+Square, the mobile payments startup that’s been shifting its focus to small business solutions in recent months, announced this morning that it will now cover all Square sellers in the United States and Canada with chargeback protection. That is, when buyers choose to dispute their charges with the business in question, Square will cover those chargebacks for free – up to $250 per month, the company notes.
Typically, chargebacks can be a big hassle for small businesses, as they can tie up funds that business owners are counting on while the disputes are settled. And working out the disputes is something that can often take a lot of time, which leaves the funds in limbo while the seller fights the chargeback and comes to an agreement with the upset customer. Notes Square this morning in a blog post, the process can be “complicated” and “slow” and can involve “a lot of paperwork and documentation.”
Going forward, Square says it will cover chargebacks of $250 or less for its business customers, with a limit of $250 per month. Perhaps more notably, the company also says that even if the seller ends up losing the dispute with the customer, Square will cover that loss. That will make the service more attractive to merchants, as sellers now have a range of similar card-reader products to choose from, including those from competitors like PayPal and Amazon, for example.
Square to date has already introduced a number of services aimed at small business owners, including a cash-advance business called Square Capital, iPad-based cash register replacements, inventory, ordering, appointment-setting and invoicing software, sales reporting software, online stores, and more.