thread Re: refunds fees in Payments Troubleshooting

refunds fees

LOG — Sun, 21 Sep 2025 11:09:01 GMT

pretty sure I saw a message pop up on square saying they were not going to refund processing fees on refunds from a certain date, is this true I can not see the message any more.

UK user here.

Re: refunds fees

k_atie — Tue, 21 Mar 2023 16:17:02 GMT

Hey @LOG, thanks for your post. Would be happy to provide you with some clarity here.

Yes, we have a new Refund Policy being set in place as of May 2nd, 2023. You can read more about this on this post from Tra, our community moderator.

Let me know if you have any questions, I'd be happy to help.

Re: refunds fees

LOG — Wed, 22 Mar 2023 09:56:04 GMT

thanks for this, Square should give this greater communication a I struggled to find it and its an important change.

As the OP suggests I now have to change my terms and conditions but also reconsider my business model.

I can understand why you have done this (probably the growth in returns in fast fashion) , trouble is I have some big orders on which I allow cancellations. So the order I took at the weekend for £7k would have a £175 cost if the customer cancelled.

I can understand paying some kind of admin fee but the whole cost is unreasonable. Only 64% of your fees go to 3rd parties, the rest is for Square.

I use invoicing, terminal, virtual and reader in my business and intergrate Square with Xero. All my big payments goes through invoicing.

I had recently worked out that if I connect Xero to Stripe I can save 1% on your fees, this simple saving would cover my annual Xero fees and more. Forcing a 2.5% fee on refunds has just made that change more desirable.

Re: refunds fees

k_atie — Wed, 22 Mar 2023 13:09:29 GMT

I can totally understand your perspective here @LOG. Any feedback regarding any aspect of our services is valued, so I'll pass this feedback on to the relevant team.

Let me know if you have any further questions, I'd be happy to help.