Chargeback VS Return

[CANVIVA]

We've had a bunch of orders from an affiliate who somehow processed a bunch of orders with stolen cards.  We shipped product to the cardholder's address and now a bunch of chargebacks are being issued.  

We have tried reaching out to the buyers (by mail). Today a customer told me she had already filed a dispute with her credit card.  If I issue a return - today - will I avoid a chargeback? Or should we simply wait until a chargeback comes through so there is not a return on the card AND a chargeback? 

Another question while I am at it - we now require a phone number for orders. Does Square match the phone number to the credit card for verification and additional order security?    

[ashc]

Hey @CANVIVA. Welcome to the Community.

Really sorry to hear this happened to you. I would recommend refunding any charges that you're aware of being a part of this scam before they become chargebacks for the ones that haven't been charged back on yet to save on getting charged for the fees too.

I'm glad to hear you're taking steps to check your customer's identity too. That would have to be matched on your end. Phone numbers might not be the best way to check for fraud though. You can also ask for photo ID for purchases as well to make sure the name on the card and the ID match. That's usually the best way to know if it's a good purchase or not. Here's an article from our Support Center on best practices. 

[CANVIVA]

Thanks for the update @ashc .  If the customers has already filed a dispute with their card - a week ago - but we haven't seen the chargeback come through Square yet, is it too late for a return?  I guess we will take a risk and issue the return on this, with the hope that Square won't issue a chargeback on top of the refund to the cardholder when the dispute/chargeback comes through.   

Thanks!   

[ashc]

@CANVIVA I would try issuing a refund and see if it goes through!

Usually we know pretty quickly once it's been filed.