The Disputes Process | Square

Sometimes customers dispute a charge. Square will work with the bank to make the process as easy for you as possible and never charge you any additional fees. You can fight the dispute if you wish, but know that while we’ll do our best, the bank’s decision will be final.

TRANSCRIPT

With any sale there’s a chance that a customer may dispute the validity of their purchase and ask their issuing bank to reverse the charge. This is called a payment dispute. Square never charges you a fee for disputes.

When a customer initiates a payment dispute, their bank places a hold on the funds until they make a decision about the dispute. These funds are retrieved from your Square balance if available. If not, they are debited from your bank account.

Our Disputes Resolution Team helps make the dispute process as simple as possible for you. Here’s how it works:

Step 1: We’ll notify you of a dispute

Look for information about the dispute on your Square Dashboard and your Point of Sale app under Reports. You’ll be able to find: a description of why your customer has initiated the dispute, the information the bank needs to make their decision on the case, and the deadline for sending us your information.

Step 2: Decide on how to proceed

You can either accept the dispute as valid or challenge it.

Step 3: Challenging? Send in evidence.

To challenge, send Square the information the bank is requesting and any supporting documents about the transaction, such as receipts, signed invoices, email correspondence, proof of delivery, or photos. The more evidence you can provide, the better. We’ll review the documentation, add any relevant data to improve your response, and submit it to the customer’s bank.

Step 4: Wait for the bank to resolve the case

The customer’s bank can take up to 90 days to resolve the case. As soon as a decision is reached, we’ll notify you via email, and in the Disputes section of your Dashboard. If the dispute is resolved in your favor, the funds will be credited back to you immediately. If the bank resolves in your customer’s favor, they will receive a refund for the disputed amount. Either way, the bank’s decision is final.

[lisabenard]

THIS ISN'T FINAL . WE HAD A DISPUTE FOR OVER 15, 000 SQUARE AND CREDIT CARD COMPANY SETTLED DISPUTE IN FAVOR OF CUSTOMER WE TOOK THE CUSTOMER TO COURT AND IT WAS RULED IN OUR FAVOR . THERE'S ALOT OF PEOPLE OUT THERE SCAMMING PEOPLE WHEN THEY'VE RENDERED A SERVICE AND THEN THEY DISPUTE IT TO GET THE MONEY BACK BEWARE.

[Life_Change]

In 13 years, we've only had 2 times when a charge has been disputed and money was taken back by Square. Both times it was an in-person, card-present transaction. Both times, we immediately contacted the customer (neither called us before disputing), and the customer immediately realized their error. They both contacted their credit card company, and we, of course, disputed the chargeback. The first time, the CC company reversed the chargeback within a couple of weeks, and our money was returned. However, the second time, despite providing emails and other printed documents to square indicating that the customer recognized the charge, confirmed it was legitimate, and wanted us to be paid, their CC company (Capital One) dragged their feet for 3 more months, refused to accept the customer's insistence that we be paid, and the dispute was ultimately resolved against us by Square. Unbelievable. This caused the customer to be further inconvenienced and to mail a check to us. Yes, it was their fault to start with, but it's unthinkable that their credit card company refused to stop the chargeback process once they were informed it was in error.

[benquainfitness]

currently going through a $500 dispute for personal training services after the person decided to forfeit her service. provided all the evidence needed. im gunna stop using square if this doesn't go in my favor. You need to do a better job protecting business owners

[BlackCatMusicShop]

A scammer using stolen card numbers on our Square website was able to purchase items, after dozens of attempts using multiple card numbers were declined, he was able to get one of them to work, and Square processed the payment. The same person was able to do this 3 times on 3 different days before we realized something wasn't right. ..same thing, many different card numbers all declined until finally one of them worked. We shipped the goods to someone in FL and now Square tells us we are out of luck. Why did Square allow an order to go through like this? We had no way of knowing until after the fact that he was using so many card numbers, probably automated. Why didn't Square catch this?? Why would Square process a payment after so many failed attempts????

[tee-]

I found that it's next to impossible to win chargebacks with Square. I used different payment processors throughout the last 5 years that I run my small business, and Square is by far the worst in terms of standing up for the merchant.

[phototristan]

It’s shocking to me that Square only covers the account holder for $250 in chargeback protection

[upcloseimage]

I won a chargeback when a client filed a dispute... a good contract and supporting evidence in your favor and you will win!

[AhimaraSuarez]

This is very disappointing, this has happened to me several times this year. Should I ask my clients for ID, request the signature of the receipt and also take a photo, every day?

[islandglamourdiva]

I'm currently going through a dispute as a career coach. I immediately let square know I disputed, the dispute and I have provided proof of the customer agreeing and acknowledging the no refund policy, the sent square invoice via email, sent acknowledging receipt of all services along with showing all correspondence between the customer utilizing the services through email, text,and direct customer log in to a website confirming their complete receipt of services. The outcome will determine my further actions but just from what has transpired thus far I am disappointed

[bobbybishop]

Thank you for this valuable information. I believe that this is the exact same amount of a previous dispute! 😅

[jjc]

Thanks & it’s very good & helping me.

[IdealDrain]

Had a customer file a dispute for goods or services not received. After giving square information regarding the transaction, they forwarded it to the cardholder’s bank. The dispute was resolved in my favor. The customer must have complained to their bank and much to my surprise, about a week later, they reversed their decision.
Square was totally useless. They told me that the banks decision was final. Just like it was final when it was ruled in my favor.
I was told that I would have to contact an attorney to pursue it further.
Fortunately, my dispute was only for 250.00.

[bentleyify]

Anyone know of a way to have a credit card payment be "full and final with no refunds or returns" When these card companies let a customer do a chargeback for buyers remorse or whatever other bogus reason and then keep the product they are basically facilitating theft!

[MintaMDMedSpa]

I owned the medical spa and 4 of my patient disputes and Square didn't help the business owner at all. we submit the paperwork and all our patient sign about no refund but Square can't do anything for it. we have lost abot $4000 in only 3 month with this company. Now im looking forward to move on with someone else

[evelinapspani]

It is nice to know that you can always have recipes for event's

[jamesfoster]

Customer got product Friday and paid balance by check and was happy. She said she called her bank

[ncscootercycleshop]

I had used Square Invoice and sent to the customer. I had the customer send me copy of CC and Driver License both name matched. Square approved the invoice for payment. Customer sent a pick up person and picked up the $4000 item. Later Square had felt this it was a stolen CC and would not unlock my account from my other transaction to deposit till I refund the $4000 invoice. Then to make matters worst would not work with the police to give them the paperwork they need to go after the thief. WTF

[LXZTUBE]

Sqaure, it would be nice if you went after these customers legally. They are essentially stealing from your clients. The bank choosing to give back the stolen money 90 days after is irrelevant. Please do more.

[JonathanWilcoxson]

I sent the item but the orderer opened a dispute to get my money back. that's ridiculous, even though I submitted the documents and won the dispute, the money is still on hold for more than 1 year and square has no intention of paying. Don't tell me to call Square again, it's no use. This is a scam

[lindsayharris]

This process is a scammers heaven. These companies know how to get over on us small businesses. These process helps them in that.