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Home>Issuing Refunds

Refund Overview

Process full or itemised refunds for payments directly from the Square Point of Sale app or your online Square Dashboard.

Payments refunded via your Square POS app or online Square Dashboard can be refunded within one year of the original transaction date. Refunds processed through Square Online must be requested and completed within 120 days 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:


Refund Details Payments
Full Refund Yes
Partial Refund Yes
Itemised Refund Yes
Processed more than one year ago via Dashboard No
Processed more than 120 days ago via mobile device No

How Refunds Work

Refund Process

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 completes.

Using Square's Team Management? A team member’s ability to process refunds is determined by their role and permissions.

Where will the funds or refund come from?

How you are charged for refunds depends on your transfer schedule.

If you receive automatic nightly 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 Square Dashboard. If a debit to your bank account is made, it will appear in Activity > Transfers.

Refund Timeline

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.

Payments processed on the Square Online are only eligible to refund within 120 days.

Note: Refund requests that aren’t covered by your Square balance may not be approved, even if requested within the appropriate timeframe.

Refund Policy

Customize 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.

Learn more about processing refunds from the Square app or your online Square Dashboard.

Learn more about: Point of Sale

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