Currently, Dynamics POS only supports where Cashiers can process a refund to the card that was used during the original transaction, even if the card isn't presented for the return.
Linked refunds for cash-and-carry transactions that use credit or debit cards
Linked refunds for customer orders that use credit or debit cards
However from a retailer standpoint, this is a stand practice to perform exchanges in a single transaction.
Because of this issue, there is labor productivity issues where we need to ring returns separate and sales separately, it is a poor customer experience.
Request the team to take this up on the roadmap