Product: Checking or savings account

We own a catering company and process our credit card payments through Square. The funds that we collect from our customers that use a credit/debit card get moved into an account where we can have transferred to our bank or access through a debit card. 

On Friday XX/XX/XXXX we received an email that said a transaction was cancelled due to insufficient funds. I viewed this email the next day on the XXXX. 

" Your recent {$1100.00} transaction at XXXX using Square Debit Card ( ending in XXXX ) was declined due to insufficient funds. 

We get it these things happen. You may want to add money to your Square Checking account to ensure you have enough funds for your next transaction. 

To add money to your account, visit the Balance section in your Square app or Dashboard. '' We immediately realized that this was a fraudulent transaction and on the night of the XXXX, we went onto the Square app and reported the card as stolen. We also noticed that there was a transaction of {$1000.00}. We immediately reported that transaction and during the question phase, checked that the card was not in our possession. There was also XXXX charges of {$170.00} each that was pending. We were not able to dispute the {$170.00} charges until Monday XXXX. 

On Tuesday XX/XX/XXXX we received the following email. 

" Hi XXXX, We investigated your dispute and based on the details provided, were unable to credit your account as a result of this dispute. 

XX/XX/2023, XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX {$1000.00} The payments indicate a card was present at the time of the transaction. Your Square Debit Card was presented and authorized as a chip-based payment. Based on the responses you provided, the card has not left your possession and these are valid transactions. 

If you would like to further pursue this dispute, youll need to contact the merchant directly. 

Best, Ani Square Disputes '' We proceeded to call customer service. The person that answered the phone looked up our complain and said that she saw that we reported the card stolen within 48 hours and that we should email them explaining this. The following email exchanges took place. 

FROM US : Can you provide more details as to why this dispute was declined. We would like full details as and proof on how you can to the decision that you feel the card was still in our possession at the time of this transaction. 
We clearly stated when we filed the dispute that the card was stolen and not in our possession. 

Their Response : Hi XXXX, We understand that it can be frustrating to have the dispute closed in the favor of the merchant. 

However, due to the regulations set in place by the card networks and other financial institutions, we can not reopen and continue to challenge this payment dispute on your behalf. 

At this time, we have no new information to provide. If you do wish to challenge this case further, it is within your rights to pursue this matter directly with the merchant and/or seek legal recourse. 

We apologize for any inconvenience this may have caused you. 

Best, Ani Square Disputes FROM XXXX : We are very frustrated with this process. Please read the time line. 

We received an email stating that a purchase was being declined due to insufficient funds, At this point we realized that our debit card was stolen. 

We immediately went onto the card and reported that it was stolen and we disputed the first charge of XXXX. We also saw XXXX charges for {$170.00} each that was still pending. We could not report that as fraudulent until it posted. 

After reporting the card stolen we asked for a replacement card. All of this was done within 48 hours of the purchases and within XXXX minutes of us noticing the card was stolen. 

Regardless if a chip was used or not, I am stating that we did not make these purchases and we reported the card stolen and did not have possession. 

If these XXXX charges are not reversed within 48 hours, we will close both this Square account as well as the other account that we also hold for our catering business. We will also report all of the details to the FTC as well as contact legal assistance. 

We will also appreciate a phone call at XXXX to discuss these matters. 

When we contacted Square they stated that they saw that we reported the card as stolen on there end. 

XXXX XXXX Their last response : Hi XXXX, However, due to the regulations set in place by the card networks and other financial institutions, we can not reopen and continue to challenge this payment dispute on your behalf. 

At this time, we have no new information to provide. If you do wish to challenge this case further, it is within your rights to pursue this matter directly with the merchant and/or seek legal recourse. 

We apologize for any inconvenience this may have caused you. 

Best, Ani Square Disputes This process has been very frustrating. We were the victim of a theft and feel like we went through the correct procedures. The total amount stolen from us was {$1400.00}. We hope that you can help.