Hi all 👋 Thanks for reaching out to the Seller Community. I can certainly provide some additional information on the recent Refund Policy update.
Square has incurred network costs from many of our payment partners for these refunds over the years but has covered those costs on your behalf. As we continue to invest in new payment offerings and improve the payment experience for you, the processing fees for each payment will ensure a high-quality experience for you and other sellers.
You will still be able to issue a refund for any purchases within a year of the original transaction. When you issue a full or partial refund, Square will debit your account for the amount of the refund and send that amount to your customer. If the amount of the refund is not available in your Square account then your linked bank account will be debited for the necessary amount. You can find more information about the refund process here.
We understand that considering cost is an important part of your business and we are committed to providing you with fair and transparent pricing. If returns are not a frequent part of your business but do impact you, we recommend visiting our Return Policy article for suggestions on creating a policy that best suits your business. For example, you may consider a partial return or restocking fee to account for the cost of refunding your customers.
If you experience refunds for cancellations related to an upcoming event, rental, or transportation, we recommend that you explore splitting payments by using Square Invoices or ACH Transfer. This will allow you to take a partial payment up front and limit the amount you will need to refund in the event of a cancellation.
I hope this information is helpful but please do let me know if you have any additional questions 🙂
cc: @rivas8409 @Candlestore @PartyManiaMD @SnomoGirl
Violet
Community Moderator, Square
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