Question About Chargeback Policies

[JoyMarie]

Hello friends! Regarding chargebacks, is my understanding correct?

1) The credit card issuer doesn't have a time limit with Square for a second chargeback, so as long as the initial dispute was filed within 60 days, the bank could still perform a chargeback 6 months later.
2) The final decision about who wins the chargeback is completely up to the issuing bank, not Square the payment processor.

3) Even if the merchant doesn't have enough money in the account to cover the chargeback, Square pays the issuing bank immediately and then tries to collect from the merchant.

Thank you very much for your help!

[ryanwanner · Accepted solution]

@JoyMarie  You are pretty close to correct on all three counts.

1. The CC issuer actually has up to 90 days to file a dispute, but from what I can tell each bank has its own time limit for the consumer to contest a charge.

2. Completely correct. Basically, Square acts as your financial agent in the dispute process. They collect all pertinent information from you and present it to the disputing bank.

3. I believe this is correct. Square's help files are intentionally vague on the repayment process.

I highly recommend checking out the two following help files for the dispute process:

How Payment Disputes Work

Payments Dispute Process

[JoyMarie]

Thank you very much for that excellent and very thorough answer! I appreciate your time! You're so right about "intentionally vague" lol