how can the seller be blamed when a buyer uses a stolen card 7 times how is this possible ?

I made a sale on a friday i rang on the monday to make sure that the funds will be processed once my bank is confirmed. The buyer used a stolen card to make there payment. On the tuesday i woke with an email from square  saying square cannot finish processing my payment due to the buyer using the stolen card but what i do not understand is that it took the buyer 7 times to make the payment and square did not alert me on top of that i went to my local police station and was told to get the informaion on how does square know the card is stolen whos was it and so on. I then rang square back and was told i would have to find a page on there site and get the police to fill it out i have emailed asking for a link and i have been ignored. I also had a phone opporater tell me i dont make any sence while i was reading there policy from the square web site they then told me i wasnt making any sence and that they will have to teminiate my call without any answers that i am waisting there time and mine. If i was alerting on the 3rd decline like everywhere else does i would not be out of pocket its now $2360 i have lost with no answers. I am prepared to take this court but i need to have some sort of proof that there was a stolen card used. At the moment the police cannot do anything untill i can prove that the Law was broken. I have also found articles by the dquare developers saying that a stolen card can work on there square card readers???? Why is this the case and how am i in the wrong after checking everything if anyone else has had the same problems can they please help me i am a single dad stuck living with my parents i was going to use the money to get a rental property for me and by autistic 5 year old son. I know life id not fair but as a company square should be doing the correct thing and not telling people the incorrect informaiton as a contract is verbal, written agreement or signed contract after been told that the finds are there and will be processed within 6 days that it can take 6 days to link my bank acount and within 24 hours be told something diffrent. 

At the moment i believe square is the scammer and not the public i find this to be a joke but again if anyone can help please let me know asap 

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