Customer payment dispute

[DashEmpress]

I own a bridal store where items are non-refundable after purchase. Our policy is written on every entry door and register and staff are mandated to tell customers the policy before checkout.

A customer purchased an outfit at $79. For an event she had the same night of purchase. One month after the transaction she returned requesting a refund. She was reminded of the policy and denied. She left with the outfit. A month later she opened a dispute with her bank claiming she never got the goods.

evidence was provided to square and we still lost the dispute and we never got our payment plus we literally lose our inventory. We had to take this to the police as thief and the lawyers fee is more than we can imagine. No satisfaction from Square. 👎🏻

[DashEmpress]

I started this thread because I tried finding similar posts about card payment disputes and I felt like it is not given the full exposure needed for business owners to protect their business/merchandise.

I am the owner of a well known bridal and footwear stores across Long Island NY.

We have been using Square to power our stores for all payments and daily transactions.

On more than one occasion, customers purchased items in our stores and then open claims with their banks for refunds claiming the items were not as described, undelivered or not as promised. 

Keep in mind, we are not an online store, we do not order items for customers. We are brick and mortar stores where you get what you see on the racks. Try it, buy it, no refund, selective items exchanged. 

apart from the fact that we have a ton of refund/exchange policy posted every inch of our store, its mandatory for the cashier to read this policy to customers at checkout since some items can cost more than $300.00

now customers leave with the items and go home committing fraud by calling their banks claiming someone stole their card or they never got the item etc.

we go through this long extensive process of providing proof to Square who “fights the dispute on the merchant behalf” but still lose without a proper explanation.

Thus, apart from the limited information they allow the merchant to provide via their online dispute form, they don’t allow merchants to upload audio and video surveillance.

so what now? Customer have the merchandise plus a full refund.

the merchant has to go through extensive and frustrating process of going to the police and finding the case in court, that’s if they even get the card holder which can take months to years.

this is not a good system. SQUARE HAS TO REFORM THEIR REFUND/DISPUTE POLICY AND NOT EASILY RELEASE FUNDS TO THE CARD HOLDER BANK AND ACTUALLY FIGHT THE CASE OR GIVE THE MERCHANTS A CHANGE TO FIGHT FOR THEMSELVES! 

DISAPPOINTED. 

this also happened to someone i personally recommended square pos system to and she also got con. 

DISGRACE

[Candlestore]

@DashEmpress ;

I am sorry this has happened to you.  I business locally to me use to go to court all the time because parents would sign a waiver that their child was putting their hands into wax at about 150 degrees F.  Of course the child would sometimes screem because of the hot wax, then the parents would take that business owner to court.  At the bottom of his waiver he had it written any lawsuits would be at the full cost including their leagal fees and time lost from the business.  He would win and then have his leagal fees and his time paid for by the angry customers.  Problem was even though the courts ordered payment, it would either never come or payments were made at really low amounts.  They finally gave up doing the Hands of Wax because of this.   We had the same issue as you have, people would come in order a bunch of items for a wedding, pick the items up and then want a refund for the items.  We are not a rental store and had to also state all sales are final policy too.  We will exchange for the same scent if it is our mistake but you are not trying each scent and returning them each week that you do not like the scent.  We really had this problem with covid.  Loosing Taste and Smell is a symtom of covid, this is not a manufacturing issue.  

Best I can do is have them sign a no return policy and have video cameras of them signing it and leaving with the merchandise.  So even if they lie in court saying they returned it, you can show the signed no return policy and a video of them leaving with the item.

Again I am sorry this has happened to you, and I read these threads to see how to prevent it from happening to me or others.

Thank you for pointing this out.

[MayaP · Accepted solution]

Hello @DashEmpress,

Thanks for sharing your experience and feedback on our dispute process. It sounds incredibly frustrating to deal with these kinds of disputes, especially when you have clear policies in place and physical evidence like video surveillance. Here are a few suggestions that might help mitigate these issues:

Make your sales policies clear on your transaction receipts: 

If a customer disputes a payment for a service or a product that wasn’t refundable, it’s not enough to provide their bank with a signed receipt. Presenting a “no returns, refunds or cancellations” sign at the register won’t convince them, either. The bank needs evidence that the customer was aware of your refund, return, and/or cancellation policies. Usually, you’re more likely to win a dispute if you can show that the customer signed a receipt or invoice in which these policies are clearly explained. Learn more about customizing your receipts and invoices.

You may also consider using one of our contract templates. Using contracts helps you to build good customer relationships and avoid disputes by setting expectations with your customer at the outset. Take a look at the contracts we have available in the Build Your Own Contract feature.

Clarify your business name on your customer’s bank statements: 

If your business name isn’t saved correctly within the Square Dashboard, or doesn’t reflect the types of goods or services you provide, it may confuse your customer when they review their bank statement. When they see a name they don’t recognize, they’re more likely to call their bank and initiate a dispute.

For example, it’s best not to use your personal name as your business name, because customers will be looking for your business name on their statement. If you don’t have a business name, use your service type followed by the name of the city where you provide the service (i.e. “Taxi - Austin, TX”).

- Communicate with your customers: Open communication with your customers is one of the best ways to clear up confusion and reduce the likelihood of disputes. It helps to clearly communicate your expectations around pricing, sales tax, delivery, shipping, and the services you provide. Check out our full suite of Customer Engagement tools to create better experiences for your customers.

Attach a Contract: 

One of the best ways to avoid misunderstandings or late payment is to put a contract in place. Contracts allow you and your customer to understand exactly what is expected from your transaction, minimize your chance of a dispute, and help ensure that you get paid.

You may also consider using one of our contract templates to develop your own set of terms. Using contracts can help to build good customer relationships and avoid disputes by setting expectations with your customer at the outset. Take a look at the contracts we have available in the Square Contracts feature.

Note: Square is not a law firm, an attorney or a professional advisor in any industry. Square provides this template to individuals who choose to prepare their own contractual documents and does not constitute legal advice.

Your support and feedback mean a lot to us and we will pass your experience on to our team. In the meantime, I hope some of the suggestions I and @Candlestore provided will help! 

[Candlestore]

@MayaP ;

Now I have a few questions:

1. I have Signs around the store that say NO Refunds, Candles Melt in the Heat, Glass can Be Broken after leaving, Special Orders for Events are not Returnable.
2. On my Receipts it is stated NO RETURNS

How am I to know if the customer sees or reads these and if you think I will be printing out contracts for people to sign for every purchase that is insane.

Luckily in the 6 years with Square I have had 0 disputes.  We try to be open and let customers know if the items are for a wedding or other type of even they will not be allowed to return these items.  

Can Square make a Check box if they read the contract that we upload to Square that could be displayed on our Points of sale.  That way businesses can fight these false claims quickly with the banks?