Square Launches Chargeback Guarantee for Small Businesses
March 12, 2015
Square this week launched a service aimed at its small-business customers that offers some protection against the cost of chargebacks. The San Francisco-based company said it will cover the cost of fighting a chargeback up to $250 per month. The company said, in the event of a dispute that gets charged back, the merchant’s funds up to $250 will not be held while the chargeback process takes place. And, even if the merchant is unsuccessful in fighting the chargeback, Square will cover the loss up to that threshold. All Square sellers in the U.S. and Canada are eligible for the program, the company said.
Square joins several companies, including Forter , Riskified and Verifi , that have offered similar guarantees regarding chargebacks. Chargeback protection is free for all U.S. and Canadian Square sellers and mostly helps avoid tying up funds that may be keeping a small business afloat during the settlement of a dispute.
“Whatever the reason, the whole thing can be a huge pain for small businesses,” the company said in a blog post unveiling the service. “Working things out can be a complicated, slow, and time-consuming process involving a lot of paperwork and documentation.”