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Process a return or exchange with Square for Retail

Who is this article for?
This article is for retail owners and staff subscribed to Square for Retail Free, Plus or Premium and need to process a return or exchange. Your team members must have orders and transactions permissions enabled. Learn more about custom permissions with Square.

About returns and exchanges

With Square for Retail, you can process a refund or an exchange through the Square Retail POS app on an itemised basis. If your customer finds something they would like instead, you can process the difference on the spot.

Before you begin

  • Exchanges won’t reflect on your Square Transfer Summary or on accounting software like QuickBooks.

  • Your customer’s refund credit is initially drawn from your Square balance. If you don’t have a balance available in your Square account to cover the refund, we will debit the remaining amount from your linked bank account.

Depending on the price of the replacement item, the cart total will either be positive, negative, or even.

  • If the replacement item is less than the returned item, you can issue a refund to your customer’s card for the difference.

  • If the new item is more, collect payment with any of the standard payment methods.

  • If the replacement item is the same price as the returned item, tap Even Exchange to close out the transaction.

When you issue a refund for an item sold as a decimal quantity, you will need to refund the entire item.

Complete return or exchange

You can process a return or exchange through the Square Retail POS app or your online Square Dashboard. You also have the option to refund to a Square Gift Card or eGift Card. Review each section below for detailed instructions.

Issue refund from Transactions on Retail POS

  1. Tap Transactions.
  2. Locate the original transaction by either swiping your customer’s card or searching for the receipt number.
  3. Tap Return or Exchange.
  4. Select item(s) to restock or Skip this step > tap Next.
  5. You can either issue a refund or search your item library to add additional items to the cart. The cart amount will automatically adjust, calculating the difference between the original and replacement items.

Issue refund from Customers on Retail POS

  1. Tap Customers.
  2. Find your customer by searching for their name.
  3. Scroll down to Activity > tap the transaction to bring up the details page.
  4. Select Return or Exchange.
  5. Select item(s) to restock or Skip this step > tap Next.
  6. Tap Refund or add additional items update your cart and proceed through the checkout flow.

Issue refund from your online Square Dashboard

  1. Go to Reports > Transactions.
  2. Click on the payment you’d like to refund, then click (•••) > Issue Refund.
  3. Choose to:
    • Refund Items: Select items to refund, then click Refund items.
    • Refund Amount: Enter the amount you’d like to refund and the reason you’re refunding the payment, then click Issue Refund.

Issue refund to a gift card on Retail POS

  1. From the Retail POS, tap Transactions.
  2. Search the receipt number or full debit/credit card number to find the transaction.
  3. Tap the transaction you wish to refund.
  4. Select item(s) to refund > tap Return or Exchange.
  5. Select item(s) to restock or Skip Restock.
  6. Tap Add Gift Card or Swipe, then swipe or enter the gift card number.
  7. Tap Refund.

Review Square eGift cards to learn how to refund your customer’s payment to an eGift Card.

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