Refund Overview

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.

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, and then credit it back to your customer’s card.

For example, if the amount of the original transaction was $25, then $24.31 is withdrawn from your account balance and the fees ($0.69 in this case) are covered by Square. The full purchase amount is always returned to your customer.

Refund Timeline

It takes 2-7 business 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 business 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 business 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 the appropriate timeframe. 

Refund Policy

Customize your refund and return policy from Receipt 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 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 chargebacks

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

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