Process refunds for payments directly from the Square app or your online Square Dashboard. All refunds must be processed within 120 days of the payment date.

When you issue a refund, your customer will be refunded their full purchase amount, and you will be refunded Square’s processing fee.

An employee’s ability to process refunds is determined by their administrator.

Overview: Refunds with Square

Refund Details Payments
Full Refund Yes
Partial Refund Yes
Processed more than 120 days ago No

Note: If 120 days has passed from the original payment date, you’ll need to refund your customer outside of Square.

If your payment was processed using an Interac Debit card, you will need to process your refund on the Square Point of Sale app with the original purchasing card present.

How Refunds Work

Square first looks to your Square account balance to cover the refund amount. If your account balance doesn’t cover the refund, Square will withdraw the amount you were paid (sale amount minus initial processing fee) from your bank account, then credit it back to your customer’s card.

For example, if the amount of the original transaction was $25, then $24.34 is withdrawn from your account balance and the fees ($0.66 in this case) are covered by Square. The full purchase amount is always returned to your customer.

Refund Timeline

It takes 2-7 working 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 working 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 working days for your customer to receive their refund.

**Note: **Refund requests that aren’t covered by your Square balance may not be approved, even if requested within 120 days of the payment date.

Refund Policy

You can customize your refund and return policy from the Receipt tab 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 credit card companies allow cardholders to charge back purchases if a customer can demonstrate that they didn’t receive the purchased product or service. Learn how to protect yourself against credit card chargebacks.

Learn how to process a refund from your Point of Sale app or online Square Dashboard.

Process Refunds
Learn how to process a full or partial refund from your Point of Sale app or online Square Dashboard.

Process Full or Partial Refunds In-App on an Android Device

  1. Tap the following icon in the navigation bar:Three Horizontal Lines
  2. Tap Transactions.
  3. Select the payment you’d like to refund > tap Issue Refund.
  4. Enter the amount you want to refund and a reason for the refund.
  5. Tap Refund.

Process Full, Itemized, or Partial Refunds In-App on an iOS Device

  1. Tap the following icon in the navigation bar:Three Horizontal Lines
  2. Tap Transactions.
  3. Select the transaction you’d like to refund > tap Issue Refund.
  4. Tap Refund All Items to refund the entire sale, select the specific items you’d like to refund, or tap Amount to refund a specific dollar amount.
  5. Tap Next.
  6. Select a reason for the refund > tap Refund.

When issuing an itemized refund, the amount being refunded will reflect any applicable taxes (e.g. Sales Tax) and discounts for the selected item(s).

For Custom Amount transactions, you’ll have the option to refund any dollar amount up to the total amount of the sale.

Note:

  • Any payment processed with an Interac Debit card must be refunded in person through the Square Point of Sale app with the original purchasing card present.
  • At this time, you’re not able to issue a partial refund on an item.
  • Since a tip is considered a line item, you can refund it individually. Issuing a refund for a tip will not allow you to adjust the amount since you are unable to issue a partial refund on an item. In order to receive a tip after it’s been refunded, you will need to reprocess your customer’s card.

Process Full and Partial Refunds Online

  1. Visit Transactions in your online Square Dashboard.
  2. Select the payment you’d like to refund > click Actions > Issue Refund.
  3. Enter the amount you want to refund and the reason for the refund.
  4. Click Refund.

Note: If you issued a partial refund, the remaining portion of the payment can be refunded at a later time. Partial refunds will not include tax and tip in reports.

Cash, Cheques and Other Tender Refunds

To balance your books, you can refund cash, cheques, and other tender payments within 180 days of the payment date. Square doesn’t process any funds for these payment types and functions only as an organizational tool.

Review answers to commonly asked questions about refunds.