Respond to paid by other means disputes
About paid by other means disputes
A paid by other means dispute refers to situations where a customer claims the payment was made using a different method than the one charged, such as cash or another card.
In these situations, you need to provide evidence showing each payment was for a separate purchase. Providing the correct dispute documentation increases your chances of winning the dispute and recovering your funds.
Before you begin
You can respond to disputes from your Square Dashboard.
Check for duplicate payments through different payment methods. Documentation should clearly distinguish between multiple payments by showing they were for different purchases.
Make sure you’ve verified third-party payments before charging the customer directly and documented the customer’s payment voucher redemption properly.
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 your 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 for retail, food and beverage, and professional services businesses. If a customer claims that a payment was made with a different card than the one that was charged, prepare the following documentation:
- Transaction records showing the disputed transaction was unique and not duplicated. If an initial “other means” payment attempt was declined and never settled, even if the transaction occurred on the same payment card, you can use this as evidence to justify the valid charge that did settle.
- Payment verification showing the other card payment was for a different purchase. If there were two charges but they represent different services, such as a booking fee versus the actual hotel stay under a different reservation, provide documentation that clearly differentiates these services.
- A receipt comparison showing different transaction details between the two payments.
- An explanation of why two different cards were charged for separate purchases.
These types of disputes generally occur for retail or food and beverage businesses. If a customer claims that they paid by cash or check but were also charged on their card, prepare the following documentation:
- Cash receipt records showing whether a cash receipt was issued for this transaction.
- Check payment records showing whether a check payment was received and processed.
- An explanation of why the customer was charged for separate purchases.
These types of disputes generally occur for travel and entertainment or professional services businesses. If a customer claims that the payment was made through a third party, such as a travel agent or manager, prepare the following documentation:
- Third-party payment records showing whether the payment was received from the third party.
- Booking or reservation details showing which party was responsible for payment.
- A payment agreement detailing which party has payment responsibility.
- Documentation of all communications regarding the payment arrangement.
These types of disputes generally occur for travel and entertainment or retail businesses. If a customer claims that they used a voucher or credit for the transaction but were still charged, prepare the following documentation:
- Voucher redemption records showing whether a voucher was received and processed.
- Credit application records showing whether store credit was applied to the purchase.
- Transaction details showing that the voucher or credit was for a different transaction.
Submit your dispute documentation
Once you’ve compiled the supported documentation for your dispute, submit them in your Square Dashboard. In your dispute response, ensure you address the specific payment method raised by the customer.
Learn how to submit your documentation and manage payment disputes.