Complaints

Payment Withholdings from Square Could be Disastrous for Some Small Businesses

Many businesses that have an online merchant account from Square have become aware of a recent development involving “holding” funds from their merchants–sometimes for as long as 120 days. What is Square’s “Rolling Reserve?” According to widely published news reports, the payment processor Square has been withholding funds from some of the merchants that use…

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Common Credit Card Processing Problems

Practically every business in the modern economy can benefit from accepting credit card payments. Credit cards are among the most popular consumer payment methods and adopting credit processing technologies can greatly boost sales and revenue. That being said, many small businesses face challenges to adopting credit card processing. Here are some of the more common…

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Friendly Fraud vs. Chargeback Fraud

According to statistics, credit card fraud and identity theft aren’t as common as we fear. Of all the fraud-driven cases of chargeback, only about 30% are true fraud cases. The other 70% or so are so-called “friendly fraud” cases, where a customer accidentally disputes a legitimate charge because of the customer’s error or genuine misunderstanding.…

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How to Reduce the Chances of a Chargeback

Chargeback fees may only be a few cents, or maybe a few dollars, but they pile up pretty fast, and their long term consequences are disastrous. It stays in your permanent bank records, even if the matter is resolved in your favor. If you accrue too many chargebacks, this could trigger an audit or even…

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Common Reasons for Chargebacks

When a customer makes a purchase from you, they can pay using a credit card or debit card. If it’s a one-off purchase, the cash transfer takes place immediately, and the money arrives in your bank account within a day or three. If it’s a repeated expense (like a subscription), it might not be posted…

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The Difference between a Chargeback and a Refund

Sometimes, a customer decides they want their money back. It might be because the product they purchased was faulty, or they might be experiencing buyers’ remorse. Maybe they ordered a delivery and it hasn’t arrived yet, or they can’t remember making the purchase. They might have reviewed their card statement and seen items or names…

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Fraud is the Most Common Cause of Chargebacks

Chargebacks can cost your business a lot, both in terms of money and reputation. Aside from the loss of revenue, you risk fines, penalties, blacklisting, or even a frozen account. Visa recognised this and made necessary changes. Their 2018 chargeback update goes a long way in protecting businesses from erroneously filed chargebacks. Visa reduced the…

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The History of Chargebacks

As a business owner, the word ‘chargeback’ probably makes you shudder. It might help if you had some background. The first credit cards were issued in 1950 by Diners Club. They were mainly used for travel and dining. Amex launched their credit card in 1958. Still, by 1970, Americans were yet to fully embrace the…

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