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Originally Posted by vintagetoppsguy
What prevents chargebacks? What's to keep a buyer from saying that their credit card was stolen and fraudulently used? I've thought about using Square too, but how do you protect yourself as a seller?
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Typically if a cardholder calls in lost/stolen, the liability falls on the card issuing bank. Cardholder may only get dinged up to $50 by law and merchant has no liability (unless of course they are scamming.) That's a bigger problem if and when caught...
Also the fact that the card is swiped and a signature is obtained on a receipt or pad and now a chip being read help cover the merchant (you should compare signatures to card reader to back of card by the way) All of those help prove that the card was physically in the merchant's hands or at his/her establishment. Lessening any fraud claims...
As for chargebacks card holder has to have a valid reason for it...if its buyers remorse you may wish to refund and take item back if not damaged, swapped out etc...as good customer relations.. If they claim damage on a face to face transaction it is very tough to prove from the cardholders standpoint...Time to institute a chargeback is also limited by most credit cards and varies greatly...
Fear of chargebacks in retail environment are very low on the risk scale as compared to Mail order/phone order/internet sales...same with pin-based debit cards...
Think of it as plus business, you have something a customer wants - make it easy for them to buy it!