Square Will Hold Your Money
Thanks to its convenient setup and ease of use, Square (also referred to as “SquareUp,” “Square Up,” or “the Square”) has become a dominant player among the top mobile payment processors. This convenience comes at a cost, however, as the company skips traditional underwriting procedures in order to offer its no-frills application process. This policy has resulted in an explosion of merchant complaints related to Square holding funds and sudden account cancellation by Square’s fraud prevention team. To compound the issue, Square does not appear to have the customer support apparatus in place to respond quickly or effectively to merchant concerns.
Prevent Square From Freezing Your Account
In order to receive your money on time and avoid dealing with Square customer support, you should take steps to prevent Square from freezing your account in the first place. But what are those steps? We’ve covered them below.
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Best Six Ways to Avoid Square Holds
1. Understand Square’s Reserve Policy
The Square legal agreement is clearly provided on the company’s website, but it takes some digging to get to the most important information in this document. Article 13 of Square’s Payment Terms (excerpted below) describes the Square reserve policy.
Square’s “Reserve for Holding Funds” Policy
We may withhold funds by temporarily suspending or delaying payouts of Proceeds to you and/or designate an amount of funds that you must maintain in your Square Accounts or in a separate reserve account (a “Reserve”) to secure the performance of your obligations under any agreement between you and Square. We may require a Reserve for any reason related to your use of the Services. The Reserve will be in an amount as reasonably determined by us to cover potential losses to Square. The Reserve may be raised, reduced or removed at any time by Square, in its sole discretion, based on your payment history, a credit review, the amount of any arbitration award or court judgment against you in Square’s favor, or otherwise as Square or its processor may determine or require. If you do not have sufficient funds in your Reserve, we may fund the Reserve from any funding source associated with your Square Accounts, including any funds (a) deposited by you, (b) due to you, or (c) available in your bank account, or other payment instrument registered with us. You grant us a security interest in and lien on any and all funds held in any Reserve, and also authorize us to make any withdrawals or debits from the Reserve or any bank account linked to any of your Square Accounts, without prior notice to you, to collect amounts that you owe us. You will execute any additional documentation required for us to perfect our security interest in any funds in the Reserve. This security interest survives for as long as we hold funds in your Reserve.
To summarize, Square reserves the right to suspend or delay payouts to you at its sole discretion, for as long as it deems necessary. The agreement is so extreme that it allows Square “to make any withdrawals or debits from the Reserve or any bank account linked to any of your Square Accounts, without prior notice to you, to collect amounts that you owe us.” This provision is not listed or described prominently in the company’s standard advertising materials, but is responsible for nearly all Square merchant complaints about holds placed on funds.
Keyed (Card-Not-Present) Processing Limit
Until November 2013, Square enforced a processing limit on card-not-present transactions. The company would allow a merchant to process up to $2,002 in manually entered (non-swiped) transactions during any rolling seven-day period. Any amount above $2,002 that the merchant processed would be placed in a reserve fund for 30 days before being paid out to the merchant. Square provided no warning when merchants were nearing their $2,002 limit, which meant that merchants often exceeded it without knowing. Square has since eliminated this policy, and the company now claims that merchants can process any transaction type or amount without having to worry about a processing limit. However, this does not mean that the company has stopped holding funds.
The Algorithm Rules All
The current reserve policy operates with a greater degree of unpredictability because there is no explicit limit set on the account. Square’s reasons for withholding money (and methods for calculating the proper amount) now boil down to undisclosed algorithmic risk factors. There are numerous reports of Square’s automated systems placing sudden, long-term holds on merchant funds without any clear way for a merchant to release the funds. Many merchants report holds being placed on perfectly legitimate swiped transactions. This policy is one of the most worrisome aspects of Square’s service at this time.
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2. Ensure Your Business Type Is Not Restricted
Square does not allow certain high-risk or illegal business types to use its service. However, Square’s simple signup process does not screen out these businesses ahead of time in many cases. These merchants are allowed to process payments freely until Square’s fraud prevention team determines that the merchant’s business type is restricted, at which point Square usually freezes the account. This leaves the business owner twisting in the wind while they await a final ruling from Square’s customer service team.
Square May Not Be the Right Fit for You
Until Square establishes a rigorous screening process, merchants can avoid this scenario by checking their business type against the Square service agreement, which lists restricted business types. We have also included this list below as a convenience. If your business operates in one of the following industries, you may be better served by a high risk merchant account specialist.
List of Square Prohibited Business Types:
(1) any illegal activity or goods, (2) paraphernalia that may be used for illegal activity (3) buyers or membership clubs, including dues associated with such clubs, (4) credit counseling or credit repair agencies, (5) credit protection or identity theft protection services, (6) direct marketing or subscription offers or services, (7) infomercial sales, (8) internet/mail order/telephone order pharmacies or pharmacy referral services (where fulfillment of medication is performed with an internet or telephone consultation, absent a physical visit, including re-importation of pharmaceuticals from foreign countries), (9) unauthorized multi-level marketing businesses, (10) inbound or outbound telemarketers, (11) prepaid phone cards or phone services, (12) rebate based businesses, (13) up-sell merchants, (14) bill payment services, (15) betting, including lottery tickets, sports related gambling, casino gaming chips, off-track betting, and wagers at races, (16) manual or automated cash disbursements, (17) prepaid cards, checks, insurance or other financial merchandise or services, (18) sales of money-orders or foreign currency, (19) wire transfer money orders, (20) high-risk products and services, including telemarketing sales, (21) automated fuel dispensers, (22) adult entertainment oriented products or services (in any medium, including internet, telephone, or printed material), (23) sales of (i) firearms, firearm parts or hardware, and ammunition; or (ii) weapons and other devices designed to cause physical injury (24) internet/mail order/telephone order of age restricted products (e.g., tobacco), (25) occult materials, (26) hate or harmful products, (27) escort services, or (28) bankruptcy attorneys or collection agencies engaged in the collection of debt.
3. Anticipate Sudden Increases In Processing Volume
Although unexpected growth can be exciting for a business owner, it can also trigger fraud protection measures if it occurs without any prior notification to Square. According to many Square complaints, merchants are at risk for account freezes if their transaction volume increases dramatically and without warning. Square may interpret a sudden surge in payments as a sign that these payments are are fraudulent or subject to dispute by customers, regardless of whether they are legitimate transactions. Additionally, an inexplicable increase in transactions may also be an indicator that a merchant has started to operate outside of its stated business type.
Contact Square While You Still Can
As stated in its reserve policy, Square alone gets to make these assessments and establish a reserve of any amount at its own discretion. Merchants are advised to alert Square via its help center if they anticipate a sudden increase in transactions that deviate from their normal sales patterns. Examples of predictable increases may include periodic flea market participation, occasional trade shows, annual fund raisers, and other special events that are atypical of normal transaction behavior. If these events are common for your business, you might consider using a seasonal merchant account.
4. Monitor Your Average Ticket Size
Your average ticket size may fluctuate independently of your processing volume, but dramatic changes to either can affect Square’s funding of your sales. “Average ticket size” refers to the typical dollar amount of an average sale for your business, which Square seems to calculate over time as you establish a sales history. If your average ticket size suddenly increases, you may be at risk of being flagged by Square’s fraud prevention team.
Average Ticket Is Not the Same as Processing Volume
Average ticket size can fluctuate even as processing volume stays the same or decreases, so it can be difficult for merchants to monitor. For instance, if a merchant sells $1000 worth of goods through 20 sales of $50 in an average week, then that merchant’s average ticket size is $50. But if the merchant sells the same total amount of $1000 in an average week but through two $500 transactions, then that merchant’s average ticket size has increased by a factor of 10 out of seemingly nowhere. This sudden change in the typical sales amount would likely be interpreted as suspicious activity by Square risk assessment systems. Square is not a recommended merchant account provider for high volume businesses in general, so if you anticipate a sudden increase in your average ticket size, notify Square ahead of time.
5. Notify Square Before Processing Large Transactions
Sometimes you know ahead of time that you will process an amount well in excess of your typical High-Ticket history. In these cases, it is a good idea to contact Square and alert the company of an impending large transaction. These surges may be in relation to a large one-time event or a seasonal shift but it is always best to let Square know before it happens.
Help Square Understand You
By informing Square, you can help flesh out your processing profile with Square and help the company understand why a large transaction is occurring. In general, transactions over $500 are at risk of being flagged by Square, especially if you rarely charge anything over $100. If your business typically has high-dollar transactions, be sure to notify Square of that before you begin accepting payments and remain aware that anything that that greatly exceeds your normal high-ticket pattern may flag a hold.
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6. Prevent Chargebacks
A major cause of account freezes appears to be an increase in chargebacks for a merchant. Square will often establish a reserve account to mitigate fraud risk and to help pay for the associated costs of chargebacks. Square may increase the size of this reserve account and/or terminate your account if it anticipates future chargebacks.
Best Practices for Chargebacks with Square
There are several practices that can help merchants avoid chargebacks, such as disclosing all applicable fees; ensuring that the amount charged matches the price advertised to a customer; ensuring that their business name and address match those that customers will see on their statements; delivering goods or services in a timely fashion; and making it easy for customers to cancel any recurring billing. Failure to follow these guidelines may lead to customer confusion and provoke a chargeback. The procedure for contesting chargebacks can be strenuous, costly and convoluted. Merchants are strongly encouraged to avoid chargebacks whenever possible.
Beat the Machine
Now that Square has cancelled its keyed-in processing limit, it appears that algorithmic risk factors are the main cause of merchant holds. This means that you need to consider what will cause Square’s system to flag your account. By monitoring ticket sizes, sales volume, and chargebacks, can help you avoid a long-term, costly Square hold.
If you have any advice for how to prevent Square from withholding your funds, please share that information in the comment section below:
About Phillip Parker
Thank you for reading my review. I hope that it has helped you with your research.
Why I'm Qualified to Write About Credit Card Processing and Merchant Account Services
I'm a former credit card processing sales director who left the industry because I didn't like how it takes advantage of small business owners. It feeds like a leech on businesses and thrives by imposing fees that are nearly impossible to comprehend. Seeing a need for change, I left and built this website help business owners better understand the industry, research merchant services providers, and get refunds of excessive merchant account fees. My experience of working "behind the curtain" in the industry, and using that knowledge for good, has resulted in millions of dollars returned to hard-working small business owners as well as enterprise-level companies.
From the time that I starting working in the merchant services industry to when I left to create this website, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this "insider" knowledge to myself. To lift the fog, I've reviewed hundreds of companies, read thousands of user reviews, and learned the pricing tricks of every provider. If you have questions about credit card processing, you can find the answers on this website.
Square is currently holding 85K in my money and has been an absolute nightmare to deal with and contact!
I can’t pay my bills and they are really screwing me right now!!
What can I possibly do??
I want to be added to this lawsuit if one is going on. I am a apparel business and before I signed up with square I was told if I receive a payment that the funds would be made available to deposit right away. My customer needs this order for a certain day and the only way I was able to do this is if my order was submitted the day I was paid. By being told that I would have the payment I had them send the payment through square. The payment went through fine but when I went to deposit into my account I was told my account is now under review. I reached out to them and was told my issue was expedited and it would take 3 hours for the review of my account to be done and that once it was I would be able to transfer my funds. Once again another lie, my account status hasn’t changed 24 hours later. I spoke to there chat team about 5 times now and get a different story every time. Its funny to me how they are so quick to take their fee out instantly but want to hold my funds. The on top of it when I was told I would have my payment released in time I told them that I want to refund my customer then and I was told that I could but it could take up to 14 days for them to get it back. 14 days? I am most likely going to lose this customer who is a new customer because of this. I will never again use square and suggest noone else does. My email is [contact information not allowed] If there is a case going on I want to be involved in it.
We had been a Square customer for years and within a 6 month period of time between September and April we racked up over $600K in charges for a client of ours. When we had a parting of the ways with our client, he disputed over $65K in charges alleging he didn’t received what he paid for. $35K were through Square and the balance through American Express Merchant Services. When we provided documentation to Square and American Express the client lost, he came back again with the same charges stating that we misrepresented our services to him versus not receiving what was promised. We finally won back all of the charges from American Express and most of the charges from Square. In the process of the client making these erroneous claims, Square closed our account. They had promised to release the funds on October 23rd and to this date we still haven’t received anything with no promise at this juncture after multiple attempts to contact someone with a number that does nothing and emails that go unanswered. This behavior is nothing shy of criminal. If we conducted our business this way we’d be behind bars. Find another solution for your companies’ charges, DON’T USE SQUARE!
Thank you !!! I have a wholesale diamond and jewelry business . I strictly buy overseas and sell to smaller wholesalers. I also intend to start selling retail. The amounts in my business range so dramatically that in one day I could sell a a piece for $100 and hours later $5000.. Being wholesale it’s not often that I receive credit cards, especially on $30-$40k or even more. After my due diligence and reading your remarks I’m positive you saved me from a devastating nightmare. Between the fact that there’s no oversight , no standard timeframe as to how long your money can be held and most importantly no telephone customer service I would be out of my mind to go anywhere near this company. I’m my opinion they will sooner or later have serious problems. Actions like this could cost someone their business .
After being a Square Up customer for nearly 4 years for my Reiki healing and coaching business, (I am a former surgeon) I finally booked my first long-term coaching client, another physician for one of my 12 week clinical programs. My client promptly paid her $4999 invoice. Well, you know the rest of the story…Square deactivated my account and put a 90 day hold on my funds. I do not owe Square a dime. Unbelievable! Seems criminal. I have never had charge back or any other issue with Square. Now the silent treatment. Please add me to the list for the class action law suit.
Did u ever receive your money after the 90 days I’m in the same situation
I just started my coaching business and had my first client pay $2,997 which he paid with a credit card through my square set up.
Instead of depositing this amount to my bank account or debit card, both of which they had successfully linked, they have unilaterally decided to deactivate my account and hold my money for 90 days!!
This is a large amount of money that they just take ftom me for no reason.
How can they legally do this?
Can anyone help?
I need that money and a way to collect money from my clients.
This post will help: How to Make Your Payment Processor Release Your Money
-Phillip
This establishment is horrible. Started a personal training business on the side and clients prefer using their card so after the session I charged them for the full 2 months of training. First one was for 87 for the intro and 190 for one time a week. They placed my account on hold for 3 months! I won’t see it until January! When you work for what you deserve you should get paid F that square doesn’t care! Emailed and tried calling and nothing. Count me in on the class action law suit! This has to end now!
My family small business has been using square and they out of no where suspended our account. There are over 11,000 dollars associated with this account that they won’t deposit. My parents need this money that was paid by our customers to be deposited. Without this money we cant pay our rent or services. When I try to talk to someone on the phone I cant get a customer service representative on the phone. I have sent countless emails trying to get this problem resolved and no one responds. I have read online that this same situation has happened to countless small business. I urger other people to be careful and and not trust in this company. I really hope that I can get this resolved. Our small business really needs our deposits.
This post will help: How to Make Your Payment Processor Release Your Money
-Phillip
My son operates a k9 training business. Recently had a $75.00 payment from his client placed on hold.
This is absolute bullshit for Square to do this.
I sell my artwork and a fellow artist recommended Square. She stated she’s never had an issue. Fortunately for me, the clients all have paid in cash, so no issues. However, my son was looking for a convenient way to sell his k9 training packages, etc. While $75 won’t destroy him, it sure has inconvenienced him terribly.
Looking for suggestions on how to get his money or join others in a classaction lawsuit.
Thanks. Ray Bush
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-Phillip
I also had a payment taken by square for a problem they made. I am going through another merchant threw my bank and it’s a lot easier cheaper and safer. Square takes and cares about their pockets only.
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-Phillip
Square is holding $160 us hahaha the first payment and they hold it 3 days in using square I send the info they ask to hope they deposit my money i think all payment processors are a scam or anybody recommends another platform? that is not PayPal. i am a freelance photographer (also Stripe is a scam i just received a payment of $100 and the hold it so i just refund the money back and the client just deposit to my bank acc)
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-Phillip
I just signed up with square and yes the process was very easy. I am an independent consultant and I just had a client who paid me 2k for my services. Everything looked fine until I got an email saying my account deposit is sespended. Im sending in my documentation tomorrow but from the looks of it and reading all these bad reviews. I may be screwed!
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– Phillip
I wish I knew all of this before I chose square now I have 4000 in my hard earned monies on hold I own a moving company and really need my money this may end my company
This post will help: How to Make Your Payment Processor Release Your Money
– Phillip
They hold my $1000 and asked me for a three months bank statement .
I am doing limo business
For 5 years now. But they hold my money and asked me a lot of questions. What should I do? Thanks
This post will help: How to Make Your Payment Processor Release Your Money
-Phillip
This is not an ethical business practice. They hold our money under the assumption that the transaction could be fraudulent. There is no reason for this practice considering all electronic transactions are insured through a federal regulation “ Regulation E”. This is what a bank files when you call for fraudulent charges on you debit card account. They claim to hold our money in case of a chargeback and the bank not being to recover those funds. That is ridiculous. That’s why banks have insurance hence why armored car officers are told not to engage when a robbery happens because the money is insured. All the equipment is supposed to be a deterrent. When your a small business and they decide to hold $ 8000.00 that becomes very detrimental to our business. It is time for citizens to have protection from bif banks. I wish all those who are struggling these problems good luck
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– Phillip
It’s time this company gets hit hard and the only way that is going to happen is if enough people file with the FTC and government organizations that regulate credit card processing. And everyone group together with a good attorney. I can’t believe some of what I’ve read about this horrible company and the lack of respect. No customer service, destroying hard working business owners lives!
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– Phillip
Square has deactivated my account out of nowhere, over my first transaction. My transaction was approved by my client and I keyed in an amount of $519.00 for commercial art services. I provided all my business info to Square as asked and deactivate and want to hold my funds over 90 days! I am outraged. We should all band together and stop this. This is not fair. When you try to talk to customer service they don’t do anything. This affected my business, and are playing with people’s money!
From The Editor
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They have done the same thing to me!!! $2,900 they have on “hold” I had a disputed charge that my client did in error and called her card company and had the chargeback reversed immediately!!! They have been holding my funds for over a week now. I have sent in everything they have asked!!! We need to put a stop to this!!!!!
This post will help: How to Make Your Payment Processor Release Your Money
– Phillip
Square has withheld my funds; and haven’t responded to any messages or emails regarding the matter. It’s been over 10 weeks with no answers.
From The Editor
This Post Might Help: How to Make Your Payment Processor Release Your Money
I received an email from Theodore in square recovery that said I owed them money , the case is closed , and that is their final decision. “ after 6 years with no issues what so ever . I was blindsided with this . And I kept asking for what? I could not get an answer but they were holding 799.00 and saying I had to make a payment of 194.74 . Finally I got another email from him stating that I have 2 accounts, an email @[email protected] and his decision is final and I knew someone from 2014 that had a Fountain of Youth ( I just opened a Fountain of Youth Laser Spa llc actually just changing the name as my current one someone at the same bldg has the same name addy etc) long story short , a different Fountain of youth in 2014 with a different title , ein etc .
And because I knew them ( I had nothing in the company . Nothing) I have to pay their debt he did not let me have a voice , he laughed at me when I asked why he was so rude and slanderous, I asked to speak to his supervisor, to which he stated, I am the top of the line” I asked: who signed your checks? Theodore : google it! And hung up on me.
I repeatedly sent emails of my never having any involvement as well as. Documentation for the last 10 years . I made repeated phone calls because I am NOT paying someone else’s debt , he refused to speak to me on the phone , nor would he elaborate on any details . It was as if he said it, it’s true . Case closed . That’s exactly how it went, and within 2 days it went from them saying they are due 194 amount to him trying to take 705.00 out of my bank acct at 3am yesterday morning. I feel so violated I have literally been sick to my stomach for 2 days because I felt that he felt he was judge, jury and hangman bc he said so!
I have a good reputation , integrity and I am honest to a fault . I didn’t work this hard to have some trumped up fraudulent accusations that makes NO SENSE and no weight ! And here I am paranoid that they will just take money at random I did delete my square account . I filed a report with consumer relations as I will Atty general, BBB, and any other institution I can find . I am also going to file a fraud report against them, not 1 single person came to my aid.
Shaking my head and still in shock for him to act so Omni -Potent and trying to force me to someone else’s debt! So unethical and he acts like he has free rein and power wo accountability! How can this happen ?
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-Phillip
Square has my money too! Add me to the list!
From The Editor
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Square has withheld $2500 they wont deposit and i have contacted the with no response. They are the real fraud please count me in this law suit [email protected]
From The Editor
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They are doing me the same way 1300.00 they are holding and I have sent in the information. We have NEVER had a charge back. Just because someone called in an order and I entered the card #… CRAZY… Please add me to the lawsuit. I am ALL IN!! THis is our business. I can’t even place orders. We had 16 orders on Saturday and they have been holding our funds since Thursday.
From The Editor
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I run a business and square asked for identity clarification, ive been using them 3 yrs no issues.. and I sent in 6 different documents that were asked for. Today I get a “account deactivated” so there are 2k in outstanding deposits.. how is everyone getting there funds?? Do I refund and take payment elsewhere?
From The Editor
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Square has taken $1,078.00 in credit card charges from my customers and has not reimbursed me since June 4th, 2018. They lack in professionalism and customer service, they have no customer service. They just tell you your account is inactivated after you have been using them for almost a year because of some technicality in their terms and conditions that they have just now found that they can not do business with a company that sells knives. Fine, discontinue my account but give me my money, my customers money that they trusted was paying for the purchases that they made. Square can not be trusted, nor can they be accountable for the service that you pay for.
From The Editor
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We need to set up a class action against square. This is criminal behavior. They say we are high risk using square is the real risk!!
From The Editor
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Square has held over 400 of my money too. I’d like in on this civil suit if one is being created. [email protected]
From The Editor
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I agree, Square is holding over 1,000.00.
They have deactivated my account because I sell essential oil and herbal blends. Woo- scary
When I demand my money they suggest that I “refund” my customers.
What? I can’t give back something I haven’t received.
Nor do my customers want to give me back what I have sold them.
They also told me that I have 120 days from the transaction date to do so through them. What ? So they plan on keeping my money?
Thieves, robbers, crooks!
Help!
From The Editor
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Square is lame. They are withholding my funds as well. I wouldn’t mind a class action lawsuit against them.
[REDACTED – personal contact information]
From The Editor
This Post Might Help: How to Make Square Release Your Money
Yes they withheld a finale wedding payment over 7,000.00
Small flower shop doing a large wedding I need my funds to operate.
I faxed in 10 documents veriifying everything they asked for ..no word
Has any one had their client dispute the charge on their visa and or I can hit the refund button??
And have client write a check
Or is this all stuck up in there mess.
Thanks for any advice Cheryl
From The Editor
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Same story….. would any would anyone like to jump on this civil suit maybe we can shake them up to releasing our funds!! 1900k in sales!! [email protected] we need to take action!! There is some leaks here they need to be plugged so no one else is drained!
From The Editor
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Yes! I’ll
Jump
I’m on the civil suit! Same thing is happening to me right now and I need the money in order to do the job as it is a deposit for the materials on a job!
From The Editor
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I am a small business owner who has been paid through square transaction but square are holding my money. they told me to read and fill out a form. I completed this and I have not heard anything back. I have 3 kids to feed and am relying on this money they told me they have suspended my account and are holding over $9000 I cannot continue running my business i cannot afford to pay my rent and I am now about to be evicted from my home. Square have impacted my life dramatically as a single father off 3, Since this has occured I have started seeing a psychologists I am Suffering anxiety and Depression I am trying to be strong but How can i be when my kids are saying dad im hungry. 8k is alot off money to hold from a family that has nothing. Could anyone please give me any advice on how i can get my money from square.
From The Editor
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I’ve been trying to get my money since April 39, 2018 & still can not get my funds or help from square on resolving this issue.
They withold illegaly 9k of my company. Please help me. my email is [email protected]
Square is horrible. They should reserve a certain pool of money from every sale instead of killing small business owners.
So add me to the growing list. I do construction consulting contracts.
Various amounts $5k-25K
First 10 transactions go through without too much issue and delay.
Then the security message.
Then without any other notification, permanently close my account and threaten to withhold $22K of my money for 180 days ++ – it’s left my clients credit cards, and wasn’t withheld or flagged on their end – and I don’t have it 5 days later (so far).
Tried their email system “1-3 business days for a response”
Tried their phone system – not taking calls currently
Tried their online vendor community – have to sign over my personal information and rights (no thanks).
I’m going to have my lawyer draft a letter $350 it will cost me tomorrow, to ensure I have a response within a week.
Wondering if anyone has started a class action against SQUARE yet?
If so, respond to this thread please.
I have contacted Square multiple times via their support portal. Opened 4 tickets and still no response. It has been more than 90 days since they deactivated my ability to process transactions after I made a $3000 client credit card swipe payment and my funds are still not transferred to my account. I cannot call & they are unresponsive to emails. This is borderline theft!
I am a student trying to setup a small online business. I have been a square customer for over a year and have done about 15-20 transactions during this time, i usually send the customer a request to pay and now all of a sudden square takes my $1,150.00 and says they have limited my account and are deactivating it as i am a high risk customer. I understand it isnt a huge amount, but as a student i need to keep a tight budget. So i basically sold products and then took a loss of nearly $ 2000 as well, they’ve got no idea how much it hurts as a student.
I will never return to them again and have gotten 8 of my friends to deactivate their accounts with square and move elsewhere. I just hope they give me my money after the 90 days on 30/01/2018; as i cannot go telling my previous customers that i’m going to refund the payment please pay me again after they received the products. what kind of impression that create for the business. shitty company. Never recommend it…
I’m actually going through the same thing now. I did everything no luck. I even contacted the BBB
So what was the outcome. Square all of sudden has 3k of mine and the system says it will deposit the next day always. This shit is criminal by square. It’s. It thier money they are holding
From The Editor
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Same here on almost $9500 they are now holding for 180 days after they “deactivated “ my account. No change in processing at all. Customer service is non existent. This will end my business and I have no avenue to turn to. They are crooks!!!!!! And are ruining my business and personal life. I cannot wait 180 days for my funds to be deposited as it will ruin me and they don’t give a crap. Didn’t even get a response when I let them know I needed to speak to accounting as I am suicidal over this and will commit the act on social media with them to blame.
I have a pending deposit of $57.66 and it has been pending deposit since March 2017. So I have been waiting for 8 months to get my money. I have never been able to call for support. The emails they send in response to mine are no help at all. HELP!!!!! How do I get my money?!?!?!?!?!?!?!?!?!?!?!?!?
They are just complete suckers. let u sign up so easily, process your first transaction, later on follow up with a email telling to verify your account. Why would’nt they do that in first place at the time of signing up? Just took order from my cx, process transaction for a small amount 85 USD, 2 hour later got an email :(… if you are a starter, save yourself from aggregators like square, stripe, paypal, otherwise u can expect a heart attack when u get that mail…
Same story they have 3k of my money and the payout keeps saying pending and date of release said today the 16rh now I looked no money and says the 18rh…. has anyone gotten their money back from these people ? And I’d so how long did it actually take ? I have been waiting for a month. J am going through a divorce and I need my money ! Now
I would not trust this POS company as far as I can throw them. Without any warning and without any reason these aholes locked our account. We had small transactions not alot of them, under $20, 2 a day. Within a week Square locked our account, deferred deposits, until they so called “verified our account”. Mind you we have no chargebacks, didn’t charge up $100s of dollars in merchandise, nor did Square know that we were selling any type high risk items, not that we were doing that. So Square is nothing more than another WePay, PayPal, or any other wanna be 2nd rate processing company.
We learned all too well from dealing with PayPal, that once an account is limited it says that way. So Square basically did the same thing. These Aholes screwed us over on 3 days worth of sales and 2 dozen customers because I wasnt going to play Squares BS games into requesting all this information including private information just to come back to us and give us some old generic BS message that will basically come back with BS saying “oh your high risk your staying closed” The only reason why they ask for that information is so that if they get a chargeback from a customer you charged and Square stole, they will try to send a collection agency after you. Just refund the money, give square the middle finger and leave. Dont bother with these crooks. Had no reason to limit our account/defer it, didnt do any large volume of transactions, all are information was legally correct and verified when we opened the account and wasnt doing anything suspicious and yet these MFers, still locked the account.
What strikes me as funny is on the FAQ about deposits it clearly states Square will not hold fund for any reason. Yet they still held mine. Look it up. You’ll see.
They are the worst company to deal with. Their customer service is very poor, untrained and they all seem like they just want to get you off the phone immediately upon asking questions about their company. Any transaction that is over $100 they automatically put you account on suspension and hold the funds for 90 days plus. I don’t understand why they would screw over their customers in this way. They deserve to go under. I would not recommend square to anyone and would look for other pos systems to use for their business. Very unprofessional.
Square card is a crook I’m a hard working single parent they have held over $2000 worth of my money I can’t talk to a live person I can’t wait to get on a lawsuit against them I’ve tried everything changing accounts debit cards nothing is working it was going good then I had a surged in business at my gym and can’t get a dime of my money!! What’s sad is I assist cancer patients with some of these funds
The same with me. This is one of the numerous emails I sent them:
Hello my name is Maurice Webster and I was wondering what’s happening with my deposit! I emailed you numerous times and never got a response. I went thru the dispute process for 90 days and it was ruled in my favor. It was $450. I changed my bank info and debit card info and input it in the system and I’m waiting for the funds in my favor and I still have not received it yet. Please let me know how can I resolve this? I just want my deposit and get on with my business. Let me know thanks. I’m with Wells Fargo. The funds were on hold and released on September 17, 2017. I’m still waiting now.
Have you heard anything back yet??
Add me to the list. $2,000 held with no notice. They say 90 days. For some reason they seem to not care how many small businesses they hurt, some fatally. Money is more important than doing the right thing.
If nothing changes, I will make it my mission to bad mouth Square every chance I get.
I just signed up with Square 2 weeks ago. Im already at $2000. My account is in review but after reading these reviews, Im getting scared, I may not ever see my money. How do these clowns stay in business???
Square up withholding my funds $1990 Aud sale and closed my account.
In Australia I’m a registered tax paying company director of my family trust that holds property, that is funded from escorting and sex work. In the state of NSW Australia my occupation is completely decriminalised.
I want the same legitimate recognition for my legal profession from Square up, PayPal etc
Paypal just put a hold on some of my funds, you just answered my questions about Square doing the same thing. Are there any payment portals that do not do this?
Thanks in advance!
Cheers,
Brett
Square just closed my account and said they will reserve MY MONIES FOR 180 DAYS because my customers paid with prepaid cards i live in Cleveland ohio credit is not a thing many have prepaid is the majority. The terms say i can be reserved for seeking prepaid not accepting wth. Many business is geared towards low to moderate income households.
I have a 960 sale pending for 3 days still no answer can’t talk to anyone I have had no problems till now ……..when will I receive payment please help
I sent myself 946.00 tonight to buy a vehicle and they put a hold on it how long did it take them to release your funds I’m very upset I have never had one issue with square cash in the past till this and at the worste time it happens when I’m car less also did u ever get a phone number to contact someone by phone or is it just email only???? Thank you
I can’t get two payment of $200 paid to me due to error messages saying I have to contact customer support to reset my password yet only receive emails from customer support saying do you still need assistance or have you found the answer to your question; I attempted to enter my bank routing number and it tells me it is wrong, yet it is absolutely correct. Then I start over and it gives me this frustrating message that I have to contact customer support., The” Customer support” icon does not provide any answers to problems, just simple instructions on how to use the account (which does not work!) Very Frustrating! They still have my money.
You are Lisa they did samething with me. I called many times and they are asking for Customer code which I provide and now they are telling me your customer code is invalid because your account is deactivated. I am preparing a law suit against them as it’s clearly a violation of their own terms. Redicolous company and their stupid rules.
I had the same issue with Robert. I provided all the documents what they need, and they deactivated my account. Its bullshit. We provide services for our customers. We booked them hotels and rental cars. It was paid with our accounts, right now we are not able to get it back! This is not acceptable, i can not handle this. I have to go to court.
I called emailed square ahead of time telling them I would have a larger sale. My deli was selling equipment instead of sandwiches. I was emailed back saying no problem. I had auction and after equipment was loaded on trucks and down the highway, and then I get an email saying my charges were flagged and they need corporation papers, business license, three months bank statements. So I faxed them everything they asked for. Next day I followed up with them. Spoke to live person who said everything looked in order. Said I would here from someone Monday. I tried calling back Tuesday and my code they gave me wasn’t valid. I tried using card reader and it said deactivated. I’m screwed. My equipment is down the highway and square has my money. This can’t be legal. I’m going to Pensacola court today to file suit against them and damages. These people need taught a lesson. I may have to file in federal court. I’m not sure. Anybody have any other ideas ? I contacted Walmart and they are going to pull readers off shelf. At least in my local store. These people are crooks in my book.
I’m sure there is a class action lawsuit down the line for square. This company will have to pay billions to its customers. Where they fall short is their policy states one thing and they do the opposite. Or their policy doesn’t explicitly state a rule at all and Square is making things up as they go along.
I’m in for class action.
Could I join your lawsuit? I paid my health practitioner via Square Up $14,000.00, Oct 25,2016. He had let me run up my weekly charges for over a year. It was a pricey treatment but I got my brain functioning again, so it was worth it. But Square kept the money, the practitioner never got it. Square kept it and deactivated his account even though they say he could refund it to the card holder, me. They never answered his requests to refund it which could only be done at their website since they had deactivated his account. I had done my duty to tell my CC Citibank to let the large payament go through. He hadn’t read the fine print on his account that said a large amount is a no-no. Well it has been over 180 and still no refund or sent to his deactivated account. See the catch 22? How can they send it to him after the 180 day investigation if his account has been deactivated. I’m confused to how would they would even know where to send it?. I hope Philip will put us in touch so we can together move forward in a lawsuit.
im in for the class action they are currently holding 1500 for no apparent reason.
From The Editor
This Post Might Help: Why Credit Card Processor Hold Funds
square has held over 6k on my wife’s account with them going on 95+ days now despite a shocking 90 day hold period they drummed up. now they won’t respond and are still sitting on her money. anyone have success?
Good job Robert for atleast taking out there stupid little readers out of Walmart. I have the same issue and now I’m thinking what to do it just not right. I mean I put my sweat and bliss to make money provide above and beyond customers service and now here those suckers hold my funds. I wish I knew that negotiations wouldn’t get it.
Robert tell me what should I do? Any help please!!
I’ve had a square account for 5 years and never had a problem. I just recently ran a $3,000 charge. First they simply failed to pay it out, then they told me my account was terminated and they still haven’t turned over the funds. They’re causing major cashflow problems. Bottom line… Never use square again.
How long have they owed you money? Same is happening to me but they say I can have my money in 90 days. Is that bullshit?
square has held over 6k on my wife’s account with them going on 95+ days now despite a shocking 90 day hold period they drummed up. now they won’t respond and are still sitting on her money. anyone have success?
Hi Tyson. I am in the same boat as you. Did you have any luck with getting your money back? Can I ask you what you have done? My 90 days has passed and they have not released my funds to me. I really appreciate your help. I look forward to hearing from you.
I notified my “account rep” of sporadic business and they still have my money and provide no recourse! They won’t answer emails and won’t provide a customer number so I can speak to anyone. How do I recover MY money before I have major cash flow issues? This is absolutely absurd! Square has the funds from the card companies. Where is there an opportunity for merchant fraud?!?
Square is holding 5000 of my money and the bad part is they won’t even allow me the opportunity to show proof of purchase, I sold a car, I can provide bill of sales and proof of title change but all square says is I have to wait til it comes from under review or refund the money
I am confused….
Is sudden increase or changes in volume or transactions is risk factor and generates flags… how is a small business ever supposed to start without getting funds held? For example, I order square today. And then go do a booth in mid April. I have had no sales and then all of the sudden have 100 transactions over two days. That is normal, but going to cause me problems?
Further more, lets says I go another few months after that without using square. Then I do another event or booth and same thing happens?
I dont understand how a business can operate if square behaves this way. Help, thoughts or suggestions?
Thanks
Hi Wade, if your processing is very sporadic and the volumes are high when you do process, you will be at a higher risk for having funds held. Unfortunately, that is just the reality of credit card processing in this day and age of rampant fraud. One precaution that can sometimes help prevent holds is to alert your processor a few days before you are going to have a booth. In some cases, the processor may be able to add a notation to your account that can reduce your chances of having money held.
Reguardless you can’t keep what doesn’t belong to you! The option to refund the money back to the original account should be of option! But it’s not! There’s no telling how many peoples money they have made off with! It’s pretty pathetic excuse for card processing company! They don’t even have live people to put people at ease about what is rightfully theirs! I think it’s about time the government shut the scammers down!