Process a Return or Exchange With Square for Retail

There’s a few ways to issue a return or exchange with Square for Retail. Both returns and exchanges can be issued through the Square for Retail app on an itemized basis — and if your customer finds an something they would like instead, you can process the difference on the spot.

Returns and Exchanges

There are a couple of ways to process a return or exchange through the Retail app.

Processing a Return or Exchange from Transactions

  1. Tap the search bar > Transactions.
  2. Locate the original transaction by either swiping your customer’s card or searching the receipt number.
  3. Tap Return or Exchange.
  4. Select item(s) to restock or Skip this step > tap Next.
  5. You can either issue a refund or search your item library to add additional items to the cart. The cart amount will automatically adjust, calculating the difference between the original and replacement items.

Cart Total: Depending on the price of replacement item, the cart total will either be positive, negative, or even.

  • If the replacement item is less than the returned item, you can issue a refund to your customer’s card for difference.
  • If new item is more, collect payment with any of the standard payment methods.
  • If the replacement item is the same cost as the returned item, tap Even Exchange to close out the transaction.

Note: Exchanges will not reflect on your deposit summary.

Processing a Return or Exchange from Customers

  1. Tap the search bar > Customers.
  2. Find your customer by searching for their name.
  3. Tap More Info.
  4. Scroll down to Transaction History > tap the transaction to bring up the details page.
  5. Select Return or Exchange.
  6. Select item(s) to restock or Skip this step > tap Next.
  7. Tap Refund or add additional items update your cart and proceed through the checkout flow.

Issuing a Refund to a Gift Card

If you’d like to issue a customer store credit, you can issue a refund to a Square Gift Card.

  1. From the Retail app, tap the search bar > Transactions.
  2. Search the receipt number or full credit card number to find the transaction.
  3. Tap the transaction to refund.
  4. Select item(s) to refund > tap Return or Exchange.
  5. Select item(s) to restock or Skip Restock.
  6. Tap Add Gift Card or Swipe, then swipe or enter the gift card number.
  7. Tap Refund.

Check Gift Card Balance to Verify

Confirm the balance of your customer’s gift card once you issue a store credit:

  1. On the homescreen, tap Actions.
  2. Tap Check Gift Card Value.
  3. Swipe or enter the gift card number in manually.

Issue a Return From your Dashboard

To refund a payment online:

  1. Log in to the Transactions tab of the Square Dashboard.
  2. Click on the payment you’d like to refund, then click Issue Refund at the top right corner.
  3. Enter the amount you’d like to refund and the reason you’re refunding the payment, then click Issue Refund.

Your customer’s refund credit is initially drawn from your Square balance. If you don’t have a balance available in your Square account to cover the refund, we’ll debit the remaining amount from your linked bank account.

Returns and Exchanges Reporting

Your online Square Dashboard offers reporting tools to help you keep track of your sales, returns, and item exchanges. There are three types of exchanges:

Retail POS App Cart: Positive Value: If the new item is more, you can collect payment with any of the standard payment methods.

Example:

  • Your customer purchases a bar of artisan soap for $10 with a 1% sales tax.
  • They like the soap, but they’re allergic to one the ingredients and exchange it for a $40 shampoo set (also with a 1% sales tax).

Your online Square Dashboard reporting will reflect the following figures:

Sales Refunds Net
Gross Sales $40 ($10) $30
Tax $0.40 ($0.10) $0.30
Net Sales $40.40 ($10.10) $30.30
Exchange Credit ($10.10) $10.10 $0
Total Collected $30.30 $0 $30.30

Retail POS App Cart: Evan Exchange: If the replacement item is the same cost as the original item, simply issue an even exchange.

Sales Refunds Net
Gross Sales $10 ($10) $0
Tax $0.10 ($0.10) $0
Net Sales $10.10 ($10.10) $0
Exchange Credit ($10.10) $10.10 $0
Total Collected $0 $0 $0

Retail POS App Cart: Negative Value: If the replacement item is less than the returned item, you can issue a refund to your customer’s card for the difference.

  • Your customer originally purchased a $50 tote bag with a 1% sales tax.
  • They decided they have too many tote bags and want to just pick up some artisan soap for $10 with a 1% sales tax.

Your online Square Dashboard reporting will reflect the following figures:

Sales Refunds Net
Gross Sales $10 ($50) ($40)
Tax $0.10 ($0.50) ($0.40)
Net Sales $10.10 ($50.50) ($40.40)
Exchange Credit ($10.10) $10.10 $0
Total Collected $0 ($40.40) ($40.40)

Note Exchanges won’t reflect on your Square Deposit Summary or on accounting softwares like Quickbooks.

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