A refund was processed and the order details show as being refunded on Shopify, but an "Alert: Refund not processed!" notification was received.
The "Alert: Refund not processed!" notification is sent when orders that were processed through the Recharge Checkout are refunded on Shopify. Orders on the Recharge Checkout on Shopify are processed through the payment gateway connected to your Recharge account, therefore you must process refunds directly through Recharge to issue funds.
Review the refund details in the Shopify order timeline and confirm the Shopify order displays the payment processor as a manual gateway:
The Alert notification is sent to notify the store owner and ensure the refund is processed correctly. Review the Issuing a refund in Recharge guide for steps to correctly process the refund.
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