Credit cards

[Jp76]

Do we have to ask for identification from customers using credit cards?

if a customer use the card and it goes through but later we find out it’s a stolen card are we liable?

[MayaP]

Hi @Jp76,

Thanks for reaching out! This is a great inquiry. 

You are not obligated to collect identification. But you can certainly never go wrong by asking for it, and being extra precautious.

Generally, what happens if a stolen card was used is first Account Services is going to notify you.Then from what I have seen they will ask you to refund the payment once they identify it as fraud. 

While this is happening sometimes the account can be on temporary hold. You can still use the account to process payments, we just won't transfer the funds anywhere.  Once you refund the transaction your account is back to normal status. Again everything is case by case, but for the most part how I have seen it happen. 

Checkout this article on best practices when accepting payments.  

I hope that helped, let me know if you have any further questions! 

[Jp76]

Thank you. Yes very helpful 

but as a small business and money that I put in to my inventory I will lose out on merchandise that the fraudsters made off with and money that was put into my account. 

[MayaP]

@Jp76 As a business owner I do understand this predicament. You work hard, and shouldn't have to worry about scammers. 

I wish there was a guaranteed way to prevent this from happening, I really do! And some way to make people be decent, and honest. 

But as of right now in general that is how that process can unfold. Please let me know if I can further assist! 

[JTPets]

I have been with square for 3 years, never asked for ID, never charged a charge back. Most customers with stolen cards are going to get products that can be exchanged for cash easily. Depending on your industry you might be more or less at risk, but overall I don't think it is a huge risk for most small business.