Best Practices for Square Invoices

Square invoices are a great way to bill your customers without having to worry about entering in your customer’s payment card information. However, this gives you less visibility into how your customer is paying, so we recommend following these best practices.

Know your customer.

You’re in control of sending a Square invoice, so it’s important to know who you’re working with. Take additional steps to call your customer for large or unusual orders. If your customer is unable to speak on the phone or the phone number they provide doesn’t work, don’t proceed with a sale.

Send invoices directly to your customer’s email.

Doing this ensures that the customer accepts and recognises each payment that is processed, reducing the likelihood of a dispute. If you want to keep a copy for your records, you can always cc your own email address.

Review multiple attempts to pay an invoice.

Your customer has a few attempts to pay an invoice. For your protection, Square cancels an invoice if the customer reaches a maximum number of attempts. If you receive this messaging, we strongly recommend verifying your customer’s identity, seeking an alternate method of payment such as an electronic bank transfer or cash, or declining to complete the sale.

Be cautious of in-person pickups.

If someone is requesting to pay by Square Invoice but wants to pick up products or receive services in-person, this could be a sign your customer is using stolen card information. Verify the last four digits of the card by heading to Sales in your Square Dashboard and then selecting Transactions. Select the payment in question to see the card type and last four digits. Ask to see a copy of the card and the customer’s identification when you meet him or her in person.

You also have the option to ask your customer to pay their invoice in person.

Be cautious of requests for immediate or expedited shipping.

Additionally, check to see if the shipping address makes sense for your buyer’s order. Mail drop locations such as UPS stores and freight forwarders are commonly associated with fraud and we do not recommend shipping to them. If you receive an order from someone claiming to be a business, but the customer requests shipping to a private or residential address, this could also be a sign of fraud.

Include your terms of service and any estimated delivery times.

Make sure your customers are aware of your policies at the time they submit their payment. To help prevent any potential disputes in the future, include the following information in the body of an invoice:

  • refund policy
  • cancellation policy
  • terms of service
  • estimated delivery times

VAT Compliance

The Square Invoices product will send an invoice, as well as a payment receipt upon completion, to the customer email. In order for Square’s auto-generated invoice to be VAT compliant when you are selling to another business, you must include several pieces of information in the Notes field:

  • Customer VAT number
  • Quantity order of each item
  • Price per item (excluding VAT)
  • Discount offered per item
  • Credit Memo details required

We are always trying to improve Square products and create better tools for managing your business. We are working to make Square Invoices VAT compliant, but do not have a timeline we can share just yet. Square Invoices can currently be used in tandem with an alternative invoice provider, or by including the above information in the Square Invoices Notes field, in order to generate VAT compliant invoices if you are selling to another business.