Fraud / Dispute Charge on eGift Card

[Bobs-Tropical]

I recently got a dispute charge on eGift card that was sold through my website (everything through Square).

Then that gift card was used for an online purchase. I shipped the products out.

Everything went fine until we got a dispute charge on the eGift card purchase.

My question is:

WHAT DID I DO WRONG? or How to prevent a fraud like this?

When you sell an eGift card, you pretty much just plug it there on your site. 

You can't really control what information the customer needs to put in or not, right?

When I reached to my account manager at Square regarding this, here's the response I got.

One suggestion I highly have for you is to start using Risk Manager to completely block high risk payments.

Square Risk Manager is a customizable risk management system. It is designed to give you greater control over the sales you accept on your website, set customizable rules and receive alerts for address verification, or shipping/billing mismatches.  

That means I HAVE TO PAY MORE and it's still not a 100% guarantee that there will be no more case like this.

I'm pretty upset because this is my second FAILED dispute from Square.

I feel unprotected and suspect that Square do this on purpose to force me to pay for the Risk Manager.

Anyone has similar situation or recommend me to use the Risk Manager?

[privacy]

This is exactly what I am having an issue with.  Square is requiring us to pay extra to prevent someone from stealing from us.  Can't block a foreign email from purchasing egift cards.  $600 plus fees lost with no recourse.  

[Bobs-Tropical]

I now stop selling eGift Card, and still nervous everytime when I get online orders 😕

[Kassi_]

Hey there, @Bobs-Tropical & @privacy 

I wanted to let you know, there has been a recent development with security and Gift Cards. 

In the Risk Manager, an option to add 3D Secure to help authenticate those transactions. Take a look at the full announcement, here for more information.