How to prevent chargebacks from Squareup?

How to Prevent Chargebacks When Using Square

1. Use Secure, Card-Present Transactions

• Whenever possible, process transactions with the customer and their card physically present, using chip (EMV) or contactless payments. This reduces the likelihood of disputes and provides stronger evidence if a chargeback occurs.

2. Collect and Retain Documentation

• Keep detailed records for each sale, including customer information (name, email, address), signed contracts or invoices, delivery confirmation, and proof of service or product delivery. For card-not-present transactions, documentation is especially important.

3. Require Delivery Confirmation

• Use delivery services that require a signature or provide photographic proof of delivery. Keep tracking numbers and ensure delivery to the address provided at purchase.

4. Communicate Clearly and Set Expectations

• Clearly outline your return, refund, and cancellation policies on receipts, invoices, and your website. Make sure customers acknowledge these policies before completing a purchase.

5. Use Square’s Built-In Fraud Prevention Tools

• Enable Square’s fraud detection features, such as Square Risk Manager, which monitors for suspicious transactions and allows you to set custom rules.
• Use two-step verification and control employee access to sensitive account features.

6. Leverage Square Contracts and Digital Agreements

• For high-value or recurring transactions, use Square Contracts to obtain digital signatures and customer agreement to your terms. This provides strong evidence in the event of a dispute.

7. Send Digital Receipts and Confirmations

• Email receipts and order confirmations to customers immediately after purchase. This not only reassures customers but also provides a digital trail for dispute resolution.

8. Train Employees

• Ensure all staff are trained on best practices for accepting payments, recognizing suspicious activity, and following your business’s dispute prevention protocols.

9. Respond Promptly to Disputes

• If a dispute arises, respond quickly through your Square Dashboard, providing all relevant documentation. Square’s dispute agents will guide you through the process and manage communication with the customer’s bank.

10. Use Risk Management Software

• Consider integrating additional risk management or anti-fraud tools that work with Square to monitor for unusual or high-risk transactions.

By combining secure payment practices, thorough documentation, clear communication, and Square’s built-in fraud and dispute management tools, you can significantly reduce the risk of chargebacks and protect your business from financial loss.