Consumer complaint received 2020-05-07
Company: Square Inc
State: OH
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
Att : Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX. 
Washington, D.C. XXXX  COMPLAINT AGAINST : SQUARE, INC. / CREDIT CARD PROCESSING COMPANY CONSUMER MERCHANT SERVICES XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, CA XXXX I write you today as I believe that willingly or not, Square Inc. is aiding and possibly abetting criminals who commit credit card fraud on their credit card processing platform. 
In XX/XX/2020 I received a e mail web site inquiry for the sale of pro audio products to a company based out of California. The contact information was XXXX XXXX XXXX XXXX XXXX XXXX XXXX. 
XXXX, CA XXXX Tel:XXXX ) XXXX XXXX I went through the quotation process with client ( XXXX XXXX ) and he sent me a purchase order for products that were needed for his business. When I received the purchase order I processed the purchase with Square inc merchant services using their terminal application. XXXX had provided all relevant credit card information with the purchase order. In order to get transaction approval from Square using terminal data entry on my PC you must enter the credit card holders name, card number, expiration date, code on back of card and mailing address zip code. After that was done I did get approval for the transaction. 
XXXX sent me two more purchase orders over the month of XXXX for additional equipment for his business. After the 3 purchase order I received a call from the secretary of one of the actual credit card holders claiming they did not authorize the purchase. I in turn asked her to e mail me and I called Sqare inc customer service to authenticate her position. 
That was XXXX XXXX about XXXXor  XXXX XXXX. I failed to get the ladys name at Square. however they tell you they record all phone calls as a mater of record. I asked the lady if the card was in the name of XXXX XXXX XXXX XXXX she looked at her terminal and told me the name was incorrect and the card actually belonged to XXXX XXXX XXXX. At that point I asked if the name field in the authorization process for the transaction was part of the authorization process confirming a legitimate transaction. She said that a name must be entered into the terminal form but it is not checked for accuracy or validity to process the transaction. 
This lack of correlating a valid name with all other credit card information at the time of transaction approval threw the terminal approval process is why there is credit card fraud on the Square inc merchant services platform. As merchants who consume merchant credit card services from a third party to authenticate valid credit card transactions it is crucial that they use all data provided to authenticate charges. To not confirm the name on the card is aiding and abetting credit card fraud by criminals. 
I would also note that Square inc has had 2,999 complaints in last 3 years 1,506 complaints in last 12 months. They are not accredited by the XXXX XXXX XXXX  in XXXX XXXX. 

There is always a persons name or company name associated with all credit cards or debit cards. There could not be a valid card with out a owner of the card, individual or business. 
As a merchant I rely on my credit card processing company to authenticate the data I provide for a transaction so I do not incur credit card fraud from criminals. For Square inc not to confirm the card holders name on transactions at the time of a terminal transaction is irresponsible and could be considered criminal since they are helping criminals process credit card fraud on their processing platform. The Merchant services provided by Square inc is my last line of defense against credit card fraud and they have failed to protect me from criminals that commit credit card fraud. 

If Square inc would have checked the names on the 3 transactions I had with XXXX XXXX XXXX XXXX they would of denied the transactions as XXXX had put his company name in place of the real credit card holders name. The total approved on all 3 transactions is XXXX. Also note that Square will not reimburse their 4 % processing fee on bad transactions. They are profiting from bad transactions and making merchants pay for their lack of proper authentication of transactions. 

I have substantial e mail, purchase orders, invoices, packing list and relevant data for each transaction that was fraudulent. I have attached all 3 PDF files for the transactions that were frodulant. I live each day in fear of Square inc attempting to blame me for what they did wrong. The name on the card is relevant and should be part of the authorization process, especially when it is provided threw terminal transaction process. If they would of checked the names on my 3 transactions they could of stopped credit card fraud in this case. 



XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX XXXX XXXX, ohio XXXX XXXX office XXXX cell XXXX http : XXXX

Company response to consumer: Closed with explanation