How to refund a transaction in Square
To refund a transaction in Square, open the Square app or go to squareup.com, find the transaction you want to refund, and select the refund option. Square will walk you through confirming the refund amount — you can refund the full transaction or a partial amount. The refund processes back to the customer's original payment method, usually within one to three business days depending on their bank.
The exact steps depend on whether you're using the Square app on a phone, a computer, or a physical Square reader. All three routes reach the same place, but the menu paths differ slightly. Square keeps a record of every refund you issue, so you can look back at any point to see what was refunded and when.
Key Takeaways
- Refunds in Square go back to the customer's original payment method, not as cash or store credit.
- You can refund the full amount or issue a partial refund for part of the transaction.
- Refunds typically take one to three business days to appear in the customer's account, depending on their bank.
- Square stores a complete record of every refund, so you can review or dispute a refund later if needed.
- You cannot refund a transaction that was never successfully processed in the first place.
Refunding through the Square app on your phone
Open the Square app and tap the Transactions tab at the bottom of the screen. Search for the customer's name, the transaction amount, or the date to find the payment you want to refund. Once you locate it, tap the transaction to open its details.
At the bottom of the transaction details screen, you'll see a Refund button. Tap it. Square will show you the full transaction amount and ask you to confirm the refund. If you want to refund only part of the transaction, change the amount in the box before confirming. Then tap Refund again to complete it. The refund is now in process.
Refunding through Square on a computer
Go to squareup.com and sign into your account. Click Transactions in the left menu. You'll see a list of all your recent transactions. Use the search bar or scroll to find the one you need to refund, then click on it to open the details.
On the transaction details page, look for the Refund button, usually near the top right. Click it. A box will appear asking you to enter the refund amount. The full transaction amount is already filled in, but you can change it to a lower number if you're issuing a partial refund. Click Refund to confirm, and the refund begins processing.
What happens after you issue a refund
Once you confirm a refund, Square sends it back to the customer's bank or card issuer. The refund does not appear as cash in your register or as a credit in your Square account — it goes directly to the original payment method. This means if a customer paid with a debit card, the money goes back to their debit account. If they paid with a credit card, it reduces their balance or appears as a credit on their next statement.
The time it takes for the customer to see the refund depends on their bank, not on Square. Most banks process refunds within one to three business days. Some may take longer, especially if the refund is issued on a weekend or holiday. If a customer says they haven't received a refund after five business days, they should contact their bank to check the status.
Partial refunds and when to use them
A partial refund is when you refund only part of a transaction amount. Use this when a customer paid for multiple items but is returning only some of them, or when you're adjusting the price after the sale. For example, if a customer paid $50 for three items and is returning one worth $15, you would issue a $15 partial refund.
To issue a partial refund, follow the same steps as a full refund, but change the amount in the refund box before confirming. Square will refund only that amount and keep the rest of the transaction in your account. The customer receives the partial refund on their original payment method.
Refunds for transactions you cannot find
If you cannot find a transaction in your Square history, it may not have processed successfully in the first place. Transactions that failed to go through do not appear in your transaction list and cannot be refunded — the customer was never charged. If a customer says they were charged but you cannot find the transaction, ask them to check their bank or card statement to confirm the charge actually posted.
If the charge does appear on their statement but not in your Square account, contact Square support with the transaction date and amount. Square can help you locate it or investigate whether there was a processing error. Keep the customer's name and the amount handy when you reach out.
Disputing or reversing a refund you issued by mistake
If you issued a refund by mistake, you cannot undo it directly through the app. However, you can issue a new charge to the customer for the same amount — essentially asking them to pay again. This is different from reversing the refund; you're creating a separate transaction.
Before doing this, contact the customer and explain what happened. Many customers will understand a genuine mistake and will resubmit payment. If the customer refuses or if you need help with a disputed refund, contact Square support with the transaction ID and details of what went wrong. Square keeps records of all refunds and can help you investigate.
Frequently Asked Questions
How long does a Square refund take?
Square processes the refund when ready on your end, but it takes one to three business days for the customer's bank to post it to their account. Weekends and holidays can add time. If more than five business days have passed, the customer should contact their bank.
Can I refund a transaction that happened weeks ago?
Yes. Square stores your transaction history, so you can search for and refund transactions from months back. The refund still goes to the customer's original payment method and takes the same one to three business days to process.
What if the customer paid in cash?
Square cannot refund cash transactions through the app because there is no payment method to refund to. You would handle a cash refund the same way you would in any business — by handing the customer cash from your register.
Can I issue a refund if the customer is not present?
Yes. You do not need the customer to be there to issue a refund. You can refund any transaction in your history from the app or computer at any time. The refund goes to their original payment method automatically.
What if a customer disputes the refund after I issue it?
Square keeps a record of every refund you issue, including the date and amount. If a customer claims they never received a refund, you can show them the record in your Square account. If the refund genuinely did not reach them after five business days, they should contact their bank to investigate.