To do a custom refund on Square, you need to access the transaction in your Square Point of Sale app and choose to refund either specific items or a particular amount, rather than the entire sale. This flexibility allows businesses to handle various customer service scenarios efficiently.
How to Perform a Custom Refund on Square
Performing a custom refund through your Square Point of Sale app is a straightforward process, enabling you to adjust the refund amount precisely to the situation.
Step-by-Step Guide to Initiating a Custom Refund
Follow these steps directly within your Square Point of Sale application to process a partial or item-specific refund:
- Sign in to Your Square Point of Sale App: Open the Square Point of Sale application on your device and log in to your account.
- Access Transactions: From the main menu, tap on Transactions. This will display a list of all your processed sales.
- Select the Payment: Browse through your transaction history and tap on the specific payment you wish to refund.
- Tap "Issue Refund": Once you've selected the correct transaction, locate and tap the Issue Refund option.
- Choose Your Custom Refund Method: This is where you define the "custom" aspect of your refund:
- Refund Specific Items: If the customer is returning only a few items from a larger purchase, deselect the items they are keeping and ensure only the items being refunded are checked. You can also adjust the quantity of an item if only part of a multiple-item purchase is being returned (e.g., if they bought 3 shirts and are returning 1, adjust the quantity to 1).
- Refund a Specific Amount: If you need to refund a partial dollar amount (e.g., for a discount correction, a service adjustment, or a damaged item that isn't fully returned), tap Amount. You will then be prompted to enter the exact dollar value you wish to refund.
- Tap "Next": After specifying the items or amount, tap Next to proceed.
- Confirm Details: Review the refund details, including the total amount and the items (if applicable). You may also be prompted to select a reason for the refund (e.g., "Customer Return," "Service Adjustment").
- Complete Refund: Confirm the refund to process it. The funds will be returned to the customer's original payment method.
Understanding Custom Refund Options
Square offers two primary ways to customize a refund, catering to different business needs:
| Refund Type | Description | When to Use It |
|---|---|---|
| Partial Item Refund | This allows you to select only certain items from a multi-item transaction to refund. You can also adjust quantities for individual items. | When a customer returns only a portion of the goods purchased, or there's an issue with specific products in a larger order. |
| Partial Amount Refund | With this option, you manually enter a specific dollar amount to refund, which can be less than the original sale total. | For service adjustments, goodwill refunds, correcting a pricing error, or when the return value doesn't perfectly align with specific items. |
Practical Considerations for Custom Refunds
- Refund Processing Time: Refunds typically take 2-7 business days to appear on a customer's statement, though it can vary by the customer's bank.
- Inventory Management: When you process an itemized refund, Square automatically adjusts your inventory levels, ensuring your stock count remains accurate.
- Customer Communication: Always communicate clearly with your customer about the refund amount, the items being refunded, and when they can expect to see the credit on their statement.
- Refund Limits: Keep in mind that you can only refund up to the original amount of the sale.
- Transaction History: All refunds, including custom ones, are recorded in your Square Dashboard under the Transactions tab, providing a clear audit trail. You can also view details of any past refund by selecting the transaction.
For more detailed information on Square's refund policies and how to manage them, you can refer to Square's official support resources such as How to Process Refunds and Returns and Square Refund Policies.
