3 Things You Might Not Know about Chargebacks

A chargeback happens when a cardholder contacts their bank and asks that a payment be reversed. Cardholders may file a chargeback for lots of reasons, but there are a few things you can do to prevent them, and to strengthen your case if you’re ever faced with one.


Let’s talk tips:


Give an itemized receipt, and keep a copy
One common reason you might lose a chargeback is that the you can’t produce a signed itemized receipt. In some cases, things like copies of texts or email interactions aren’t sufficient proof for credit card networks, so they may not help you much. One way to prevent this? Always get a signed itemized receipt, with the refund policy clearly outlined before the signature.


Include your business name on receipts

Many cardholders file a chargeback when they don’t recognize the name of the business when it shows up on their statement. To reduce the possibility of this, make sure your business name is updated and is descriptive of what you do. For example, if you’re a taxi driver, instead of using your name, make sure your business name includes “taxi.” So instead of “John Smith” your customer will see “Taxi Service - John Smith” - making them much less likely to file a chargeback.


Document as much as possible, especially for phone/internet transactions

A good rule of thumb is to keep track of lots of details of every transaction - things like what was sold (how much, and if installments which one) and the buyer’s name and contact info. This is especially important for sales when the customer is not present, such as phone/internet transactions. Writing “Internet Order” or “Phone Auth” on the signature screen can help Square fight chargebacks on your behalf. A signed contract or invoice, including an itemized breakdown, with proof that delivery took place, and that the client agreed to the final amount charged are very helpful documents when defending contract work. For more details, check out best practices for selling online.


If all of this sounds a little scary - don’t worry! If you’re facing a chargeback, we’ll ask you for some basic information, and then we take it from there. Learn more about what it's like to face a chargeback.

Is there anything specific you do to prevent chargebacks? What tips can you share? 

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1 Best Answer

Best Answer

Thank you for taking the time to explain this in detail! Very helpful!


View Best Answer >

Message 4 of 13

I have been practicing Dentistry for 30 years and have had only 5 chargebackrequests from patients.

All were using American Express. All were from women ages 42 to 49. All were people that had self esteem issues. All chargeback were eventually denied after 7 to 10 DAYS.

Now we come to the "Square" platform, protocol,methodology, position in entering the merchant services arena.

I performed some cosmetic dentistry on May16, 2017 for a patient, she paid with American Express. Then she returns 2 months later and has 4 more esthetic crowns fabricated and cemented with permanent cement.

We took photographs every step of the way and she seemed happy until the very last crown was cemented. Then she became a living viper bit*h nightmare. Her teeth looked fantastic but she found silly things to complain about. Unbelievable,  like I'm God and I'm supposed to make her look 20 years younger. 

She filed for 2 chargeback on December first, a total of $5,200.00 So of course my account is debited and the whole darn jury, judge, and executioner is fu*king American Express. They say the judgement day is in a a few months. Basically I'm screwed, somehow I feel that Square lacks the financial punch that my previous merchant service people displayed. For example I had a similar situation when I was using BB and T bank.

I walked in to my bankers office , gave him the details and presto, he had the chargeback reversed in one day , that's called clout. Big big banks have clout, I have Square, Square peg in a round American Express ho.

Message 2 of 13

Thank this was very informative 

Message 3 of 13

Best Answer

Thank you for taking the time to explain this in detail! Very helpful!


Message 4 of 13

Hey doc. Sorry this happened to you. I own a hair loss clinic and had a very similar experience and also with Amex card holders. There’s still 3 weeks left for the 3 month dispute decision by Amex. I have very thorough consents and very detailed financial policy which client signed and initialed that theoretically should cover me. I’m just curious what was your final outcome ? Thank u. -Jenn

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Do not accept American Express, ever !

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We are leaving Square after today and I hope you all do as well! PLEASE READ!


Customer purchased items from us and leaves store WITH ITEMS in March, like everyone else we were forced to close. We explained multiple times we weren't allowed in our building to refund items that would apply for return if they were unused. Customer files charge back against us totaling $400+.


We supplied Square with the following:

- a text FROM THE CUSTOMER sending us a picture showing they still had the product

- a letter headed letter describing the interaction with customer and that we were forced to be closed

- Our return policy sign in-store and on our website.


BUT IT GETS WORSE - Last week, we received an email from Square saying WE WON our case and the money was actually returned to our account. SIX DAYS LATER, the money that was returned was taken BACK OUT of our account and Square says that the decision was reversed?!?!?!


We are now out of our money, that was returned and then taken back again. As well, as our product that the customer still has. 

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Square Community Moderator

Hi there, @Gumina - thanks for reaching out to us here on the Seller Community. So sorry to hear that your dispute was resolved in your customers favor.


It's important to note here that Square does not have any authority when it comes to deciding a resolution on a dispute. That action is totally and completely up to the customers card issuing bank.


More info on dispute resolution here.

Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
Message 8 of 13

What a cop out. The Square Resolution process is a joke. Basically any time a customer decides they don’t want to pay for something they can just request a chargeback and Square will actually do nothing to protect the business. 

Message 9 of 13

I couldnt have said it better myself. When I read Squares policy and it said EVERYTHiNG is subject to change at ANY given time, I then realized this company doesnt back any interests of mine. It only cost me a $2000 chargeback to learn that.

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I repair boats customer got $1,100. In parts plus about $1,100. In labor customer enjoyed boat on the lake for 2 months now boat season is over does a dispute instantly guilty they take $2,300 out of my bank and you know the rest.

Message 11 of 13
Square Champion

@Sickles Do you have any proof of purchase or any items described above that you would be able to fight the charge back with? 

Lovewell Tea & Coffee//
Ventura, Ca

Message 12 of 13

This is a vacation/second home to many ,

this 80 year old fart calls me from Cali to pick up boat in another town 45 min away from my shop and have boat repaired and ready to go upon his arrival so not much proof, besides my invoice, 

obviously it was authorized because I don’t just pick up random boats and fix them

even tho I bet square and credit company are in cahoots,

There gonna give him my parts and labor and probably tell him I won dispute then they keep the cash

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