CHARGEBACK/DISPUTE

[BESC2]

I wanted to share my thoughts regarding chargeback and dispute cases within the Square community, hoping to advocate for other business owners who’ve likely had similar experiences. As a member of this community, I feel that Square doesn’t provide enough support when it comes to handling chargebacks and disputes. While Square does assist with submitting and challenging these cases, it doesn’t push hard enough from the seller’s perspective. This often leaves us vulnerable, with outcomes that tend to favor customers who may take advantage of the chargeback process.

Providing receipts and proof of purchased items seems to make little difference, as banks often disregard this evidence without offering any clear explanation. We have no options to pursue the matter further, leaving us at a total disadvantage. Business is not just about selling. I believe it’s about providing services and products that enhance daily efficiency and affordability, especially in being part of a community.

[Summer2024 · Accepted solution]

Hey, @BESC2 ! 

I hear you. I can understand it is frustrating on the Seller's end when it seems like Square isn't doing enough to fight for their Sellers. However, I do want to tell you, that there is an entire team dedicated to fighting and providing the evidence. Unfortunately, we just don't get the final say. It sucks. But, due to rules and regulations, once a dispute is decided by the cardholder's bank, there isn't anything else we can do. 

I am hoping that financial regulations regarding this could change in the future. But right now, we really are doing what we can. 

[BESC2]

I understand that Square is doing its best to assist with disputes. I’m hoping we can take further action on the chargeback side. That said, it’s becoming increasingly discouraging to challenge them, since the results almost always seem to favor the cardholder regardless of the circumstances.

[jjf1113]

Got an AMEX chargeback dispute from a Square payment I received for video production services I provided. I have contract, correspondence, proof of work, etc., so I'm utterly shocked. This just happened this AM so I reached out to client to see if it's just a mix up.

If client is trying to be devious, how would you rate my chances?

[MudFire_Dex]

Used to be a signed contract and correspondence was enough but we've lost a few. Fingers crossed they seem to only be happening on low-dollar deposits and less on people who spent months in the studio making work then did a chargeback for membership fees. Luckily chargebacks are rare and most people are honest.

Reaching out to the customer is a good idea - my wife actually accidentally clicked a transaction reporting several in a row that were fraud and we reached out to the vendor to ask for an invoice to repay that transaction to them after it was decided in our favor.

[jjf1113]

Thank you for that input. Sounds like you do quite a bit of sales. Mine are higher ticket so far less frequent. Never had this happen with Square before, only Upwork, and I lost. 

Are you saying for larger ticket items they take a better look at them?

[MudFire_Dex]

We do have daily transactions yes, there is a portal to upload your evidence, but even with signed documents and correspondence attached we have had a few losses. Again - with daily transactions and our monthly membership holders it has never been a pain point for us. But I can see in the case of something like high-dollar video this would be upsetting. I would think the higher dollar amount would warrant more investigation not just by Square but by the cardholder's bank. They don't want to be part of fraud. It is really the cardholder's bank you are fighting with. 

I would think you'd win the dispute with the evidence you are describing.

[jjf1113]

Appreciate you so much. Can I support your business in any way? Review? Purchase? Let me know. You deserve it for all the help/insight you've provided. Cheers.