No sitefinity backend doesnt support automatic refunding on canceling orders and etc.
All order statuses like Cancel Return and etc doesn't communicate with third party payment services because we cannot know what refund the merchant desires. Maybe you will not refund the full price and etc.
So the only way to refund is: to login to Authorize.NET backend and based on the order number for example to refund the whole transaction or part of it.
Then you need to Cancel the order in Sitefinity so the product inventory will be increased and etc.
Also keep in mind in sitefinity we have 2 statuses.
Canceled and Returned.
Canceled can be order that has been placed. If it was Paid (this means the inventory was decreased) we will increase it back again. If it was never Paid we will simply close the order.
Returned is for orders that have been already shipped to the client. We do not increase inventory automatically for such orders because the package has been opened and the product probably cannot be sold again as a "new" one so for Returned orders based on the conditions of the product the merchant should manually upgrade his inventory details of all products in the order.
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