Find answers to common questions about refunding payments with Square.
How do I refund a payment?
Learn how to issue a refund through Square.
Can I refund part of the original payment amount?
Yes! Learn how to process a partial or itemized refund.
Can I refund all card types?
Yes, any transaction processed through Square can be refund within Square’s 120 day window through either your Square Dashboard or Point of Sale app. 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.
How long does it take for refunds to process?
Do I have to pay a fee for issuing refunds?
No. When you refund, your customer is refunded their full payment amount, and you’re refunded any processing fees.
Is there a limit on the number of refunds I can process with Square?
There isn’t a limit, but we don’t allow refunding as a way to accept security deposits or pre-authorize charges. The ability to collect security deposits and pre-authorize charges aren’t currently available through Square.
How long after accepting a payment do I have to issue a refund?
Refunds processed through Square must be requested and completed within 120 days of the date of the transaction. Once this window has passed, you must issue refunds outside of Square.
Will my customer be notified when my refund completes?
If your customer used a credit card to make the initial purchase and received a digital receipt, they’ll get a message when you initiate the refund.
Customers can also check their card statement to see if the refund has posted. Refunds from Square will show on a statement as SQ*, followed by the merchant’s name or business name, and business type.
If the original sale was made with cash, cheque or the Other Tender option the buyer won’t receive a notification. If they need proof of the refund, they can contact you directly to send a refunded payment receipt.
What happens if a refund was sent to a cancelled credit card?
A few things can happen:
If a new card was activated with the same card issuer, the refund is normally credited to the new payment card.
If the account was closed recently (last 2 months), the refund may post and the card-issuer usually reaches out directly to the buyer and notify them of any next steps.
If the account has been closed for some time, the credit will fail. In this case, we’ll notify you, the Square merchant, of the failure and you’ll need to refund the customer outside of Square via cheque or cash.
**Next Steps: **Have your customer reach out to their card issuing bank to locate the refund. If they’re unable to find their credit after talking with their bank, contact us.