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Issue refunds to gift cards

Who is this article for?
Sellers with the customers permission to issue gift cards refunds. Set permissions in the Square Dashboard.

About issuing a refund to a gift card

When a gift card is used for a purchase, it acts as a payment method. Refunding the amount back to the gift card ensures that the funds are returned to the original source of payment.

Before you begin

A refund can be issued to a physical gift card in Square Dashboard and the Square POS app. You can issue a refund to an eGift card from compatible iOS and Android devices in Square POS app, Square for Retail POS app, or Square Appointments POS app.

Square Gift Cards have a $2,000 load limit. You cannot refund more than $2,000 to a gift card, including the existing balance on the card. Additionally, gift cards are not available for refunding split-tender transactions or Square Invoices.

Currently, refunds show up in the Transfers Report in Square Dashboard and in the Square POS app. Since refunds to gift cards do not move money between you and your customer, any refund made to gift cards will not show up on the report.

When refunding a payment used to purchase a gift card, be sure to also clear the balance of the physical gift card from the app.

Issue a refund to a physical gift card

Square Dashboard

  1. Sign in to Square Dashboard, then click Payments > Gift Cards.
  2. Under Overview, click the transaction in question or type the gift card number in the search bar.
  3. Under Receipt, click View.
  4. A new tab will open with the transaction.
  5. Click ••• next to Send Receipt.
  6. Click Issue refund.

Square POS app

  1. Tap Transactions on the navigation menu.
  2. Search the receipt number or the credit card number to find the transaction.
  3. Tap the transaction you want to refund and select Issue refund.
  4. Select the items or the amount you want to refund and tap Next.
  5. Tap Gift card, select a reason for the refund, and tap Continue.
  6. Tap Add gift card. You can then swipe the gift card, take a photo of the gift card QR or barcode with your device’s camera, scan the gift card barcode with a barcode scanner, or manually enter the gift card number.
  7. Tap Refund.

Issue a refund to an eGift card 

  1. Tap Transactions on the navigation menu.

  2. Enter the receipt number or the card number in the search bar to find the transaction.

  3. Tap the transaction you want to refund and select Issue refund.

  4. Select the items or the amount you want to refund and tap Next

  5. Tap Gift card, select a reason for the refund, and tap Continue.

  6. Enter the customer's email address in the box. This will autofill if you have already added your customer's email to their profile in your Customer Directory. On the customer-facing screen, your customer can edit the email address or enter in a new email.

  7. Tap Refund

After you issue a refund to an eGift card from your point of sale, your customer will receive an email with their eGift card that they can use for store credit the next time they shop with you. You may also pull up the customer during their next sale and charge their gift card on file.

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