Whether you’re using Square’s API or one of our partners, accepting e-commerce payments is great way to establish or grow your business. It’s also important to take additional precautions on these types of orders to prevent fraud and disputes. Even a successful payment could be from a card that hasn’t yet been reported as stolen or compromised.
Match Billing and Shipping ZIP Codes
If you’re shipping an item, check if the billing and shipping ZIP codes match. If they don’t match, reach out to your customer for verification. Their answer should make practical sense. If it doesn’t, refund the payment.
Be Cautious of Requests for Immediate or Expedited Shipping
Additionally you can check to see if the shipping address is a private address. 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’re shipping a product, make sure to keep the tracking information and a delivery receipt. For large orders, require a signature confirmation at delivery.
Monitor Declined Cards
Declined cards can be a sign that someone is trying to pay using stolen credit card information. If you notice an order with mismatched billing and shipping information, review possible attempts to use multiple cards by logging into your Dashboard, selecting Sales > Transaction Status. If a customer attempted to pay with multiple cards within a short time frame, refund the successful payment.
E-commerce Platform Merchants
Third party e-commerce platforms (such as Bigcommerce, Weebly and Ecwid) may offer additional solutions such as Signifyd to minimize your risk. While we currently don’t offer this option, you may be able to find a solution on these platforms that works best for your business.
E-commerce API Merchants
If you’re using the developer API, consider passing additional information to Square about your orders such as buyer email addresses and shipping information. More order details help us better protect you, and you could be eligible for coverage under Square Chargeback Protection. Learn more about Chargeback Protection.