How do I do cash back using a credit card? Example: sale is $20, and customer wants $10 cash back.

[Beastiehaven]

I have many customers that ask for cash back on a credit purchase. How do I do that so it shows properly in sales reports? 

[Adamscottsmith]

So the best way to do this, would be to create a variable priced item called cash back and then select that, enter the amount the customer wants back and then complete the transaction. Id recommend adding a fee for such service like a ATM but that is personally your call. Then you’d do a cash paid out for cash back. It would be tedious. 

[Beastiehaven]

I don't see a "cash paid out" option in my POS. Where do I find it? 

[Adamscottsmith]

Cash paid outs are under the drawer management. It’s on the same screen you would go to when closing the drawer. If you are using the retail side it’s under the bar graph on the left. Just under description. Like i said it would be tedious, as we had to do something similar with lottery until we were able yo discontinue it. 

i assume you are using the retail version? 

[Beastiehaven]

I am using the app on Android, and don't see a cash back option when processing a credit card payment.

[Adamscottsmith]

Ah, do you have a cash drawer set up to it? Or cash management on? I use the retail version and I have come to learn there are many differences. 

but it would not be a CASH BACK but rather a PAID OUT. From the drawer management screen. Maybe @MayaP @Sean or @isabelle  have any thoughts? 

[Arie · Accepted solution]

Hi @Beastiehaven,

Thanks for writing in - welcome to the community, I noticed this is the first thread you've started here! Also appreciate @Adamscottsmith stepping in with some potential workarounds. 

Cashback transactions or cashouts are not currently supported by Square, and would be in violation of our Terms of Service. The cash drawer features are available for the float cash amount in your till; you can learn more about them here. 

[Beastiehaven]

Thank you for your answer, Arie. I will check out the option you mentioned. 

[Adamscottsmith]

So to piggy back on @Arie comment, we did have special permission when we first moved to square to be able to transactions like this without being flagged. So that would be a recommendation is to get that approval first. 

we were allowed due to state lottery laws and requirements that we were bound to until the end of last year. Once we discontinued lottery when our agreement was done, we have never had a reason to do cash back. 

there are atm companies that will put an atm in your location and completely manage it and then you earn a % of the fee charged to the customer as a commission. Id look into that.