@Yvonne-and-Morris0 If the reservation hasn't started, Airbnb refunds the guest according to your cancellation policy out of the money they paid when they booked. There is nothing for you do to except if you want to refund any portion of the cost that would normally be due to you. I had a guest cancel about 3 weeks before the reservation started and I have a strict policy. I told Airbnb to go ahead and refung the 50% that would have been paid out.
If the reservatio has already begun and a payout has been released, you would need to go to the Resolution Center to send money to the guest. The amount would come out of your next payout.
Here are some link that should be helpful to you:
https://www.airbnb.com/help/article/165/how-do-i-refund-my-guest
https://www.airbnb.com/help/article/767/what-is-the-resolution-center
All refunds go to the guest's orginal payment method. Depending on the type of payment method and the company (card issuer) that services the payment method, it can take anywhere from 1 to 5 business days for the refund to appear on the guest's account.
I hope this helps!