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Process a return or exchange with Square for Retail

Who is this article for?
  • Account owners or team members with the transactions permission to issue refunds and issue unlinked refunds. Set permissions in Square Dashboard.
  • Square for Retail Free, Plus and Premium subscribers.
  • Sellers with retail mode enabled in the Square Point of Sale app.
  • About returns and exchanges

    With Square for Retail, you can process a refund or an exchange through the Square Retail Point of Sale app on an itemised basis. If your customer finds something they would like instead, you can process the difference on the spot.

    Before you start

    You can refund or exchange transactions from the Square Retail Point of Sale app and on your Square Dashboard. You also have the option to issue a refund to a Square gift card or eGift card. 

    When you process an exchange, the basket total will either be positive, negative or even depending on the price of the replacement item.

    • If the new item is more, you can collect payment with any of the standard payment methods.

    • If the replacement item is the same price as the returned item, you can process an even exchange.

    Processing an exchange may have the following effects on your reporting.

    • Exchanges won’t reflect on your Square Transfer Summary or on accounting software like Xero.

    • 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 debit the remaining amount from your linked bank account.

    You have three options to issue a refund or process an exchange from your Retail POS.

    Process a return or exchange for a previous transaction

    From the Square Point of Sale app with retail mode enabled or from the Square Retail Point of Sale app:

    Option 1: Transactions

    1. Open your point of sale app, then tap Transactions.
    2. Locate the original transaction by either swiping your customer’s card or searching for 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.

    Option 2: Customers

    1. Open your point of sale app, tap Customers.
    2. Find your customer by searching for their name.
    3. Scroll down to Transactions > tap the transaction to bring up the details page.
    4. Select Return or Exchange.
    5. Select item(s) to restock or Skip this step > tap Next.
    6. Tap Refund or add additional items to update your cart and proceed through the checkout flow.

    Option 3: Transactions gift card

    1. Open your point of sale app, then tap Transactions.
    2. Search the receipt number or full debit/credit card number to find the transaction.
    3. Tap the transaction you wish 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.

    Learn how to Set up and order gift cards.

    Process a refund for a previous transaction

    You can only refund transactions from the Square Dashboard – exchanges cannot be processed from the Dashboard.

    Square Dashboard

    1. Sign in to your Square Dashboard and go to Orders & payments (or Invoices & Payments or Payments) > Orders > Transactions.

    2. Click on the payment you’d like to refund, then click (•••) > Issue Refund.

    3. Choose to:

    • Refund items: Select items to refund, then click Refund items.

    • Refund amount: Enter the amount you’d like to refund and the reason you’re refunding the payment, then click Issue Refund.

    View refunds and exchanges

    Square Dashboard

    1. Sign in to your Square Dashboard and go to Orders & payments (or Invoices & Payments or Payments) > Orders > Transactions.
    2. Click the All Types drop-down menu and click Refunds or Exchanges.
    3. Apply additional filters as needed.
    4. Click the transaction to view the refund reason, amount, date, time, and cashier who processed the refund.

    Point of sale app

    Refunded transactions will have a yellow (←) on the transaction. To view from your point of sale app:

    1. Tap Transactions.
    2. Locate the refund you’re interested in seeing transaction details for.
    3. You can view the refund reason, amount, date, time, and cashier who processed the refund.

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