Scam. Am I responsible for refund when I never received any money?

[BGB2025]

I run a business offering interior and exterior remodeling. I had a woman reach out to me via email to have her roof replaced. It’s not out of the norm for me to pull measurements of a roof and prepare an estimate without meeting the homeowners. Sometimes people have 2nd homes, Air B&B’s, or just know what they want and they decide on their contractor after receiving several quotes. 

I sent the estimate and she signed my contract immediately via docusign. Doesn’t happen often but still nothing out of the normal. She asks how I’d like to process the deposit, I told her cash/check/card(square) .. she said she had no problem doing the credit card, so I sent a payment link and she paid no problem. 

Square immediately flagged the payment and started investigating. I figured well, too good to be true.. well long story short it was a scam. This person used a J Crew Corporate credit card to pay the invoice. But, now I’m getting emails from square asking if I would like to refund them but there’s no balance from that payment. My account balance is actually negative due to the processing fees that were paid on the invoice. 

I never received any money. Never even had a balance to transfer. Am I somehow responsible to now refund the bank this money…