Square Online Store is Vulnerable to Fraudulent Charges

[Khalid88]

Be aware of using Square online store. Square does not protect merchants when there is fraudulent charges. I was held responsible by Square to pay close to $500. Because the consumer disputed charges as unauthorized. Even though, the consumer placed an order on my Square online store and the product was delivered to his house. We have been with Square for over 7 years and we use them for processing, payroll, online store, and loans. If Square doesn’t step in and do the right thing, it’s time to give my business to another merchant service.

[JJ_]

I am sorry to hear about this situation @Khalid88.

While we do have a team that assists with disputes challenges (more on that process here), your customer's bank is the one that determines the validity of the dispute and has the last word in the process. 

We always perform security checks on transactions when processing them. I see that you are enrolled in our Risk Manager service, you might want to reach out to our support team for them to assist in making sure that you are taking advantage of the tool to its maximum capacity to hopefully avoid situations like these in the future.

Also wanted to say welcome to the Seller Community.

[Khalid88 · Accepted solution]

I reached out to the dispute team and scheduled a phone call for this morning. Unfortunately, no one called me.

[JJ_]

It must have been a misunderstanding or confusion because the Disputes team is not working due to the holiday weekend. They will be back on Monday. Let us know if you don't receive a call by that day so we can get this escalated.

[Khalid88]

Sorry to hear that. In my case they five different transactions all from the same customer who ordered food from our online Square store and delivered the food to his address and still we lost the challenge 

[danuhof]

We had the same thing at a farmers market, the customer purchased and walked away with the product and then disputed the charge and we were given no support or option. Square automatically refunded the money and we were out the money and product. 

[JJ_]

Sorry for your situation as well. In your case @danuhof if this issue becomes more common you will want to make sure to process cards using the Bank's suggested secured method (EMV/Chip). Disputed swiped payments are no longer possible to challenge as banks shifted the liability to merchants. Here is more information on the EMV liability shift.

[Khalid88]

We’ll, this transaction was made as key in card using our online store. Can’t use card reader in that case.

[JJ_]

@Khalid88 my appologies for the confusion here, my response in regards to the card reader was related to @danyhof's case. In your case, Risk Manager would be the best solution to avoid these situations with online transactions in the future.

[Khalid88]

what is the best setting in Risk manager that can help win a dispute in the future?

[JJ_]

While Risk Manager is not a tool to help you win Disputes our Support team may be able to help you set it up so you avoid future fraudulent charges as the tool is able to watch and identify trends that could cause loss to your business. When you get a moment I suggest calling in so our Support team helps you take advantage of the tool @Khalid88