The Refund Method dropdown always has No refund, plus:

• Digital Wallet — offered when the order belongs to a registered customer and the wallet has not already received the full order amount.
• The order's original payment method — offered only if that method supports refunds in Sprwt (Stripe, Cash, Digital Wallet do; Authorize.net, Vantiv, Check and Stripe Terminal do not, though a Stripe Terminal payment is refunded through Stripe).

Choosing a card method shows the note about what portion goes back to the card versus the wallet when the order was partly paid with wallet balance.