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Home>Issuing Refunds

Refunds FAQ

Find answers to common questions about refunding payments with Square.

How do I refund a payment?

Learn how to issue a refund through Square

How long after accepting a payment do I have to issue a refund?

Refunds processed through the Square Point of Sale on a mobile device must be requested and completed within 120 days of the original transaction. Payments refunded via your online Square Dashboard can be refunded within one year of the original transaction date.

Once this window has passed, you must issue refunds outside of Square.

How long after accepting a payment via Square Online do I have to issue a refund?

Payments processed on Square Online are only eligible to refund within 120 days.

How long does it take for refunds to process?

Refunds can take 9–14 working days to complete. Square’s full refund time frame typically takes 2-7 business days. Once the refund is processed and sent to your customer’s card issuing bank, it can take another 2-7 business days (depending on the bank’s processing speeds) for the refund to post to the customer’s account. Keep in mind that the time frame to post a pending refund is ultimately up to the card-issuing bank.

Can I refund part of the original payment amount?

Yes! Learn how to process a partial or itemised refund.

Do I have to pay a fee for issuing refunds?

No. When you refund, your customer is refunded their full payment amount, and you are 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.

Will my customer be notified when my refund completes?

If a customer received a digital receipt for the original payment, they will receive a digital credit memo when the refund has been processed and completed.

If the original sale was made with cash, cheque, or the Other Tender option, the buyer won’t receive notification. If they need proof of the refund, they can contact you directly to send a refunded payment receipt.

Customers can also cheque 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.

How do I know when a refund is complete?

You will not receive email notifications for cash 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.

What happens if a refund was sent to a canceled 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 through another method, such as cheque, cash, or gift card.

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.