Recent influx of credit card disputes for online eGift card sales

[DragonMassage]

Our business has been open of over five-and-a-half years and we have not had a single disputed credit card transaction until recently. Now, we have had a total of NINE disputes in the last few weeks and every one of them has been for a $50 eGift card purchased online.

Now, I have no problem refunding the charge and zeroing out the eGift card balance. What concerns me is the volume of them just recently and when I asked a representative from Square what is going on, all they do is recite back to me the definition or reason a dispute happens but are unable or unwilling to dig any deeper to know if there was a data breach with Square or some other possible root cause for these disputes. Another concern I have is, how many of the other $50 eGift card purchases online in the last few weeks or so are valid sales and what about the people that just never notice the charge on their statement to dispute them.

Has anyone else seen their disputes from online eGift card sales spike recently, or is it just us?

[VanKalkerFarms · Accepted solution]

I have not seen it, but I have heard of this issue just in general not even related to Square.  They will get stolen cards and run them online to see if they are good or not. IDK if Square records the IP address at purchase, but that can easily change with every card attempt.