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A client of mine decided to allege that two duplicate transactions occurred on two separate transactions; which amounted to nearly $1,700 with my business. Square withdrew the funds out of my operating account. This put me nearly -$1,000 in the red, it nearly put me...
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3 comments
#1347152

Unfortunately, your problem really isn't Square, at least in this instance: the problem is the system. The same thing happens daily to merchants who take credit cards in person, over the phone, or over the internet.

It even happens with PayPal. They call it "friendly fraud" but it's hard to find anything "friendly" about it.

The chargeback system was created decades ago as a fail-safe, a way to get people to feel more comfortable with using credit cards. Merchant technology has advanced by leaps and bounds, but the chargeback system has not kept pace--and that makes it very susceptible to abuse.

Should communicating with the bank take 90 days? In the era of instant messaging, no, it should not.

But 90 days IS the average time. In their defense, it's not quite as simple as "talking to the bank": there are normally at least 2 banks involved, plus processors, plus other parties. Still, it should be able to be resolved in a week, but that is extremely rare.

Automatically taking the customer's word for the situation, without checking with the merchant? That's normal, too.

Banks know that most merchants can't afford to NOT take credit cards, so they're not that worried about losing YOU as a customer. Instead, they take the path of least resistance, which is to just assume the consumer is right and go ahead and lock up your funds (and in most cases, hit YOU with numerous fines).

No one explains this stuff to you going in; I had to learn the hard way. There are companies out there that say they can prevent chargebacks, but most of them are only negotiating with the banks to give you a heads-up if a chargeback is filed. Kinda like "Hey this is going to happen and there's nothing you can do about it but if you go ahead and give the consumer a refund (whether warranted or not), at least you won't get a chargeback fee ..."

As Daffy Duck once said, "Thanks for the sour persimmons, sister ..." I am not saying Square is a great (or a bad) company, just saying that what you experienced isn't that unusual.

It ain't RIGHT, it just IS.

There ARE people and companies who are fighting for CHANGE in the system (one company in particular seems to be making headway, but I'm not here to promote anyone...) . That's not much immediate help to you, I know, but still good to know that SOMEone is trying.

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ID
#481334 Review #481334 is a subjective opinion of poster.
Location
Anchorage, Alaska
Product
Square Account
Loss
$1677