If your customer requested a refund for a returned goods or for cancellation, you can process a refund within the app or your Square Dashboard. All refunds must be processed within 120 days of the payment date.
*Please note that once the refund is processed, it cannot be canceled. Please be sure to process the correct refund.
Refund Overview
Square first looks to your Square account balance to cover the refund amount. If the account balance covers the refund, then the refund is properly processed and the full purchase amount is returned to your customer.
If your account balance doesn’t cover the refund amount, then the refund will not be processed and the error message will be displayed. Once your account balance has a sufficient amount, then you can process the refund. If you cannot expect new sales within a week to issue the refund, please contact Square Support for further instructions.
What is Square Account Balance?
Square Account Balance is the next deposit amount. You can check the amount by logging in to your Square Dashboard. Square sends your funds according to the deposit schedule.
Refund Timeline
Square sends the refund data to the credit card company on the next business day. However, depending on the credit card company’s processing speed, it can take up to 7-10 business days for the refund to be posted on your customer’s account. Please note that Square does not have the control over this processing speed. If the refund process occurs after the cut off date of the billing cycle, it is possible that the amount will be charged to the credit card holder. However, this amount should be offset with next month payment.
Process a Refund
- Process Full, Itemized, or Partial Refunds In-App
- Tap the following icon in the navigation bar
- Tap Transactions.
- Select the payment you’d like to refund > Issue Refund.
- Tap Select All Items to refund the entire sale, select the specific items you’d like to refund, or tap Amount to refund a specific dollar amount.
- Tap Next.
- Select items to restock and choose a reason, or opt to Skip Restock.
- Tap Refund.
When issuing an itemized refund, the amount being refunded will reflect any applicable taxes (e.g. Sales Tax) and discounts for the selected item(s).
For Custom Amount transactions, you’ll have the option to refund any amount up to the total amount of the sale.
- Process Full and Partial Refunds Online
- Visit Sales > Transactions in your online Square Dashboard.
- Select the payment you’d like to refund > Issue Refund.
- Enter the amount you want to refund and the reason for the refund.
- Click Refund.
