Egift sold online with stolen credit card

[Samdav]

What would happen if someone buys e gift cards online at square portal with a stolen credit card and then redeem the egift card at my store. Would i be out of the money and merchandise? Is there any protection for me? Are there any alerts if fraud is suspected? I need more information before i push for more sales on social media. 

[ashc]

Hey @Samdav,

This is a great question and definitely a solid concern.

Unfortunately we at Square wouldn't know if the card was stolen unless their bank alerted us at the time of sale to decline it or the actual cardholder disputes the charge once it goes through. 

I can say that I haven't really seen this personally on our side before and it's not the most typical way scammers would use stolen cards though.

My best suggestion would be to ask for ID with card purchases if you don't already in store.

[Samdav]

On the gift cards sold by us, we are very careful with asking for Id if something seems suspicious.  What i was concerned was with cards purchased online and quickly used at our store or resold somewhere...i'm just trying to figure out the risk and how i can reduce it. I know they are always risks, but i would love to know if e-gift cards sold online by you can later be canceled after somebody report a stolen credit card. What is my liability and what is yours?