Insufficient funds in account for a refund will it still process

[thebattersboxst]

I am wondering if someone can help me I am a new business and just got 3 returns in a row but don't have the funds to cover it at this very sec in my linked account will my bank cover it or does square cover it till there are funds in there . I don't want to have to tell my customers I can't pay them back it's embarrassing. Please help 

[ryanwanner]

Square will automatically pull funds from the account. How my bank works in times like these is that if your account is negative it will just go that much further in the hole. My bank then will give you the banking day to fix it, but if it’s not fixed by the end of the day they’ll throw NSF fees on top of the amount and return items as necessary to make the account positive. 

Im not sure what will happen if Square gets a refund amount returned to it, thankfully I haven’t been that deep in where I couldn’t support the negative somehow. 

Its a dirty (and some would argue ethically wrong) trick to play, but one thing hopefully you can do: let the refund hit your account, generate enough in cc sales in the day to cover the negative, press the Instant Deposit button as soon as you do, eat the extra 1% fee (which is usually lower than the NSF fees), and live to fight another day. 

The absoolute toughest thing to manage in small business is cash flow. I definitely feel your pain. I’ve been at this 11 years now, and it still finds a way to bite me in the rear regularly. Hang in there, and as long as you keep your wits about you, there should be a light at the end of the tunnel.