Payment disputes are a risk when accepting payment cards. The following guidelines may help you reduce the likelihood of disputes and be prepared in the event that you do receive one.
Take a moment to learn about best practices for accepting payment cards and how to prevent fraud.
Present Your Refund, Return and Cancellation Policies
Present written return, refund and cancellation policies on your receipts, invoices or any other documentation used to complete a sale. Presenting a no returns/refunds/cancellation sign at the point of sale is not sufficient notice of your business’ policies.
Generally, you should make your terms of service and any relevant policies easily accessible on your website. For higher value goods or services, we recommend collecting proof that your customer has agreed to the sale under your terms. This can look like an ‘Agreement’ tick box as part of your online checkout flow, a signed service contract and more.
Make the Name on Your Customer’s Bank Statements Recognisable
Many times, a payment dispute can occur because the customer does not recognise the transaction reference from a payment on their card statement. You can mitigate this risk by making sure your business name is saved correctly within the Square Dashboard and reflects the type of goods or services you provide (if not already recognisable). If you don’t have a business name, use your service type followed by the name of the city where you provide this service (e.g. Taxi – London). Do not use your personal name as your business name as customers may not recognise your name when it appears on their statement.
Communicate with Your Customers
Initiate and maintain open communication channels with your customers via Square Feedback, or any other avenues suited for your business. Keeping communication open with your customers and responding quickly to any requests for information on pricing, deliveries, refunds and more helps alleviate customer disputes.
While your customers can reach out to you through Square Feedback, you should also make your business’s contact details visible and easily accessible to your customers. You can even include your business details on your Square Receipts.
Keep in mind that you can always resend a receipt from your mobile device or from the Square Dashboard.
Attach a Contract
One of the best ways to avoid misunderstandings or late payment is to put a contract in place. Contracts allow you and your customer to understand exactly what is expected from your transaction, minimise your chance of a dispute and help ensure that you get paid.
You may also consider using one of our contract templates to develop your own set of terms. Using contracts can help to build good customer relationships and avoid disputes by setting expectations with your customer at the outset. Take a look at the contracts we have available in the Square Contracts feature.
If you need help attaching a contract or file to your Invoice or Appointment, our Support Centre can help.
Note: Square is not a law firm, a solicitor or a professional advisor in any industry. Square provides this template to individuals who choose to prepare their own contractual documents and does not constitute legal advice.