Peach mode - Return amount issue

I have orderd Flaunt Red Colored Partywear Embroidered Cotton Palazzo Suit from peach mode few days back. Today i received the item, it was very difficult as shown in picture. And its embroidery work is very poor. Threads coming out from everywhere. I requested for return but they said amount only be transferred to their store wallet. They can't transfer my money to my bank account. (In this case I have to order something from their website again as the exchange of this product) is this even a return policy? As now its compulsory to buy something from their website whether i want or not. Its merely an exchange not a return. They have mentioned cash refund will be given in case of damaged item but now they refuse