Each Order Status update will have an effect on the order. 

STRIPE & REFUNDING

The integration with the Stripe gateway connection is a 2 way connection - it will allow for an automatic refund of a monetary payment. Please note: If marking an order as REFUNDED, this will automatically trigger a refund from your Stripe account, sending that full amount back to the customer from your current Stripe balance. The system is able to track which orders have been refunded, and keep a thorough account of the transaction history. This will also be visible by the customer. 
The refund is not connected to your Bank Account, only your Stripe account. 

If using the Competition module, you have the ability to refund a single item in the order - see Cancelling an Entry - Refunding. The order will display the order now as 'Partially Refunded', with the total refunded displayed on the order.