Dispute over an eGift card purchase

[RNTherapeutics]

I own a day spa / med spa and use Square POS and have both plastic gift cards as well as digital eGift Cards. Never have I had an issue with either before. Until today. Today I received an email notice from Square of a dispute on a charge to credit/debit card. After researching the dispute I discovered that someone purchased an eGift card this past December, then on Feb 18th filed a dispute with their bank over the charges. There was no name provided, just that there was a dispute of charges and that the reason stated for the dispute was well I thought a little vague: customer claimed they were owed credit. I found the transaction and was baffled. The eGift card is in our system, still unused. The person who purchased the online eGift card, as well as the person it was sent to, have very similar names (off by a few letters) have never contacted us with concerns regarding the purchase, have never visited our day spa, never received services, and has never once done business with us other than the one-time eGift Card purchase, and the eGift card has still not been redeemed. My receipt clearly states on it that all sales are final. And one was issued to the purchaser when the transaction occurred. I responded to the notice with all attached copies of the transaction & receipt, name & emails of both purchaser and recipient with my detailed explanation (that it was an online digital eGift Card purchase that had yet to be redeemed etc). So now I wait to see what the bank decides to do. But I have so many questions..... I've been in business 11 years and have never had this happen. Has anybody else had this happen? I mean if a person legit wanted a refund for an online eGift Card (or for any type of purchase for that matter) wouldn't they first try to contact the business? Are eGift cards even refundable? Am I dealing with a scammer? Nowadays fraud seems to be so rampant. Does my All Sales are Final even protect me? So many questions.....I'm simply baffled. Thanks for any input you may be able offer. Hopefully this will be resolved in my favor. ??? UGH.    

[HC_Charlie]

Hello @RNTherapeutics since the buyer and recipient names are so similiar, and you have no personal experience with these customers, I would tend to think it was potential fraud. The buyer may have used a stolen credit card (can you find out who the credit card name is listed), and is trying to get "money out of the card" buy getting money back...but that really doesn't make sense because the credit would go back to the original stolen card. ???

I don't have personal experience with Square charge backs, so I'm not sure of the process, but hopefully they will keep you in the loop as this is investigated. I hope you get a favorable resolution, it's really discouraging to work so hard in your business and then have to deal with situations such as this.

[SynergyOC]

Yes just had the same thing happen in my Square account, now twice.  Im disputing the charges as we never sell e-gift cards.  I did however go into my account and turn off the online and e-gift card options now so they cannot access this portion again.  I did change my password and everything but still a new one popped up today.  I am hoping Square will see that this is a grad problem THEY have within their system.