[jakejake]

We all love retailers who have very low friction in order to let us buy things without hassles, one click, etc. And when you create your home business using a convenient service like Square of course you also want to offer this no-hassle payment service to your customers.

But what many people don't realize that these businesses also often are eating chargebacks - considering them a necessary part of business in order - to offer the low friction purchasing. When you're an individual and a $175 chargeback stings your checkbook (as it would for many of us) then it sucks to have to learn this lesson the hard way.

I will say at least with standard merchant accounts when a chargeback occurs the bank will often get you and the customer on the phone together to figure out the problem. It usually reverses most chargebacks. Many times it's simply a mistake because the customer didn't recognize the charge. If Square is not doing something like this then you probably are taking on a lot more risk using their service compared to a traditional merchant account.