Best way to manage refundable deposits?

[aboderoc]

Hello! We are a furniture store and take refundable deposits (a lot of them) when people want to borrow upholstery samples to take home. Currently, we simply charge a fee as a sale and then refund it when the samples are returned. This is a poor solution for a few reasons: 1) Square no longer refunds fees, so we're out the fee every time, and 2) this triggers an automated coupon to drive follow-up purchases, which often means someone borrows a sample and then gets a coupon for 10% off their new living room. Currently, we've just abandoned the automation.

Does anyone have a good solution for offering refundable deposits that is more effective?

Thank you!

[maxpete]

@aboderoc thanks for your question here! @Twpchair tagging you because I feel like you might have a good solution here!

[Twpchair]

Hopefully, that helps, and if she responds I have templates of all of the return policies and rental. I can send her and she can put in their information and change it up a bit. 

[Twpchair]

Hello, I am a retail furniture store and we have a zero-return policy! 1. Our new furniture comes with a warranty to begin with and probably 75% don't fill out the paperwork or keep their receipts. While the guys are either loading up or scheduling a delivery or pick-up we do the warranty paperwork before they leave and I fax it right then. That stops that problem. 2. We stand behind our custom-built furniture or gently used sections 100% but in-store. If it's a custom-built table set a 1 year in-store policy to replace, fix, or a gift certificate and we get the old set back. 99% of my workers can fix it redo and resell it that takes care of that. Now, I have certain items people can rent. I either hold their card on file (which I hate to do) or charge them a cash deposit for X amount of days. Most of ours are weddings. We are very clear and tell them upfront that it's posted throughout the store and when they leave they get a copy of whichever they are doing and sign it plus whoever is working. In 12 years, not 1 issue. I decided from day 1 that we are too busy to deal with drama or returns when honestly 3/4 is minor silly things or the customer once they got it home realized it's too big or the color doesn't match my floor or decor type thing. We have 5 stars on all platforms because of being transparent and communicating. Good luck but you need to come up with a different return policy! It's a pain, and takes up your time and money. Good luck and keep us posted on which way or how you curb this. 

[aboderoc]

Hi - thanks for your reply!

I'm sorry, I think maybe I didn't phrase my question well. Our upholstery swatch trial policy works well for us - we don't have any issues with customers and returns. Our problem is managing refundable deposits through Square. I'm not willing to make my customers have cash to make the deposit, but if we run it through Square it acts like a full sale; triggering non-refundable fees and new customer automated coupons. 

I am looking for suggestions about ways to use Square to refundable deposits outside of simply making and refunding the sale. I don't want to have Square count it as a "sale" when, really, it is a refundable deposit. 

[Twpchair]

Hmm, wow yeah, once you swipe that card it is done. I don’t know how you feel about or if you are able to say invoice them for say 15 days or whatever your policy is for them to use the sample and then you have their card on file and if it’s not returned on time or X amount of days if you run it through an invoice I’m not sure if it would trigger a coupon vs swiping? We do custom orders and invoices maybe 8-10 times a month or 6 weeks depending on what is getting built. I send out the invoice about 1-2 days prior to being done and let them know or remind them of the contract. Never a problem with it. We don’t do coupons though and that would be a question I could ask a few people who do and invoices to avoid that multiple times of swiping because of the same thing the coupons and fees. That is the only thing I can think of besides asking for cash or check to hold until sample is returned. I’ll get back with you tomorrow morning! I’m going to screenshot this and tag them in if they have a better idea. We can brainstorm through this!