Hi @RosalieNewYork,

Sorry to hear one of your customers filed a dispute with their bank. That's what it sounds like happened here.

Ultimately the customer's bank makes the decision on who wins or loses the dispute and if it's a chip card that isn't processed in a chip reader- we are offered no recourse for those disputes.

We will reach out by email though to inform you of the dispute even if it can't be challenged as well as show the notification on your Dashboard.

As mentioned above- there are no contracts with Square.

I got that part, however I would assume there would’ve been some heads up from the square! The problem here is that a “dispute” as I understand it, means two parties disputing, not taking someones word for a fact and not even asking a seller, let alone investigating, but  just informing that the money will be taken from your account! 
Contract, agreement, I don’t know, anything my using of square is based on?!

You are notified in your Square Dashboard of any disputes.  If the Chip card was dipped at your store, then the customer's bank will ask Square for supporting documents, and then Square will ask you.  IF there is a Chip card that is not dipped at your store then the customer's bank will not ask for any additional information as the card was not processed securely and will ask for a charge back of the funds from Square, and they will have to comply with the request as the liability shift is on the Store owner and no longer on the credit card companies.

As for a contract, there is nothing.  You can walk away and nothing will happen and you will not be charged anything, or you can keep processing as you were before.