Dive Brief:
- Mobile payment provider Square says it will cover all affiliated retailers in the United States and Canada with chargeback protection up to $250 per month.
- Chargeback disputes are an issue for small businesses, since they tie up funds that smaller merchants need on a day-to-day basis.
- The startup’s small-business offerings also include Square Capital cash advances, an iPad-based cash register replacement, inventory software, and online storefronts.
Dive Insight:
Square has sweetened the pot for small-business customers, promising to cover chargeback disputes of up to $250 per month at no charge. Chargeback disputes are often a problem for small businesses, since they can tie up crucial revenues for months while being settled.
Even if the client business loses the dispute, Square says it will cover the loss, making the compact, iOS-based card reader system more attractive to partner businesses and more competitive with systems from PayPal and Amazon. Square concentrates on small retailers, providing a range of products from cash advances to inventory and invoicing software.
