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Refund Overview

Process refunds for payments directly from the Square app or your online Square Dashboard.

Refunds processed through Square 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. Note: Payments accepted before October 2018 must be refunded within 120 days. Once this window has passed, you must issue refunds outside of Square.

When you issue a refund, your customer will be refunded their full purchase amount, and you will be refunded Square’s processing fee.

A team member’s ability to process refunds is determined by their role and permissions.

Overview: Refunds with Square

Refund Details Payments
Full Refund Yes
Partial Refund Yes
Itemized Refund Yes
Processed more than one year ago via Dashboard No
Processed more than 120 days ago via mobile device No

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For example, if the amount of the original transaction was $25, then $24.31 is withdrawn from your account balance and the fees ($0.69 in this case) are covered by Square.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

You will receive email notifications once a refund is requested as well as when a refund completes.

Note: If using Manual Transfer or Square Card, Square immediately debits your linked bank account to cover and complete the refund. This way your customer is refunded promptly instead of relying on your Square balance awaiting tranfer.

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.

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

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 the Receipt settings 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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