Hey there @JD-Electronics. First, sorry about your bad string of luck there. However, I need to correct your misperception, here. You did not lose because you used payment links. You lost because federal regulations currently give total control to the card-issuing bank to decide on disputes. That’s like letting the fox loose in the hen house! Square (nor any processor like them) can only provide the evidence, but they have to live with the decision that your customer’s bank makes. It’s insane, but it is true. Now….
Payment links are no riskier than having an online store. Anyone who sells online should be fully aware of this risk. Online payment fraud is rampant and will only get worse. Square does have some tools to help, however. It is called Risk Manager, and is found on our web dashboards at Payments > Risk Manager.
One of the best Risk Manager tools is called 3D Secuere. You can use it to request that the card-issuing bank do a more thorough verification that a customer is authorized to use the card they are using. If you set it up correctly, you get stronger guarantees in the event of a dispute. Some of these are:
If you have a 3D Secure rule enabled and a payment does not invoke it due to a service outage, system failure, or if a qualifying customer’s card-issuing bank does not have 3D Secure enabled, Square will cover the dispute, also known as a chargeback.
If you have a 3D Secure rule enabled and a payment goes through because the issuing bank verified it, you are not responsible for covering a fraud chargeback (but may be responsible for other types of disputes).
If the customer is unable to verify that they are the rightful cardholder, then they will not be able to complete the transaction. However, if the customer verifies that it really is them and that the payment is not fraudulent, then they can complete the transaction. If the transaction is completed and authorized through 3D Secure, the liability for fraud chargebacks then shifts from the seller to the card-issuing bank.
I’d recommend reading through the help documentation in the links I provided, as well as watching the videos. It will be well worth your time.
Let me know if you have any other questions.
Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)
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