Process refunds for payments directly from the Square app or your online Square Dashboard. Refunds from sales processed through Square Point of Sale or Square Invoices must be processed within 60 days of the payment date, and refunds of sales through the Online Store must be processed within 120 days from 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 Square App Payments Online Store Payments
Full refund Yes Yes
Partial refund Yes Yes
Processed more than 60 days ago No Yes
Processed more than 120 days ago No No

If you pass the 60-day mark for Square Point of Sale payments or the 120-day mark for Online Store payments, you’ll need to refund the sale outside of Square. Fees are not reimbursed for refunds issued 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For example, if the amount of the original transaction was $25, then $24.31 is withdrawn from your account balance and the fees ($0.69 in this case) are covered by Square.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

Process Full or Partial Refunds In-App

  1. Tap the following icon in the navigation bar:Three Horizontal Lines
  2. Tap Activity.
  3. Select the payment you’d like to refund > tap Issue Refund.
  4. Enter the amount you want to refund and a reason for the refund.
  5. Tap Refund.

Process Full and Partial Refunds Online

Watch the video below to learn how to process refunds from your online Square Dashboard:

  1. Visit Transactions in your Square Dashboard.
  2. Select the payment you’d like to refund > click Actions > Issue Refund.
  3. Enter the amount you want to refund and the reason for the refund.
  4. Click Refund.

Cash, Checks, and Other Tender Refunds

To balance your books, you can refund cash, checks, and other tender payments within 180 days of the payment date. Square doesn’t process any funds for these payment types, and functions only as an organizational tool. 

Review answers to commonly asked questions about refunds.

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