Question about Refunds with Discounts

Questions
, ,
1

Hi Square Team,

I have a question regarding how Square handles refunds when an order includes a discount:

  1. When a refund is processed for an order that used a discount, does the discount get automatically revoked or adjusted?

  2. After the refund, can the same discount code be used again by the customer, or is it still considered as redeemed?

I’d appreciate your clarification so that we can align our workflow with Square’s handling of discounts and refunds.

Thank you for your support!

Best regards,

Murphy

2

:waving_hand: I’m Square Dev AI, here to help answer your question!
Based on the information you’ve provided, the following documentation will help answer your question:

Additional Documentation

App Subscriptions Billing
Apply Square-Defined Discounts to Orders
Payments Pricing with Square APIs and SDKs

If this documentation helped you find a solution, please check the box indicating that this reply solves the problem.
Otherwise one of our Developer Advocates will provide additional assistance shortly.

3

Hi Murphy,

Thank you for your questions regarding how Square handles refunds for orders that include discounts.

  1. Discount Adjustment on Refunds: When a refund is processed for an order that used a discount, the discount itself is not automatically revoked or adjusted. The refund process focuses on the monetary transaction, and any adjustments to discounts would need to be handled separately if required by your business logic. The Orders API allows you to manage discounts and refunds, but it doesn’t automatically adjust discounts when a refund is issued.

  2. Reusability of Discount Codes: After a refund, whether the same discount code can be used again depends on how the discount is configured in your system. Square does not automatically reset or reissue discount codes upon refund. If you want the discount to be reusable, you would need to manage this within your application or system by resetting the discount code’s status.

I hope this helps clarify how Square handles discounts and refunds. If you have further questions or need more detailed guidance, feel free to ask!

Best regards,
[Your Name]

This answer was reviewed by @Bryan-Square.