Cash Out

[kmt32]

In the state of California if a customer requests to cash out a gift card with a balance of $10 or less a merchant is required by law to give the customer the cash value of the gift card. If I, as a California business owner who conducts her business through Square, want to offer gift cards, will I be protected by Square if a customer wants a cash out? In other words, how does Square handle the situation when a customer wants the money returned? Will Square return the money or will my business have to take a loss? Does anyone know? It affects whether or not some of us can offer gift cards!

[ryanwanner]

Hello @kmt32 

As far as Square is concerned, once the Gift Card purchase transaction is complete and the funds are deposited into your account they have done their job.

Best case scenario for Gift Cards (and if your business can do this please tell me how!!) is to take the money from the gift card purchase and put it into a separate account. When the Gift Card comes back into your business and is redeemed, you transfer the amount of the sale into your operating accounts. This also ensures you would have the $10 cashout available if requested.