Questions & Answers

Merchant Account and Credit Card Processing Q & A

Trying to find a great credit card processor for your business? Check out the Recommended Processors page.

Scroll to the bottom to ask your question.

Permanent link to this article:


Skip to comment form

  1. Gladys Brierley


    I have been having some strange luck lately. After 12 years of never having a charge back on my pay pal account, a woman successfully committed theft of services in spite of my iron clad contract and tons of proof the services were provided according to the terms of the contract.

    Then I signed up for the Square, used it a couple of times with no problem then all of a sudden I get hit with a huge list of additional credential verification even though I operate a fully legal LLC and all this in the middle of an important transaction with a client. They have the clients money and I don’t have any way to deal with it, since I disagreed with their credentialing terms even while complying and they made a decision to deactivate me probably because of this one charge back and also my disagreement.

    I believe they waited to get me on the hook and then they forced me into providing confidential bank statements and wanted me to provide transaction details even though they already had them. I was not going to provide my contract as the details of the services were listed in their and that was very confidential. However I did give them communication with the clients credit card number. I cannot believe this company is still in business after all the reviews that are so negative. I am really feeling hoodwinked and at a loss of what to do at the moment.

    Any advice? I cannot use their nifty pass code to call them it is expired and they have not provided another and I cannot refund the customer myself because I cannot use the site. I probably should make a formal complaint to someone in the federal government who overseas this industry.

    I have already posted on Twitter which I learned was founded by the same person not sure if he is still a major shareholder.

    The fact that they do not want emails or phone calls except under their terms and control tells me that they are not consumer friendly and won’t probably make it to the Forbes best companies list any time soon.

    I don’t know what the client will do and this is a good sum of money for a small business person like me.

    1. Phillip Parker

      Hi Gladys,

      Unfortunately, Square’s agreement with which you agreed when using their services and is legally binding, allows them to further verify your identity if you are running transactions that flag their risk algorithms. It also allows them hold your money until they deem that it is safe to release. Refusing to supply the documentation they requested has likely complicated the matter, so the quickest resolution will be sought by complying with their request. An attorney may be able to accelerate the process, but it may be cost-prohibitive to do so. Best of luck to you!

  2. Tina

    Can a vendor not ship a paid item or offer a refund if their credit card processor has put a hold on their funds?

    1. Phillip Parker

      Hi Tina,
      In most cases these decisions are up to the vendor, not the processor. If the vendor’s funds for the transaction are being held, it may choose to wait for the funds to clear before shipping an item. This is understandable as it is in vendor’s best interest to make sure that the funds will ultimately be released prior to shipping the merchandise. Generally speaking, a vendor can issue a refund on held funds. However, there may be cases where this is not possible because fraud is suspected.

  3. Janice

    Can square be used on multiple phones for the same account? Do all the phones used need the same app downloaded and registered? This is for a school store where different volunteers work on monthly schedules. What would be the best card reader to use for this environment?

    1. Phillip Parker

      Hi Janice,

      Yes, the same Square account can be used on multiple phones. The volunteers will just need to sign-in with the account used for your store. However, this method is not recommended as it can lead to problems with volunteers accidentally charging sales for their own business to your account because they forget to log out of your account. Square also doesn’t separate the login credentials by user, so it can be difficult to track which volunteer charged particular sales. If you have a need for multiple users, it is best to use a service that allows you to issue unique login credentials for each user. Here is a list of providers that may better suit your needs: Best Credit Card Processing Apps For Real Businesses

Leave a Reply

Your email address will not be published. Required fields are marked *