What will happen when customers choose Refund to Discount Code as their resolution?

When shoppers create a return request with the option "Refund to discount code".
They can check the request status on the portal
You can find and check the request detail by going to the tab Management and filtering the requests by "Refund to discount code".
The resolution in the request would be "Refund to Discount Code"
If you approve the request, click on Approve > Refund/Refund on Shopify > Submit. To notify customers about discount code detail via email, please enable notifications of discount code.
After submitting, a discount code will be auto-generated on your Shopify admin with the value: Fixed amount (Fixed amount value is equal to the percentage of return value you set up in the Refund Resolution). For example, a customer returns 1 order worth $1000. The seller setup discount value is 10%. When the seller issues this discount, 1 discount code will be redeemed, and the discount is $100.