Customer erroneously seeing a tax charge on their statements

[Rulon-Miller]

We are running into a reoccurring issue where customers who are tax-exempt organizations are coming to us and saying that their statements show tax charged on purchases from us. We are not actually charging tax on their purchases, but their statements are parsing out a portion of a single sales item and marking it as tax.

Because they are tax-exempt orgs the customer is then obligated to demand a refund from us. This problem has only happened to us twice, but both times it has caused significant trouble and required us to find a different payment method for the purchase. 

I talked to Square help and they said that there was no reason the payments should have been read to have included tax. The customer is adamant that it is only Square where this problem happens (they say the issue is inconsistent but common for them). Does anyone know what is causing this? The first time we tried the charge we put the card in manually, and charged a flat total with no itemization. The second time we tried to invoice. Both resulted in the CC statement indicating a "tax."

[Valentina]

Hi there @Rulon-Miller 📚 - and welcome to the Community!

Hm, if our team confirmed that this customer is not being charged tax, it sounds like we're good on our end. Let's dig in here - when you say "their statements", do you mean some non-Square statement belonging to this customer?

Thanks in advance!

[Rulon-Miller]

The monthly statements they are getting from their credit card company for some reason break out taxed and non taxed amounts in columns, and a portion of our charge is going into the taxed column. It's Bank of America. I've suggested that they talk to their CC company, but they have insisted that it only happens with Square and that it isn't the CC company, and of course we can't talk to the company on their behalf, so I'm doing my best due diligence to absolutely exclude anything happening from square.

When this happened the first time I called you guys and you said the same thing, that they weren't charged tax, and everything on my end confirms this. So I don't know what possibly could be making the CC company take 60 out of 800 bucks and telling their customer it was tax. Not being privy to the way square communicates charges to the CC company I can't even spitball a guess.

[FAAErie]

I have a customer with this exact issue. Did you ever figure it out?

[Rulon-Miller]

No, I'm afraid not. We haven't had the issue come to our attention in some time, but when it did happen the customers ended up requesting a refund and paying us through a different method if I remember correctly.