I accept phone orders and require customer to pay by credit card when order is taken. All appropriate info re credit card is taken and customer is charged using manual input of card. After customer picks up order and then waits for few days refusing to honor the credit card charge claiming fraud. Has happened a few times, and unfortunately, Square honors the customer's Bank request to reverse the charge and hence I loose sale and food the customers took. The bank states that the chip was not inserted and hence invalidates the charge.
I dont want to loose sales in these tough times so I accept phone orders - especially ones who say they dont have access to computer or smart phone to place online order.
Any suggestions how to avoid such fraud, without loosing other such sales where customers are honest and pay for the food? It seems very easy for people to commit such fraud knowing their bank will not honor charge as card or chip was not inserted into Square unit.
Help! Anyone!
