Why This Happens
Square monitors chargeback rates across all merchants. When your dispute rate exceeds acceptable thresholds, your account enters a monitoring program. Excessive chargebacks result from poor customer service, unclear billing descriptors, product quality issues, or fraudulent transactions being processed.
Example Notification
"Your Square account has entered our chargeback monitoring program due to an elevated dispute rate."
Compliance Steps
Review all chargebacks to identify patterns and root causes
Respond to every open chargeback with compelling evidence
Improve billing descriptors so customers recognize charges
Implement clear refund policies to prevent disputes
Add delivery confirmation and customer communication touchpoints
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