What if a refund was issued to a card that is no longer active?

[Idocakes]

So I issued a patrial refund to a customer and the money was taken out of our account. The customer said they haven't received it because the card I have on file was lost and they had to replace it. What do I do now?

[GlassJudy]

I think your first step would be to have the customer contact their bank and see if there's anything they can do to help out.  If the funds went into a deactivated account, the bank should be able to see that deposit (or at least attempted deposit).  Since the refund was approved, the money must be somewhere in the bank's accounts.  If it's in the old account, the customer will probably have to provide proof that they were the account's holder, at which time the bank should transfer the money into the active account.  If that doesn't work out, it's possible Square may be able to help out, but I'm not sure how.  Your second step would be to contact Square and see if they can help.

Going forward, I can see this becoming a possible problem for Square retailers to be dealing with, since they only offer the option to refund a charged/debited sale back onto the original card, at least on our Register system it's the only option.