I have Apple iOS IAP successfully implemented in my app and tested in the sandbox. Works great.
I'm concerned that users could buy something with IAP, download it into my app, then complain to Apple and get a refund. There's no obvious way that refunds are reported to my app. Are they simply left out of the list of products I receive during a "restore" operation? Is there some undocumented transaction type that will asynchronously show up in my SKPaymentTransactionObserver when a refund occurs?
Right now I'm operating on the assumption that I need to delete the user's IAP transactions before doing a restore, and that anything refunded will just not be in the list of restored transactions. Is this the right way to do it? Is there any way to test this in the sandbox?
Has anyone seen refunds in a production environment and can explain how they work?