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Preventing Disputes

Where there are purchases, there are payment disputes. As with any transaction, there’s always a risk that your customer will dispute the validity of their purchase. Cardholders can initiate a payment dispute or chargeback by asking their bank to reverse the charge. But you have a better chance of avoiding disputes—and when they do happen, of convincing your customer’s bank that you’re in the right—by following a few best practices.

Take a moment to learn about best practices for accepting payment cards and how to prevent fraud.

Present Your Refund, Return and Cancellation Policies on Your Receipts

If a customer disputes a payment for a service or a product that wasn’t refundable, it’s not enough to provide their bank with a signed receipt. Presenting a “no returns, refunds or cancellations” sign at the register won’t convince them, either. The bank needs evidence that the customer was aware of your refund, return, and/or cancellation policies. Usually, you’re more likely to win a dispute if you can show that the customer signed a receipt or invoice in which these policies are clearly explained. Learn more about customising your receipts and invoices.

Keep in mind that you can always resend a receipt from your mobile device or from the Square Dashboard so your customer has a proof of purchase.

Clarify your business name on your customer’s bank statements.

If your business name isn’t saved correctly within the Square Dashboard, or doesn’t reflect the types of goods or services you provide, it may confuse your customer when they review their bank statement. When they see a name they don’t recognise, they’re more likely to call their bank and initiate a dispute.

For example, it’s best not to use your personal name as your business name, because customers will be looking for your business name on their statement. If you don’t have a business name, use your service type followed by the name of the city where you provide the service (i.e. “Florist - Melbourne, AU”).

Communicate with Your Customers

Open communication with your customers is one of the best ways to clear up confusion and reduce the likelihood of disputes. It helps to clearly communicate your expectations around pricing, sales tax, delivery, shipping, and the services you provide. Check out our full suite of Customer Engagement tools to create better experiences for your customers.

Learn more about: Payment Processing