What is a recommended practice when processing refunds?

Documenting the original transaction before processing a refund is essential for maintaining accurate records and providing a clear audit trail. This practice not only helps in verifying the legitimacy of the refund request but also ensures that the refund is processed in accordance with store policies and financial regulations. By having a record of the original transaction, you can confirm the details of the purchase, such as the item sold, the sale price, and the payment method. This thorough documentation protects both the business and the customer, fosters accountability, and can help resolve any potential disputes if they arise later.

The other options, while they may seem relevant in different contexts, do not align with best practices for refund processing. For instance, always giving cash refunds regardless of the purchase could lead to significant financial issues for the business, especially if the payment was made using a different method. Requiring customers to show their ID for all refunds might be overly intrusive and can deter customers from completing their return, while processing refunds without verifying the reason can lead to abuse of the refund policy and financial losses. Therefore, documenting the original transaction stands out as the best practice in this scenario.