Solved: eGift Card problem: How do I clear the balance?

LSPA · ‎09-28-2018

The title of this thread has been edited from the original: eGift Card problem

We are thinking about migrating to eGift card, but I think there is problem how it is working now.:

1) I bought a $1.00 eGift card using credit card

2) Then, I cancelled the eGift transaction -- refund $1.00 to the credit card

3) Later, I did a $1.00 charge and used this eGift card to pay for the transaction.

I was expecting an error msg that eGift balance is "zero". But, apparently the transaction went through! This is a serious problem -- if someone forgets to "manually" clear the eGift card -- folks can double their money by cancelling the credit card sale and later using the same eGift card for redemption. Any ideas?

pessosices · ‎09-28-2018

I understand - and I definitely agree that there should be an automatic Prompt when refunding a Gift Card to give the option to clear the balance immediately.

I also have around 20 employees, mostly younger folks, and in my 2+ years of using the Square Gift Cards, I very rarely have had any customers requesting refunds for Gift Cards, if at all.

But I have put a few safeguards in place, just in case it happens:

I have taught my employees that they have to clear the balance in the event of a refund.

I limit which of my employees can give refunds, through the Employee Management system, so only 1 person on shift (a Leader or Manager) can give a refund, so all refunds must go through that person who typically actually remembers the rules for refunds.

I set up email Notifications for Credit Card Refunds which I check everyday - if there is a refund for a Gift Card, I can go into my dashboard and make sure that the balance has been cleared.

Hope this helps!

Pesso - he/him
Pesso's Ices & Ice Cream
Square Super Seller - I'm here to help!

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pessosices · ‎09-28-2018

@LSPA

Correct, as it stands now with eGift Cards as well as Plastic Gift Cards, when you refund the transaction the balance remains on the card. You would have to manually clear the balance of the card after a refund.

If someone forgets to do this in the moment, it is very easy to clear the balance through your dashboard later with just a couple of clicks.

Yes, ideally a Gift Card refund would automatically give a prompt to clear the balance - that is a great Feature Request!

Theoretically someone can purchase a Gift Card (eGift or plastic) and contact their credit card company to refute the charge - however, a customer can do this with any credit card purchase, and needs to go through the Dispute Process and win.

If this happens, you will be notified that a customer has done this, and you can go in and manually clear the balance of the card.

But as I said, a customer can dispute a purchase of any credit card purchase, not just Gift Cards.

I have been using Plastic Gift Cards and eGift Cards for a couple of years now, and have not really run into any of these issues.

If I need to refund a Gift Card Sale, I clear the Balance in my dashboard in just a couple of clicks. It's very easy, and the benefits by far outweigh this.

Hope this helps clear some things up and hopefully calm any fears of this.

Pesso

Pesso - he/him
Pesso's Ices & Ice Cream
Square Super Seller - I'm here to help!

LSPA · ‎09-28-2018

Thanks! I'm concerned about Sales person (10+ staff) refunding the credit card for gift card sale, but forgetting to clear the gift card.

Square should consider coming up with a solution.

pessosices · ‎09-28-2018

I understand - and I definitely agree that there should be an automatic Prompt when refunding a Gift Card to give the option to clear the balance immediately.

I also have around 20 employees, mostly younger folks, and in my 2+ years of using the Square Gift Cards, I very rarely have had any customers requesting refunds for Gift Cards, if at all.

But I have put a few safeguards in place, just in case it happens:

I have taught my employees that they have to clear the balance in the event of a refund.

I limit which of my employees can give refunds, through the Employee Management system, so only 1 person on shift (a Leader or Manager) can give a refund, so all refunds must go through that person who typically actually remembers the rules for refunds.

I set up email Notifications for Credit Card Refunds which I check everyday - if there is a refund for a Gift Card, I can go into my dashboard and make sure that the balance has been cleared.

Hope this helps!

Pesso - he/him
Pesso's Ices & Ice Cream
Square Super Seller - I'm here to help!

LSPA · ‎09-28-2018

Thanks Pesso.