Refunds FAQs
Find answers to common questions about refunding payments with Square.
Watch the YouTube video below to learn how to issue refunds via the Square POS app.
Payments processed through Square can be refunded within one year of the original transaction date. Once this window has passed, you must issue refunds outside of Square.
Regardless of whether or not your customer has paid the full balance, orders can be refunded from the Order Manager in your online Square Dashboard, just like any other order. The amount will be refunded to the customer on the Clearpay side. Learn more about Clearpay refunds in the Clearpay Support Centre.
Note: A refund can only be processed for an Clearpay payment taken within 120 days.
Refunds can take between 9 to 14 business days to complete.
Yes! Learn how to process a partial or itemised refund.
There isn’t a limit, but we don’t allow refunding as a way to accept security deposits or pre-authorization charges, for example: rental bonds.
Customers will not receive a notification regarding their refund unless the refund is manually resent.
If the original sale was made with Cash, Cheque or the Other Tender option, the customer won’t receive a notification. If they need proof of the refund, they can contact you directly to send a refunded payment receipt.
Customers can also check their card statement to see if the refund has processed. Refunds from Square will show on a statement as SQ*, followed by the Square seller’s name or business name, and business type.
You will not receive email notifications for cash, check or other tender refunds, as these complete automatically. For card refunds, you will receive an email notification once a refund is requested as well as when the refund completes.
You and the customer will automatically be notified about the decline. In this case, you will be instructed to issue an alternative form of payment to the buyer to complete the refund, such as cash, check, or gift card credit.
A few things can happen:
- If a new card was activated with the same card issuer, the refund is usually credited to the new payment card.
- If the account was closed recently (last two months), the refund may post and the card-issuer usually contacts the buyer directly to 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 seller, of the failure and you’ll need to refund the customer outside of Square via another method.
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 Square Support.