What can I do to prevent chargebacks/disputes?

[laughsalotwoman]

The title of this thread has been updated from: "what can I do to prevent charge disputes? an I able to add a line to include driver license # ?"

I've been hearing a lot about charge disputes in my area. Am I able to add a line where I can put a driver license number to prove I checked?

[puka · Accepted solution]

Hey @laughsalotwoman 👋🏼

Great question! I highly recommend reading through our Best Practices for Accepting Payments. Following these practices should help reduce your chances of receiving a chargeback.

Let us know if you have any further questions!

[ATKM]

We have had 3 transaction disputes so far this year. Which is up from 0 last year. Nothing too serious, the three of them were not necessarily large transactions. But one, in particular, we find disturbing. We had a lady order over the phone for pickup, a $33 BBQ order, she came in, paid for it with her card and left. She was in our store I think it was a total of 40seconds. She then files a bank dispute a week later saying that she has no recollection of the transaction. We were scammed.

We send the bank video surveillance footage of the cardholder in the store, noting on the dispute that the lady in the footage matches a Facebook profile with the same name as the name on the credit card. It was this lady. There is no doubt. She is on Facebook, she lives in the area, she stopped by our store and paid for a meal with a card with her name on it and the bank sides with her and refunds her money.

Does anyone else have any experience with this? Is there any way to protect your business from such a scam if even video surveillance doesn't help? We aren't worried about this transaction but it is fairly easy to ring up a $300 order at our bar, and if video footage won't save us what will?

[Minion]

Is there a way that you can file a complaint with that bank by chance, maybe the head of the branch of some sort?  Honestly, that is pretty insane to hear.  If it were me, I think I would be emailing, faxing, and calling someone to overturn that transaction. It's not the amount of that particular transaction, but the principal of it. The fact that with all that proof and it's still not in your favor is sickening.  People wonder why small business crumbles and or have certain procedures set in place, from people like said lady (who I assume and hope is now banned from your establishment) . Hope you get some results 

[Themirroredsoul]

Hello,

I received an order Friday from another country after speaking with the client and saying I do not ship outside the US. The client then sent an order shipping to an address in the US. I contacted the client and refunded the order. Today I received the same order from someone in another state. I contacted the client by phone to verify the information and see who answered the phone. The Client said the client ordered the item for an uncle in the country stated previously and would visit him in December. When I asked about signatures on delivery, she said she works all day and would not be able to sign. I ship USPS usually. Any suggestions? Do you think this is a scam and possible chargeback? Am I being too cautious? I am pretty new to selling online and just wanted a more experienced person's viewpoint.

[Themirroredsoul]

To add to the thread, should I ask for ID?

[_Violet]

Hi @Themirroredsoul  - Thanks for reaching out to us here on the Square Seller Community👋

I went ahead and merged your post to an existing thread where other Square Sellers have discussed similar topics. We merge duplicate conversations together to keep like comments in one place, and to make it easier for others to find the thread in the future. 

Please see the reply from one of our Community Moderators, @puka, which has been marked as the Best Answer to this question ✅

I hope this information is helpful but please do let me know if you have any additional questions.