The Collaborative International Dictionary of English v.0.48:

Refund \Re*fund"\ (r?*f?nd"), v. t. [Pref. re- + fund.]
   To fund again or anew; to replace (a fund or loan) by a new
   fund; as, to refund a railroad loan.
   [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Refund \Re*fund"\ (r?*f?nd"), v. t. [L. refundere; pref. re- re-
   + fundere to pour: cf. F. refondre, refonder. See Fuse to
   melt, and cf. Refound to cast again, 1st Refuse.]
   1. To pour back. [R. & Obs.]
      [1913 Webster]

            Were the humors of the eye tinctured with any color,
            they would refund that color upon the object. --Ray.
      [1913 Webster]

   2. To give back; to repay; to restore.
      [1913 Webster]

            A governor, that had pillaged the people, was . . .
            sentenced to refund what he had wrongfully taken.
                                                  --L'Estrange.
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   3. To supply again with funds; to reimburse. [Obs.]
      [1913 Webster]

WordNet (r) 3.0 (2006):

refund
    n 1: money returned to a payer
    2: the act of returning money received previously [syn:
       refund, repayment]
    v 1: pay back; "Please refund me my money" [syn: refund,
         return, repay, give back]