Respond to disputes for canceled goods or services
About disputes for cancelled goods or services
Cancelled goods or services disputes refers to situations where a customer claims they canceled goods or services but were still charged.
In these situations, you need to provide evidence showing either that no cancellation was made or that the customer didn't properly follow your policies leading to a cancellation or refund. Providing the correct documentation increases your chances of winning the dispute and recovering your funds.
Before you begin
You can respond to disputes from Square Dashboard.
Ensure you have clearly disclosed and documented cancellation or refund policies within your customer acknowledgment. Learn to manage booking cancellations and prepayment policies.
Dispute evidence must be legible, verifiable, in English or with a translation, and clearly linked to the disputed transaction. Audio and video evidence isn’t accepted.
Identify the dispute reason and prepare evidence
Review the reason for the dispute to determine the applicable best practices and supporting documentation that’s needed before responding.
These types of disputes generally occur for retail or food and beverage businesses. If a customer claims they canceled their order but were still charged, prepare the following documentation:
- Clearly stated terms & conditions, refund, or cancellation policies and proof that the customer acknowledged the policies before purchase. This can include an “I agree” checkbox at checkout or a signed contract. If using a signed contract, the policy must appear on the same page as the customer’s signature. If the policy is located elsewhere in the contract, the customer must initial next to the relevant policy section. In all cases, documentation must clearly show that the customer reviewed and acknowledged the policies prior to completing the purchase.
- Proof of delivery that discloses tracking details, a full delivery address, with the delivery status of the goods or services as delivered. If a customer signed for the delivery, provide proof if available.
- A copy of the customer’s delivery instructions, like if leaving the goods at their door was authorized, or required a signature.
- Photographic evidence of the delivery with a geolocation, if available.
- Documentation of all interactions regarding the cancellation request, such as emails or text messages.
- For disputes involving returned goods, provide tracking information showing the return receipt and processing. If the customer contacted you regarding a return, provide copies of those communications including details about what occurred, such as whether the return was refused, a return authorization was issued, or if the customer was instructed to keep the goods.
These types of disputes generally occur for retail or food and beverage businesses. If a customer claims they attempted to cancel an in-store purchase but were still charged, prepare the following documentation:
- A copy of a clearly disclosed cancellation or refund policy listed on the payment receipt at time of purchase.
- A receipt signed by the customer or an agreement to the terms of the sale.
These types of disputes generally occur for health and beauty or professional services businesses. If a customer claims they cancelled a service appointment but were still charged, prepare the following documentation:
- Clearly stated terms & conditions, refund, or cancellation policies and proof that the customer acknowledged the policies before purchase. This can include an “I agree” checkbox at checkout or a signed contract. If using a signed contract, the policy must appear on the same page as the customer’s signature. If the policy is located elsewhere in the contract, the customer must initial next to the relevant policy section. In all cases, documentation must clearly show that the customer reviewed and acknowledged the policies prior to completing the purchase.
- If cancellation or no-show fees applied, these need to be clearly stated in the terms & conditions, refund, or cancellation policies.
- Documentation of all interactions regarding the cancellation request, such as emails or text messages.
- A written copy of the cancellation confirmation that was sent to the customer.
These types of disputes typically arise with digital downloads, media creation, content updates, online education, or tickets delivered via QR code. If a customer claims they canceled digital goods but were still charged, prepare the following documentation:
- Clearly stated terms and conditions, refund, or cancellation policies and proof that the customer acknowledged the policies before purchase. This can include an “I agree” checkbox at checkout or a signed contract. If using a signed contract, the policy must appear on the same page as the customer’s signature. If the policy is located elsewhere in the contract, the customer must initial next to the relevant policy section. In all cases, documentation must clearly show that the customer reviewed and acknowledged the policies prior to completing the purchase.
- Documentation of all interactions regarding the cancellation request, such as emails or text messages.
- A written copy of the cancellation confirmation that was sent to the customer.
- Evidence that the digital product was already delivered before cancellation request.
- Proof that the customer accessed or downloaded digital goods or content before requesting a cancellation.
Submit your dispute documentation
Once you’ve compiled the supported documentation for your dispute, submit them in your Square Dashboard. In your dispute response, ensure you provide the following evidence where applicable:
When the customer’s cancellation was requested.
A statement that the customer never contacted your business to request a cancellation.
Evidence of continued usage after the claimed cancellation date.
Learn how to submit your documentation and manage payment disputes.