The refund window explains it in its blue note: refunding to Digital Wallet credits the customer's balance in your Sprwt store - it costs you nothing and the money stays in your bank account (the customer spends it on a future order). Refunding via Stripe returns the money to the customer's card; Stripe and the card networks keep the original processing fees, so you are responsible for those fees, and the customer sees the money in 5-7 business days.

If the order was paid partly with wallet balance and partly by card, a yellow note tells you that a full Stripe refund will send the card portion back to the card and the balance portion back to the customer's wallet. If you previously refunded part of the order to the wallet and now refund to the card, use Amount to remove from user balance to take that credit back so the customer is not refunded twice.