Square to create contracts enabling businesses dispute buyer chargebacks

Thursday 26 July 2018 10:26 CET | News

Square will launch a feature that helps small business owners create contracts that protect them from buyer chargebacks and other credit card disputes, according to the Verge.

The feature will be promoted to business owners starting with August 2018. Square says that business owners who are taken advantage of by customers charging back on goods and services could save money with a contract that details the terms of a transaction. Moreover, the chances of winning a credit card dispute are nearly twice as high when contracts are used, according to Square.

However, the agreements aren’t supposed to help in the case of credit card fraud, when the affected customer generally holds no responsibility.

Business owners can give customers contracts before the transaction is fully completed. Thus, if the item or service is delivered to satisfaction, the customer can’t just chargeback or insist the product never showed up.

Square doesn’t make sellers pay it chargeback fees, which is standard practice for many payment platforms, including PayPal and Stripe. But, according to Verge, it does offer sellers up to USD 250 of chargeback protection per month.

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Keywords: credit card disputes, chargebacks, ecommerce, merchants, Square, credit card, card processing
Countries: World

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