Square merchant services screwing small businesses

In the past, Square as well as PayPal used to refund the transaction fee when you refunded the customer but PayPal changed their policy in 2019. See: PayPal reinstates controversial policy of pocketing fees from refunds

 

Now Square decided to do the same thing, in an email they state: Processing fees will no longer be refunded to your account when you offer full or partial refunds to your customers. This policy changes goes into effect June 6.

 

See video: 6 days left to dump Square merchant services before they begin screwing small businesses.

 

How is this a good thing for small businesses?

 

I feel Square should reverse this.

715 Views
Message 1 of 2
Report
1 REPLY 1
Square Champion

@spearson0thanks for your post. I'm sorry you're frustrated with this change in policy. There have been previous discussions regarding this change, you may view that conversation here. Of course, small business owners (myself included) would like to minimize operating expenses as much as possible. From my personal experience, Square has been nothing but amazing and helpful in starting and growing my business; I can't image working with another company in everything they can offer me and my business. I'm sure there are alternatives, and thanks to an open market economy, we're able to shop around and work with whatever vendors we choose to do business with.

 

You'll see in the previous discussion some valid points on both sides. I'd just encourage any business to remember that credit card processing fees are deductible from your profit as an expense, thereby reducing your total tax liabilities. I know it's still frustrating to feel that you're not getting back fees, please remember that even though a customer returned an item to a business, the credit card processing company (either Square, PayPal, etc.) incurs costs by "moving" that money around between accounts, and therefore is the reason those fees are not being refunded at this point.

 

Good luck to you, and please join in more conversations in the Square Seller Community. We're all business owners trying to do our best, using the tools we can find to help us do that.

652 Views
Message 2 of 2
Report