Hello, I am a bike shop and I have been using Square for over four years ($29k in transaction fees so far) without an issue taking manual credit card payments. Yesterday I sold a bike to a college student, and their father paid for it by phone. The first card the dad tried to use was an AMEX, and the system declined for some reason. He then used his Visa (same zip codes for both cards, and the Daughter's ID) and the payment cleared immediately. Later I get an email that Square was going to review the transaction to decide if they wanted to pay because of "possible fraud"! They forced me to respond to literally 20 questions, and I had to fabricate an "invoice" that reiterated everything that was on the receipt. In my four years I have never had a fake transaction charged at my shop. The goods left with the customer, and if a legitimate charge is declined, I have no way of getting the bike back. I would have to file a police report for the insurance purposes, and if the customer paid in good faith, who do I say robbed me? After a sleepless night, my formerly sterling opinion of Square has taken a huge hit. Has anyone else gone through this? How did it turn out?
