Square Chargeback Protection Takes Payment Disputes off Your To-Do List

Running a small business is challenging enough without the added stress of payment disputes. Square Chargeback Protection has you covered — we will fight a dispute for you while you get on with running your business.

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What is a chargeback? A chargeback, or payment dispute, occurs when customers ask their card issuer to reverse a charge. This can happen when they don’t recognize a charge or they aren’t 100% happy with a service or product.

Square is here to help sellers navigate the process, which begins when a customer requests a chargeback. A credit card issuer contacts us for proof that a payment is valid. Then, we contact you to collect information and respond on your behalf. After receiving an email or note on your Square Dashboard, you have seven days to respond to us via an Information Request Form. If the chargeback is eligible for protection, you’re covered no matter how the dispute is resolved.

Chargeback Protection is free and sellers are covered for up to $250 per month. To determine your eligibility, we review your information to see if you’re following best practices. How can you make sure you’re complying? Keep everything on file, such as: a signed copy of your refund policy, tracking numbers for shipped goods, all email and text correspondence with customers, and a complete record of your sales, including signed contracts, invoices and purchase orders.

Sellers using Square’s E-Commerce API to accept online payments are also covered. These sellers need to provide us with a buyer’s email address and shipping address, if possible, along with their e-commerce provider for dispute resolution.

Check out this handy list of ways to protect yourself in the event of a payment dispute or visit our FAQ online for more information about best practices:

  • Swipe payment cards whenever possible instead of manually entering data.
  • Get a signed order form if you’re making a large sale.
  • Make sure you clearly disclose your refund policy at the point of sale.
  • Clearly feature your business name on your receipts.

For more information about Chargeback Protection, watch our instructional videos here.

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