Running a business comes with many challenges – chargebacks shouldn’t be one of them. With Chargeback Protection, Square will cover your eligible chargebacks, free of charge, so that you can continue focusing on what matters most for your business.
Eligibility for Chargeback Protection
Square Chargeback Protection is available for free to all Square sellers.
If you receive chargebacks when selling with Square and we determine that you have followed best practices, Square will cover up to $250 in eligible credit card chargebacks each month.
Square Chargeback Protection Overview
A chargeback is created when a buyer contests a credit card payment with their card-issuing bank. Perhaps the customer didn’t recognize the charge or felt the quality of goods or services was not as advertised.
Square notifies the seller of the chargeback via email and by posting a notification on the seller’s Square Dashboard. A detailed report of disputed charges is also available on the Square Dashboard. Like any chargeback, Square begins the investigation by asking the seller for information and supporting documentation about the transaction.
You’ll have 7 days to submit your response to our Information Request Form found in the notification email and on your Square Dashboard. If your information is received and it is determined that further documentation is needed, we will request it via email.
Chargeback Protection is offered if (1) we determine you followed Square’s best practices for accepting card payments and (2) the cumulative chargeback amount is within your $250 monthly coverage.
If your chargeback is covered you will not be liable for the chargeback amount, regardless of the outcome. Once a final resolution is made we will notify you via email for your records.
Chargeback Protection guards sellers against eligible chargebacks. It does not apply when sellers decide to issue refunds in the ordinary course of business.
Chargeback Protection for Online, Virtual Terminal and E-Commerce API Payments
Whether you’re using Square Online Store, Virtual Terminal, a developer integrating E-Commerce API or you are a merchant using one of our partner integrations, Square will cover up to $250 in eligible chargebacks each month, pending additional information required.
Like any payment dispute investigation, Square begins by asking you for information and supporting documentation about the transaction. You must complete the Information Request Form within 7 days from the date of the notification to be considered eligible for coverage.
If you use Square’s E-Commerce API to accept online payments, passing additional information to Square at the time of the payment can help protect you from chargebacks. To be considered for Chargeback Protection coverage, you will need to pass the following pieces of buyer information to Square:
- Buyer email address
- Shipping or Billing address
Please note that not all e-commerce providers currently allow for you to pass this information through to Square, but we are working with our partners to request this capability.
Frequently Asked Questions About Chargeback Protection
How much am I covered each month?
You are eligible for $250 of coverage for credit card chargebacks each month. You must respond to the Information Request Form we send you and describe the goods or services sold in order to be eligible for coverage. For a chargeback to be eligible for coverage, the disputed payment must fall completely within the $250 monthly coverage limit and coverage cannot be applied to partially cover disputes over $250. Chargebacks over $250 are not covered. Please note that any unused portion of your previous month’s coverage will not carry over month to month.
If my chargeback is not covered by Square Chargeback Protection, how will the dispute process take place?
For more information about the chargeback process, please review the Resolving Payment Disputes article in our Support Centre.
It’s past the deadline for chargeback protection and I have documentation to provide. Can I still submit it and get covered?
No. As stated in our initial notification email, you must provide documentation within 7 days in order to be considered eligible for Chargeback Protection.
If my payment dispute gets re-disputed, am I still covered?
Yes. Once you are protected, Square will cover you no matter the resolution of the chargeback.
Will chargeback protection cover my old chargebacks?
No. Square Chargeback Protection will not cover previously received chargebacks.
Is coverage guaranteed?
Coverage is not guaranteed. Sufficient documentation that addresses your buyer’s claim must be provided in order to be considered for Square Chargeback Protection.