Returns doesn’t replace Clover’s refund and exchange functionality. You still process refunds and exchanges in Clover’s Orders app as usual. Returns works alongside it so you can put the returned items back into your inventory counts.
Every refund or exchange you process in the Orders app is called a Return Event. Each Return Event triggers a pop-up from the Returns app where you choose which items to add back to inventory. Learn how to return items during a Return Event.