Canceling or Refunding Orders Paid for with Gift Cards
From FloristWiki
You can issue a refund for an order that was paid for in part or in full by a gift card. When an order is is canceled where payment was made with a gift card, the refund value is returned to the gift card as long as the gift card has not expired.
You can issue a refund in the Order Entry or Point of Sale windows using either One-Click refunds or by canceling the order.