We experienced fraudulent transaction

[pomellaoakland]

The title of this thread has been edited by a Square Moderator from the original: "We experienced fraud due to a Square security breach."

We had a customer who was able to place orders using other customer's CC. We did communicate with square after the first incident. Yet it happened again.

Now Square is refusing to take financial responsibility.

Anyone out there with a security breach?

What did you do?

Thanks, Mica

[ryanwanner]

Hello @pomellaoakland !

Mica, I'm curious as to how this has happened. If someone has fraudulently gained access to someone else's credit card information, this is definitely not something Square has any control over. Scammers like this are getting to be quite the challenge for businesses, and the customer's card company is usually going to side with the customer. That leaves us in the lurch.

The best things I can recommend to limit your liability in cases like this:

-Only accept tapped and dipped in person credit card transactions.

-For those times you can't do in person, like on online ordering, have very specific return and usage policies laid out on your site, along with a note saying something like "a purchase from our website means your acceptance with our terms and conditions"

-Enroll in Square's Risk Manager from the Dashboard.

These won't solve the chargeback issues, but it will help.

If your customers are able to charge on others card information directly from your Square systems, it sounds like you may have your Card on File information for that customer not set up correctly. (Wrong email/phone liked to the card information for example). However, Card on File transactions have to be initiated from an in person transaction, so I'm curious how your sales flow would go to even get put into that position.