Yes, the Magento 2 Store Credit & Refunds Extension allows you to offer Store Credit as a refund option to customers. Instead of providing a monetary refund, you can refund the amount directly as Store Credit, which customers can use for future purchases.

Read this How to Configure Store Credit Extension in Magento 2 Store to setup this extension.

Here are the few more resource to help you get most out of this Magento 2 Store Credit Extension.

• Maximizing revenue with Magento 2 Store Credit Extension
• Raise Loyalty & Returning Visitors with Magento 2 Store Credit Extension
• Store Credit in eCommerce: A Key to Customer Retention