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An Update on Chargeback Protection

We understand that the idea of fighting a chargeback, or payment dispute, can be a burden when you’re running a business. At Square, we help alleviate this stress by managing most of the disputes process for you. Our in-house disputes experts deal with the bank on your behalf and provide any supporting evidence against your customer’s claim, so you can stay focused on your next sale. Since 2011, we’ve saved Square sellers countless hours of time and more than $330 million in won disputes.

 

As part of our ongoing effort to save sellers money and time when it comes to disputes, we’ve spent the last few years offering a program called “Chargeback Protection.” Chargeback Protection covered sellers’ disputes up to $250 per month, if they provided us with the supporting evidence needed to challenge the dispute with their customer’s bank.

 

After collecting information from and speaking to thousands of sellers, we’ve learned you value the support of our other dispute management services more than Chargeback Protection. As a result, we’ve decided to retire Chargeback Protection and reinvest those resources into further improving our other disputes management features.

 

These disputes management features include:

 

  • Disputes Experts. We’re your interpreters for the banking system. Because we know how complicated the disputes process can be, we're always improving our team’s tools to help you build the best challenge case possible.
  • Disputes Dashboard. By providing you with your own Disputes Dashboard, we’ll continue to make it easy for you to submit your supporting documentation and keep track of active and past disputes all in one place.
  • Custom contracts. With Build Your Contract, you’ll receive access to customizable contract templates to help you get paid, set expectations with customers, and avoid potential disputes altogether.

 

If you find yourself receiving a chargeback, know that we’re here to help. The above features are some of the ways we provide you with support after the fact, but there are also a few things you can do to prevent chargebacks ahead of time.

 

We invite you to share your feedback, as we value your partnership.

Message 1 of 13
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ChapterTwo

Re: An Update on Chargeback Protection

If your business chooses not to have customer signature on credit card purchases, how will this play into the change?

 

Should customer signature be required for all credit card purchases ?

 

 

Message 2 of 13
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VanKalkerFarms Super Seller

Re: An Update on Chargeback Protection

on an EMV transaction (dipped or tapped) the signature requirements for chargebacks has been waived by the Credit card industry at large, not by Square itself, so that step is no longer necessary to prove a transaction happened, not that a signature or a line of scribble ever was that good of proof to begin with.

 

I'll let someone else jump in as I haven't had a chargeback in 19 years now and 100,000+ transactions. I always figure my proof will be the 5 cameras I have monitoring the checkout area and 3 on the parking lot and entrance as proof when needed beyond a scribbled signature.  Especially once we moved to Square 7 years ago as the customer signs and hit done before you ever see their signature, and once dipping started now the signature is hidden from view anyway so you can't compare if you wanted to.

Message 3 of 13
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ruthiesgirl

Re: An Update on Chargeback Protection

Hi, I always get signatures on all CC transactions. It's just something I chose to do when I first opened since I had terms and conditions on the receipt. I didn't want someone saying they never got the receipt or didn't know what my terms and conditions were.  The two instances that I have had a chargeback dispute was based on terms and conditions, and the copy of the signed receipt by the customer submitted to the bank (or through Square) I believe helped it come back in my favor.

 

I guess you just have to use your best judgment. I like a signed hard copy, and don't see myself changing that internal practice.

Message 4 of 13
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René Square

Re: An Update on Chargeback Protection

Hello @ChapterTwo  thanks for your question!

 

@VanKalkerFarms Is spot on with the new EMV requirements as published by credit card issuers, customer signature is no longer required when taking a dipped transaction using a chip capable terminal and card.

 

That being said, businesses can continue to capture signature as a method of cardholder verification (or use a signature to ensure cardholder acceptance of additional terms and conditions of a sale) at their discretion. Capturing that information can be useful in non-fraud payment disputes.

Message 5 of 13
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createhers

Re: An Update on Chargeback Protection

Is there now a way to get a direct pathway to challenge disputes that the client's bank resolved in their favor? I sent a copy of the completed project, live on the client's website and they STILL took my money back. 

Message 6 of 13
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VanKalkerFarms Super Seller

Re: An Update on Chargeback Protection

usually, your only option, once a dispute is found in the customer's favor, is to take them to small claims court.  

Message 7 of 13
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yy1

Re: An Update on Chargeback Protection

Received e-mail this morning regarding the removal of the $250/mo protection, so unfortunately will be removing Square as a payment option from our website as that was your only real protection (PayPal/Stripe, etc. all offer 'professional' services to help with disputes but we all know that is useless against chargeback fraud becuase banks will find in favor of clients).

 

I wanted to verify though that transactions prior to this announcement made on 4/16/19 are still covered by the $250/mo protection given they were accepted while this protection policy was still in place (in fact, your site still lists this benefit). 

Message 8 of 13
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VanKalkerFarms Super Seller

Re: An Update on Chargeback Protection

yes, they will be covered.  the program end date is 4/19/19. so any transactions up until then will be covered.  the website will be updated to reflect the changes.

 

do you really have so many disputes that it isn't worth taking in CC without the small safety net?  I'm not saying you should or shouldn't, just asking cause it seems very important to take CC for payments.  I guess I'm just an anomaly but we haven't had a chargeback in 19 years and 100,000+ transactions.

Message 9 of 13
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yy1

Re: An Update on Chargeback Protection

Great to know. I use Square for eCommerce with an average order size over $100. Since using Square for the past year, I have had 3 chargebacks (all have been under unauthorized transaction from existing customers who didn't understand the Square charge on their statement since we used another payment gateway prior). Of the 3, one is currently in review, one was covered as the customer directly contacted her bank after we reached out to her, and one was actually resolved in the buyers favor dispite the buyer providing written confirmation that they didn't mean to issue a chargeback. 

So it isn't that I get so many chargebacks, but the protection was a piece of mind. And I am still accepting credit cards, Square is not the only processor - I'm just not using them going forward to handle CC payments due to them no longer offering protection. PayPal for instance offers protection for "item not received" and "unauthorized transaction" immediately. 

Message 10 of 13
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