Open merchant dispute with a fraud client

[EC2024]

Is there any protection or additional reimbursements for Square pay  Merchants against customers? 

I currently have an open dispute where a client (another business owner) purchased my monthly subscription only to ask for the funds back within days due to family medical emergencies.

2 months on they have initiated a dispute on the transaction (as an unknown transaction)  which they fully knew about and I have provided proof. As a small businesss, my current (large) funds are now on hold for 90 days untill this is resolved. 

This is fruad!!

Also how are banks processing times allowed to be so slow?

Shouldn't I be compensated with interest from the client for wasting my time and good deed. 

Any help would be greatly appreciated. 

[Katie_SQ · Accepted solution]

Thanks for reaching out @EC2024, I’m really sorry to hear about this situation.

While Square doesn’t decide the outcome of disputes (as this decision lies with the cardholder’s bank), there are some measures you can take that may help prevent them in the future. I’d recommend reviewing the best practices outlined in this Support Centre article, particularly the information about Square Contracts.

Sorry I couldn’t be of more help here, but please let me know if you have any other questions.