If a cardholder is ever unhappy with a purchase or wrongly charged for something, we always recommend reaching out to the Square merchant in question ahead of filing a dispute. This approach tends to work out more favorably for both parties, as it provides the opportunity to remedy the situation quickly and avoid what can often be a lengthy and formal dispute process.
If a cardholder does decide to formally file a dispute with their card-issuing bank, both the cardholder and merchant enter into a process determined by the cardholder’s bank in which both sides of the claim are evaluated.
It’s important to note here that Square doesn’t decide who wins or loses a dispute—that’s up to the cardholder’s issuing bank. However, Square does assist merchants in walking through the disputes process. Here’s how that process works.
Step 1: We notify the merchant of a dispute.
When a cardholder initiates a dispute, the cardholder’s bank contacts us to get more information about the transaction (receipts, invoices, proof of delivery, etc). We then reach out to the Square merchant to pass on this request.
Step 2: The merchant sends us more information.
If the merchant decides to challenge the dispute, they send us the requested supporting evidence, and we handle sending that information to the cardholder’s bank.
Step 3: We wait for the bank to resolve the case.
After we’ve forwarded the Square merchant’s information to the cardholder’s bank, it can take up to 90 days for the bank to make a decision. If the bank rules in the merchant’s favor, the transaction stands. If the bank rules in the cardholder’s favor, funds are returned to the cardholder.
What if the cardholder is unsatisfied with the bank’s decision?
The decision process is determined by the cardholder’s bank and is absolutely final. If the cardholder is dissatisfied with the bank’s decision, we encourage the cardholder to contact the merchant directly to see if the issue can be resolved outside of the disputes process.
Again, we always recommend the cardholder reach out to the merchant ahead of filing a dispute. If the cardholder opts for a digital receipt from a Square merchant, all they have to do is click one of the feedback icons in the receipt (see below) to be able to send a comment directly to the merchant.
Merchants can respond directly to these comments and cardholders can also always go back to the receipt to leave another comment.
Should a cardholder ever need to question a transaction in the future, this feedback tool provides both parties with an opportunity to resolve the claim quickly and without the burden of formality.
