Refunds FAQs

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 itemised refund.

How long does it take for refunds to process?

Refunds can take 9-14 business days to complete

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-authorise charges. The ability to collect security deposits or pre-authorise 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 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 automatically receive a notification. If they need proof of the refund, they can contact you directly to send a refunded payment receipt. Visit Recent Transactions to display the completed refund.

What happens if a refund was sent to a cancelled card?

A few things can happen: 

  • If a new card was activated with the same card issuer, the refund is typically credited to the new payment card.

  • If the account was recently closed recently (last 2 months), the refund may post and the bank will reach 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 bank transfer, 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.