refunds and transaction fee

[barbarabrown]

I have a customer requesting a refund for a large purchase.  It has already cleared and posted to my account.  If I refund her, is the transaction fee charged to me anyway?

[AshleyK]

Hey @barbarabrown and welcome to the Seller Community! Since Square covers the processing fee in the case of a refund, your customer still receives the total amount they paid at no additional cost to you.

Here’s an example:

1. You accept a $100.00 payment by dipping your customer’s card.
2. Square deducts the 2.6% + 10¢ fee for the payment and transfers $97.30 to your linked bank account, or leaves it in your balance if you haven't initiated a transfer yet.
3. You issue a refund for the $100.00 payment to your customer, so we debit the $97.25 transferred to you.
4. Square covers the 2.6% + 10¢ fee paid after the original transaction and refunds your customer $100.00.

I hope this helps!