Respond to credit not processed disputes
About credit not processed disputes
Credit not processed disputes refers to situations where a customer claims they were promised a credit or refund that was never processed.
In these situations, you need to provide evidence showing that either the refund was processed or that no refund was promised. Providing the correct documentation increases your chances of winning the dispute and recovering your funds.
Before you begin
You can respond to disputes from your Square Dashboard.
Ensure you’ve communicated your refund or return policy to your customer at the time of purchase. Learn how to manage customer refunds.
Missing documentation of alternative compensation, such as store credit or exchanges, will decrease chances of the dispute being resolved in your favor.
Dispute evidence must be legible, verifiable, in English or with a translation, and clearly linked to the disputed transaction. Audio and video evidence isn’t accepted.
Identify the dispute reason and prepare evidence
Review the reason for the dispute to determine the applicable best practices and supporting documentation that’s needed before responding.
These types of disputes generally occur across all business types. If a customer claims that a refund was not processed but you’ve already issued one, prepare the following documentation:
- Records showing that the refund was processed with a date, transaction amount, and the refund method.
- If a refund was issued via an alternate method, provide a copy of a cashed check, a cash receipt, or related documentation.
- Copies of any refund confirmation or communications that were sent to the customer.
If a full linked refund was issued and the payment was refunded back through the same Square POS device that processed the initial payment, Square will automatically respond to the dispute on your behalf and no further information is needed. However, if a refund was only partial or issued by an alternate unlinked method such as cash, check, or Zelle, you will need to provide additional information.
These types of disputes generally occur across all business types. If a customer claims a refund was promised but you didn’t agree to provide one, prepare the following documentation:
- Any communication records or a conversation history confirming that no refund was promised.
- Clearly stated terms and conditions, refund, or cancellation policies and proof that the customer acknowledged the policies before purchase. This can include an “I agree” checkbox at checkout or a signed contract. If using a signed contract, the policy must appear on the same page as the customer’s signature. If the policy is located elsewhere in the contract, the customer must initial next to the relevant policy section. In all cases, documentation must clearly show that the customer reviewed and acknowledged the policies prior to completing the purchase.
- Delivery documentation with tracking details, a full delivery address, and a status as delivered. If the customer’s signature was required at delivery, provide proof.
- Either an in-person itemized payment receipt, post-services signed completion statement, a contract, work order, or customer acknowledgment invoice.
These types of disputes generally occur across all business types. If a customer claims they didn’t receive a refund but store credit was issued per your refund policy, prepare the following documentation:
- Evidence showing that store credit was issued with the credit amount and the duration of validity.
- Evidence showing whether the store credit has been used or remains available.
- Clearly stated terms and conditions, refund, or cancellation policies and proof that the customer acknowledged the policies before purchase. This can include an “I agree” checkbox at checkout or a signed contract. If using a signed contract, the policy must appear on the same page as the customer’s signature. If the policy is located elsewhere in the contract, the customer must initial next to the relevant policy section. In all cases, documentation must clearly show that the customer reviewed and acknowledged the policies prior to completing the purchase.
These types of disputes generally occur across all business types. If a customer claims that a refund wasn’t processed but an exchange was provided per your refund agreement, prepare the following documentation:
- Evidence showing that an exchange was processed instead of a refund.
- Copies of communication showing that the customer agreed to an exchange rather than a refund.
- Clearly stated terms and conditions, refund, or cancellation policies and proof that the customer acknowledged the policies before purchase. This can include an “I agree” checkbox at checkout or a signed contract. If using a signed contract, the policy must appear on the same page as the customer’s signature. If the policy is located elsewhere in the contract, the customer must initial next to the relevant policy section. In all cases, documentation must clearly show that the customer reviewed and acknowledged the policies prior to completing the purchase.
Submit your dispute documentation
Once you’ve compiled the supported documentation for your dispute, submit them in your Square Dashboard. In your dispute response, address the specific reason for a partial or denied refund to the customer, if applicable.
Learn how to submit your documentation and manage payment disputes.