Chargebacks: How Stripe and Square Manage Disputes
Edited

This article outlines how payment processors Stripe and Square each manage chargebacks. The educational information below is meant to help you fight and win chargebacks submitted by any fraudulent card holders. As a reminder, BentoBox does not manage chargebacks, handle disputes, or reimburse purchases. For more information, please review our terms and subscription agreement

What is a chargeback?

A chargeback, or a payment dispute, is when a cardholder questions a transaction and asks their card-issuing bank to reverse it. The ability to dispute a payment is meant to protect consumers from unauthorized transactions, but it can cause frustration for businesses when they’re issued in error.

The statement descriptor is the business name that appears on your diner’s credit card statements. It is important to use a recognizable name that will not lead to unintended disputes.

When a chargeback happens, you are alerted in Square or Stripe and can submit a dispute. Disputed funds are withheld until the bank reviews and determines whether the chargeback is favored to move forward or whether a dispute proves the charge was valid. If the bank rules in your favor, they’ll send the disputed funds back to you. If the bank rules against you, funds are returned to the cardholder. 

Chargebacks feature comparison (Square vs Stripe)

 

Square

Stripe

Alerts for chargebacks in payment processor dashboard

Yes

Yes

Manages disputes for you

Yes

No

Requires dispute evidence

Yes

Yes

Additional charge for chargebacks

$0

$15

Payment processing fee refunded after
reversing chargeback

Yes

No


How to view and manage chargebacks with Square

To view any active disputes you can click here to view them within your Square dashboard. A full overview of how Square manages chargebacks can be found by following the link here

How to view and manage chargebacks with Stripe

To better understand Stripe’s dispute process and the evidence they require/suggest, go here. BentoBox is currently not compatible with Stripe’s new chargeback protection product. 

Where to download order information? 

Square and Stripe will ask for evidence for a dispute resolution. While BentoBox cannot guarantee these will work, here are steps to provide these payment processors the most information about who purchased the items and who the credit card holder is. 

For a dispute for online ordering:

  • Log into BentoBox and go to Online Ordering > Order History.

  • Find the order in question (use the search bar to search for the order number or guest’s email). Click into the order details. 

  • Click print and save as a PDF to attach to your dispute.

For a dispute for gift cards, merchandise, or ticketed events: 

  • Log into BentoBox and go to Orders.

  • Find the order in question (use the search bar to search for the order number or guest’s email). Click into the order to view the details. 

  • Click print and save as a PDF to attach to your dispute.