issue refunds, or partial refunds, exchanges, etc...”

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Short Answer:

This must be done through your gateway’s terminal (virtual terminal). Please consult your gateway for further details.  You can use the order manager to update order status to keep track of such events.

Detailed Explanation:

Processing partial refunds through the manager is not available currently, but even if it were built into the manager, it would basically look and act like your gateway's terminal—so, not really a significant advantage here for many merchants.  Some people have thought it might be advantageous to display this information in the manager’s orders list; however, at the moment, we do not expect our shopping cart solution to completely replace your gateway or accounting system, as these should be the final and authoritative source for transaction information, not the shopping cart software.