Non refundable deposits for reserving future purchase items and customer disputes

[Bellylaff111]

I sell a product to consumers nationwide via a website and several social media platforms that direct an email inquiry to me and I use the virtual terminal as well as the Square invoices app to take payment for items that are on a waiting list and require the buyer to leave a reservation deposit for several months until the product is produced, in some cases it can even be over a year before the product is delivered.  I have a no refund policy stated clearly in the initial reply to incoming email inquiries, I text or speak directly with the customer prior to sending an invoice to clarify the policy and it states clearly on the invoice "all payments for reservation deposits are not refundable.  By submitting payment you acknowledge that you have been advised and understand the non refundable payment policy."  I advise the customer to read the invoice carefully before submitting payment and I have my bases covered via email,  text or phone log and the invoice payment receipt but the customer can simply file a dispute through the bank or credit card company for the card they used and it's a crap shoot who will win. When the item is produced, the customer is expected to visit to see the item and confirm acceptance for the final balance owed to be invoiced and delivery/pick up is several weeks later. The process from deposit to pick up/delivery can span up to two years yet despite all efforts to clearly relay the policy in all aspects of communication customers can file disputes at anytime regardless of all documented acknowledgement and get the non refundable payment returned to them for whatever reason, even false claims that can be proven incorrect or untrue, disregarding any policy stated.  If you ordered an item from a retail store and decided that it was not exactly what you wanted after you left the store the best most retailers will do is a store credit.  Why is it so easy to get around the same policies and procedures when pre-selling items online that they chose to reserve after being made aware of all policies beforehand?  I would like to hear from anyone who has a no refund policy,  no cancellation policy and/or a waiting list that invoices using the Square app or virtual terminal that has experience with customer refund requests and/or card issuing bank initiated disputes for "goods not received" or "item/service not as described" for items reserved in advance where the customer knew ahead of time the date for expected pick up/delivery and did not follow any qualifying conditions for refund approval. 

[Minion]

Hey @Bellylaff111 

I know its been some weeks since this, but just wanted to chime in with my .02 for you.

I haven't dealt with this issue with square, but I have dealt with this issue before with PayPal. Customer ordered a product, sent the product, product was received by the customer, the customer filed a dispute saying it wasn't "as described".  Only needed to provide a tracking number of "returned item" in order to get their refund.  I received a happy birthday card was the item with the tracking number.  (true story).  Obviously I disputed that with video of the item in question etc. Moral of the story, some people just suck. You seem like you have way more documented information that I would have even though about having but most companies tend to side with the customer and not the seller and it really blows for small business like us and then people wonder well why did they implement this policy, well because you guessed it some people suck.

I'm not sure what service/product you offer but I am assuming that the deposit goes toward material and production?  Is this a custom one off items per customer or are they new products that are introduced to everyone?