Setting up WC wallet’s status could be clumsy. While we are trying to find a better solution for this, this blog might help you with it.
Firstly, “Credits Applicable If The Order Are In These Method” settings. Let’s take Cash on Delivery for example. It really doesn’t have the cash paid in advance or prior to the delivery of the order. So we disable the Cash on Delivery in this option. This is just an example, you can update other payment methods based on how you have planned for your website.
Secondly, “Allow Credits Transferred When Order Status is in” settings. This setting restricts the customer to ask for a refund only in that particular order status. Example: it doesn’t make sense that a customer can ask for a refund when the order status is “Processing” or “In transit” with the payment method of “Cash on Delivery”. But this setting allows you to have a cancel request option available on the order status is “Delivered” or “Completed” so we enable cancel request only these two statuses.
On a personal note, thanks for using this plugin. You can any question regarding this plugin here