x

A customer disputed a charge, what happens next?

The title of this thread was updated from its original title: “$3900.00 withdrawn from my account”.

 

$3900 transaction was canceled by customer 34 days after the transaction. Square automatically withdrew it from my bank account before the dispute was settled? Is this a common practice of theirs? 

3,968 Views
Message 1 of 16
Report
15 REPLIES 15
Super Seller Alumni

Sounds like there is a credit card disput.  Yes, this is standard Credit card process and happens no matter what processor you use.

3,910 Views
Message 2 of 16
Report

Credit card disputes are always handled this way. The amount will sit in "limbo" until the dispute is resolved.

 

I recommend you immediately pull out any evidence this transaction took place and was not fraudulent. Having the following will help:

 

1. A signed credit authorization form

2. Copy of receipt that shows card was dipped/swiped (helps establish customer was in-store)

3. Copy of drivers license (I do this for large transactions)

4. The serial number/sku of the item (assuming it's a physical good)

 

Basically the burden of proof lies with you on proving the transaction takes place. It sucks but it's the risk of taking credit cards. At least you don't have to sit on the phone with Paypal and wait 2 months because the customer decided to never respond. 

3,900 Views
Message 3 of 16
Report

Our clinic received a disputed charge from a patient.  I sent in a signed contract for payment, her Drivers License, previous charges she was not disputing, follo-up charges she was not disputing, and several texts from her phone number documenting the patient asking me to charge the payment and approving it.  Her bank apparently did not find the above sufficient and refunded her money.  I’m flabbergasted. Anyone have suggestions? 

3,509 Views
Message 4 of 16
Report
Admin

@StarN -Sorry to hear that the dispute didn't go in your favor. Regrettably, the bank does have the final say of who wins the dispute

Bea_
Beta Community Manager, Square
Join the Beta Community
Evaluate | Influence | Engage
3,465 Views
Message 5 of 16
Report
Alumni

A big shout out to @RHatch & @atozmedical for detailing chargebacks here on this thread.

 

@Mh1723 I'm sorry to hear this news. Please do make sure to check your inbox for a message from our Disputes team. Please also check out our guide, Chargeback 101: Credit Card Chargebacks Explained.

 

3,895 Views
Message 6 of 16
Report

 Live and learn I guess. Of course it happened on the largest purchase I’ve ever sold. Couldn’t happen to me 10 or $20 purchase right??  Grrrrrrrrr........

 I just can’t believe someone can have that type of money withdrawn from your account before the dispute is over. I had troubles making payroll that week because of that. 

3,867 Views
Message 7 of 16
Report

Hello Square family! I sell smartphones on my platform and on Aug 10th one of our customers did a charge back for $345.00 for a Note 8 Smartphone- 64gb. Thought issue would be a cinch after we provided tracking number showing the item was delivered. Also showed where the customer found us on Facebook and asked for info about item. Woke up to an email Oct 15th stating the customer won the case! So I am currently out of $ and the product. Called square for assistance. 1st representative Anna was very polite but had to transfer me to "Disputes Department" being this was out of her scope. This other representative was very nonchalant and said that once a dispute is closed there is nothing that they can do and said I would basically have to go after the customer myself......  now why would I continue processing with a company that doesn't protect me in situations when there was plenty of proof that this customer received the phone. PayPal, here I come!

3,444 Views
Message 8 of 16
Report
Admin

@ycadallas Not sure if you saw my post above, but at the end of the day, it is the card-issuing bank who makes the final decision on who wins a dispute. Sorry you had to go through that process. 

Bea_
Beta Community Manager, Square
Join the Beta Community
Evaluate | Influence | Engage
3,435 Views
Message 9 of 16
Report

Yes, I read your post. No one is offering a solution for this issue.  How am I to go after the customer to open a dispute thru their credit card company? I see they paid by Visa but who do I call? I provided IP address , email address, physical address, tracking number,  thru dispute. So maybe I can provide info directly to them.  These are some of the things people say to provide to win a case but what can I do when I lose?

3,432 Views
Message 10 of 16
Report
Admin

@ycadallas You should've received an email from a our Dispute Resolutions Team. The email mentions that if you want to pursue this further, you can consult with a lawyer and initiate a legal process with the cardholder.

Bea_
Beta Community Manager, Square
Join the Beta Community
Evaluate | Influence | Engage
3,039 Views
Message 11 of 16
Report

We have a customer that disputed a charge in excess of $1900 and LOST several months ago.  Today they have disputed that same charge again and Square is going to hold the funds again!
How is it possible for a customer to dispute the same charge twice????

3,012 Views
Message 12 of 16
Report
Square Community Moderator

Hi @SOwnsbey and welcome to the Community.

 

I moved your post to one of the existing threads that goes over how disputes work but to answer your first question- yes customers can dispute a charge multiple times depending on what their bank allows. 

Ashley C
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
2,962 Views
Message 13 of 16
Report

I was wondering what's increases the possibility to win the disputes?

I'd a customer who opened the dispute as unauthorised transaction/don't know about transaction

While providing full info about the delivery and proof of customers , their bank made me loser. Exactly these cases I win 100% in PayP*l disputes

Whats the best practise to win here too?


2,837 Views
Message 14 of 16
Report
Square Community Moderator

Hi @Oneterrene and welcome to the Community.

 

I moved your post to an existing thread where there's seller to seller discussion of best practices for card payments that'll help you in the event of a dispute.

 

Check out the replies above for tips and information.

Ashley C
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
2,824 Views
Message 15 of 16
Report
Beta Member

Federal law allows a customer to dispute a credit card charge within 60 days.  Specifically this is what the law requires the customer to do:

 

The law is here.

 

Specifically the customer has 60 days and they must write a letter to me as a merchant.
As a result, square should not:
1. Allow disputes that are 60 days past the charge
2. Ask us if the customer has disputed, if they haven't the dispute is not valid.

 

No where in your dispute resolution are those options.   Seems like a problem.   Help me out here?

2,057 Views
Message 16 of 16
Report