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Processing Returns from a Split-Tender Transaction / Manual Returns
Being a small boutique, the only returns we allow are for exchange or store credit, so there's lots of gift cards floating around out there with people. Almost every day people purchase items using the remaining balance on their gift card, then pay the rest via cash/CC/debit/etc..
This is a multi-faceted issue. First off, being that we don't allow money back, it seems there's literally no way around this? Second, most normal people just throw away a gift card if it's emptied out, so if they end up coming in to return something that balance is just gonna go to a card that they don't even have?
This entire problem could just be solved by allowing manual returns, like pretty much every other POS software company does, plain & simple.
Any input into this would be highly appreciated!
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@rarebloomshop I don't have all the answers, but wanted to pass along what I have seen in the industry. With credit cards and some of the pre-paid cards, the card issuer does not allow any kind of transaction where the customer could potentially get cash back. Same with gift cards, the way they are sold and taxes they cannot be exchanged for cash mostly anywhere. Most of the time gift card sales are final. That is why most often you only see "in store credit" or gift cards issued to people. I have seen big box retailers even attaching in store credit to a person's ID so only they can redeem it to prevent fraud and misuse.
So even though we may be small, square as the processor of record can't refund cash back on a card transaction as this would set up for massive abuse and fraud.
You could set up an alternate tender that isn't cash for returns and use it to load a gift card. Since you already received the funds this tender would just represent the liability on accounts payable for the money out there. Unfortunately, you will bear the cost of the gift card processing fee. Or you could just print a certificate and use the certificate as an alternate tender. Then you would have your "manual" return process and payment.
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Roddy Vending Company, Inc.
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Thanks for the reply!
That part makes sense I guess, not allowing for cash back refunds on a card transaction. I'm not exactly sure how that relates to not allowing items to be refunded to a gift card for a split-tender transaction. One tender allows it, split-tender doesn't.
What do you mean by setting up an alternate tender? We don't do cash returns of any kind, just "in store credit", so this issue is gonna present itself very often.
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I agree. This is a feature that we need to be able to do.
We only allow returns to go on a gift card. If the customer purchases new items and uses a gift card from us and puts the balance on her VISA and then she returns some of it three days later, I need the option to put that return back onto a gift card. I do not want to refund her VISA. I have figured out a "go around" but it is confusing and I shouldn't have to do that. I should be able to give her a brand new gift card with her latest return on it.
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