Payments refunded via your Square app or online Square Dashboard can be refunded within one year of the original transaction date. Refunds processed through Square Online – including Afterpay online transactions – must be requested and completed within one year of the original transaction.
When you issue a refund, your customer will be refunded the requested amount and you will be refunded Square’s processing fee.
Watch the video below to learn more about processing videos via the Square POS app:
|Processed more than one year ago via Dashboard||No|
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Learn more about processing refunds from the Square app or your online Square Dashboard.
How Refunds Work
Full Refunds: Once a refund is initiated, Square will debit the amount you were paid (sale amount minus initial processing fee), and will credit the full refund amount back to your customer’s card. Square will be responsible for covering the processing fees associated.
For example, if the amount of the refunded transaction was $25, then you will be debited $24.31 and Square covers the fees ($0.69 in this case). $25 will be returned to your customer.
Partial Refunds: The same process applies to partial refunds. The amount you are debited and fees Square refunds will be proportional to the partial refund amount requested.
You will receive email notifications once a refund is requested as well as when a refund is completed.
Where will the funds or refund come from?
How you are charged for refunds depends on your transfer schedule.
If you receive automatic transfers, your Square account balance will be used to cover the amount of the refund and your bank account will be debited for any remaining amount needed. Using the $25 payment/refund example above, imagine you had $20 in your Square account balance. To repay your customer, Square would first take $20 from your Square account balance and then debit your bank account for the remaining $4.31. This activity will be reflected in your Transfer Reports on the business day you processed the refund.
If you have a manual transfer schedule, Square may debit funds from your bank account even if you have a sufficient Square account balance to cover the refund amounts. This will happen when a refund is requested for a payment taken on a prior day. Using the $25 payment/refund example above, imagine you had $20 in your Square account balance, but the refund was requested a few days after the original payment was taken. To repay your customer, Square would debit your bank account for $24.31.
Funds removed from your balance to cover refunds will be reflected as an ‘Adjustment’ line item in Activity > All within the Balance section of your online Square Dashboard. If a debit to your bank account is made, it will appear in Activity > Transfers.
It takes 2-7 business days to process a refund with Square. Once the refund is processed and sent to your customer’s card issuing bank, it can take another 2-7 business days (depending on the bank’s processing speeds) for the refund to post to your customer’s account. In total it can take 9-14 business days for your customer to receive their refund.
Refunds processed through Square Online – including Afterpay online transactions – must be requested and completed within one year of the original transaction.
Note: Refund requests that aren’t covered by your Square balance may not be approved, even if requested within the appropriate timeframe.
Customise your refund and return policy from the Receipt settings in your online Square Dashboard. Your policy appears on email, text and printed receipts. If a return policy is absent, it’s assumed there’s no policy. Be sure to clearly state if you don’t offer refunds or warranties.
Note: All major card companies allow cardholders to chargeback purchases if a customer can demonstrate that they didn’t receive the purchased product or service. Learn how to protect yourself against chargebacks.
Refund Afterpay Transactions
If the customer completed a payment using Afterpay Card and Square hardware, you can issue a full or partial refund within one year of the original transaction date. Learn more about how refunds and returns work at Afterpay via their website.
Reporting details for your refunds can be found in both the Transactions and Balance sections of your Square Dashboard or Square Point of Sale app.
Find answers to commonly asked questions about refunds via our Refunds FAQ.