Square Up's credit card processing service causes many businesses to mistake simplicity for competitiveness.
Update -- 11/11/2013: Square discontinues $275 monthly flat rate pricing as of November 8, 2013.
Square Up credit card processing isn't a good fit for every business. Square is best suited for individuals, or for businesses with low or sporadic sales volume or a low average sale amount. And even then, Square's poor customer service and tendency to hold funds and impose reserves makes it a gamble for any person or business.
Choosing the right credit card processing solution can make or break your business, and it's recommended that you read this entire Square review before using the service for your business.
Square has oversimplified credit card processing. This has allowed the company to grow rapidly, but at the expense and frustration of many of its users in form of deposit limits, frozen funds, and poor customer service.
Please take a moment to post your review of Square here.
See how Square compares to GoPayment, PayPal Here and others using our
Mobile Phone Credit Card Processing Cost Calculator
- Square is an aggregator
- Rates, Fees & Pricing Model
- Funding & Deposits
- Holds & Reserves
- Swiper & Compatible Devices
- Customer Service
- Sign Up
- Is Square Up Right for You?
Square is an Aggregator
Square Up is not a credit card processor; it's an aggregator. Paymentech is the company that processes transactions for Square, and JP Morgan Chase is the company's acquiring bank (also called a member bank).
Square's application collects credit card information and routes it to Paymentech where it is then routed through Visa or MasterCard's network to the customer's issuing bank.
Square uses processors and banks just like any other merchant service provider, and it's not exempt from the interchange fees that banks charge, or the assessments that Visa, MasterCard and Discover charge. Square Up pays interchange and assessment costs behind the scenes and passes these costs to its users via a bundled pricing model.
Rates, Fees & Pricing Model
The pricing model a processor uses has a greater impact on cost than the rates and fees it charges.
Rate & Fee Pricing
Square uses a bundled pricing model to bill its customers for credit card processing. This means it combines the three components of credit card processing costs into one single rate.
For example, banks charge businesses an interchange rate and transaction fee of 1.51% and $0.10 each time a business swipes a Visa consumer credit card. Visa makes money by charging an assessment of 0.11% and $0.0185 on the same transaction.
Adding these costs gives us the "wholesale" rate of 1.62% with a $0.1185 transaction fee. Square combines these first two components of cost with its own markup, and then bills its customers a single rate of 2.75%.
As I'll explain a little later in the review, Square's pricing is cost-effective for some businesses, and very expensive for others.
Square Up does not charge any monthly, annual or start up fees. The only charges are the company's processing rates listed below, which vary depending on whether a credit card is physically swiped or the card number is key-entered.
Swiped Rate (Retail)
Square charges a flat, fixed rate of 2.75% of volume for all Visa, MasterCard, Discover, and American Express credit and debit card transactions. For example, a $100 transaction would incur a fee of $2.75.
Keyed Fees (Card Not Present)
Transactions that are keyed instead of swiped are charged a higher rate of 3.50% of volume plus a $0.15 per item fee. For example, a $100 transaction would incur a fee of $3.65.
Flat Rate Pricing -- Discontinued November 8, 2013
Prior to November 8, 2013 Square offered flat rate pricing of $275 per month with several very limiting restrictions.
Under this pricing model a business did not pay a percentage fee. Instead, it paid $275 per month to process up to $250,000 a year in swiped transactions. Any volume in excess of the $250,000 limit was billed at Square's typical 2.75%.
Square's flat rate credit card processing only applied to swiped transactions less than $400. Transactions of $400 or more were billed at Square's swiped rate of 2.75%, which was a charge in addition to the $275 flat rate.
It's also important to understand that Square's flat rate of $275 did not cover keyed transactions. Keyed transactions were billed at Square's typical rate of 3.50% plus $0.15, and these charges were in addition to the $275 flat fee.
The restrictions that Square has imposed on its flat rate pricing caused many businesses to pay more than $275 a month. For example, keying in even as little as 10% of transaction volume resulted in a business paying a hefty 3.50% plus $0.15 surcharge in addition to the $275 for all keyed volume.
Funding & Deposits
Square doesn't get very high marks for the way it handles funding and deposits. The company deducts fees prior to deposits, which hinders cash flow, and it caps deposits for card-not-present businesses.
Users generally register deposits in their bank account in one or two business days if sales are greater than $10. If sales are less than $10, Square will not deposit funds until sales surpass the $10 minimum.
Below is the funding schedule from Square's Web site that outlines when deposits will show in a user's bank account.
|PAYMENT TAKEN||IN BANK ACCOUNT|
|Sunday 5 p.m. PDT – Monday 5 p.m. PDT||Tuesday morning|
|Monday 5 p.m. PDT – Tuesday 5 p.m. PDT||Wednesday morning|
|Tuesday 5 p.m. PDT – Wednesday 5 p.m. PDT||Thursday morning|
|Wednesday 5 p.m. PDT – Thursday 5 p.m. PDT||Friday morning|
|Thursday 5 p.m. PDT – Friday 3 p.m. PDT||Monday morning|
|Friday 3 p.m. PDT – Sunday 5 p.m. PDT||Monday morning|
Square deposits funds into users' banks accounts using the daily discount method. This means that processing fees are deducted prior to deposit.
For example, if a user key-enters a $100 sale, she will receive a deposit of $96.35, which is the gross sale amount less Square's 3.50% plus $0.15 fee for key-entered transactions.
Unlike Square, many processors utilize the more business-friendly monthly discounting method. With monthly discounting, the processor makes gross deposits throughout the month and deducts fees in one lump-sum at the end of the month.
Monthly discounting provides better cash flow than daily discounting, and also makes reporting and reconciliation easier. Unfortunately, Square does not offer monthly discounting as an option.
Check out CardFellow's article about daily vs monthly discounting to learn more.
Square automatically sends transactions to the processor for settlement at the end of each day. This is known in the credit card processing industry as auto-batching.
Square's virtual lack of an underwriting process leaves the company exposed to higher levels of fraud and misuse. For this reason, Square limits deposits of higher risk card-not-present volume to just $2,002 every thirty days.
Any amount beyond $2,002 will be held until the following 30-day period.
Square's high rate and fee of 3.50% plus $0.15 combined with its deposit cap of $2,002 a month makes it a very processing solution for businesses that key-enter the majority of transactions.
If your business does key-enter most sales, and you're dead set on using Square, you should request an "accelerated payment schedule" via Square's email support.
Holds & Reserves
Credit card processors combat fraud and misuse by utilizing a thorough underwriting process before allowing a business or individual to accept credit cards. Square has bypassed this underwriting process in order to grow its user base as quickly as possible.
Unfortunately for its users, this approach leaves Square very vulnerable to fraud which requires the company to take a "shoot first apologize second" approach to suspicious activity. The result is many businesses having funds held without notice for prolonged periods of time or reserves placed on deposits.
Like any merchant service provider, Square has a team of people that monitor transactions looking for fraud and other misuse. If suspicious activity is found, Square will freeze the user's account and hold any unreleased funds for the "entire time it takes" for a thorough risk investigation.
Funds are often held without notice, and Square is notorious for providing little, if any, customer service to keep people informed about the progress of a fraud investigation.
As I said earlier, Square's lack of underwriting makes the company especially sensitive to any changes in a business's processing history, volume, or average ticket size. If your company experiences swings in volume, ticket size, or you're expecting rapid growth, Square is not the processing solution for you.
A reserve (often called rolling reserve or hold back) is when a credit card processor routes all or a portion of funds from a merchant's sales to a non-interest bearing account until funds in the account meet a certain balance.
For example, if a processor requires a $10,000, 5% rolling reserve on a business's account, the processor will withhold 5% from each deposit until the balance of the reserve account reaches $10,000. It's then up to the processor to decide at which point to release the reserve account, if ever.
A traditional credit card processor will typically notify a business if a reserve is necessary when the business applies for a merchant account. However, since Square does not have an application process, a reserve may be imposed, increased, reduced or removed at any time at Square's sole discretion.
If your business operates on thin margins, a sudden reserve or more will likely be devastating. There's no one at Square you can contact to inquire whether your business is likely to incur a reserve, so consider this carefully as you determine whether Square is right for your business.
Swiper & Compatible Devices
One of the benefits of Square's service is that it's completely free to get started. Square's application runs on a user's existing iPhone, iPad or Android device, and there is no charge for the card reader (swiper) that plugs into the headphone jack.
Square's swiper is about an inch tall by an inch wide, and plugs into the headphone jack of compatible devices to collect information from the magnetic strip of a customer's card. Once a card is read, the information is encrypted and then passed to Square application for transmission.
Square's service is compatible with iPhone, iPad and Android devices. Apple iPhones must be running iOS version 4.1 or newer, which includes the 3G, 4 and 4S versions of the phone. Apple iPads must have iOS 5.0 or newer. Android devices must be running operating system version 2.1 or newer.
Square excels at some things, but customer service is not one of them. The company goes out of its way to avoid verbal contact with customers, and contacting Square customer service is not an easy task.
Customer service is expensive, and Square is putting its investors' dollars toward growing its user base, not toward servicing existing users.
Please tell us about your experience with Square's customer service using the comment form at the end of this article.
Square Phone Number
Square does not offer customer service via phone. Even users that have had their accounts frozen and funds held are directed to email support where responses to questions and issues can take as long as week.
There is a phone number for Square, but it's an automated line that simply prompts for an extension number. If you opt to stay on the line for support as directed by the recording, you're told to email your question or issue to email@example.com.
You can give Square customer service a call at the phone number below.
Square phone number: 415-375-3176
Square strongly prefers email support over phone support. The company claims to answer emails within 24 hours, but the basic consensus from existing users is that Square takes anywhere from three to seven days to respond, and some people never receive a response at all.
The Square email for support is listed below.
Square email: firstname.lastname@example.org
Alternatively, you can contact Square via this form on the company's Web site.
Square's goal is to acquire as many new users as quickly as possible, so signing up is quick and easy.
Square does not require a credit check on individual user accounts, but does require a credit check for commercial entity accounts.
For typical user accounts, Square's underwriting process is limited to a quick electronic verification of identity. However, the company does reserve the right to investigate a user more closely, and also to share user information with Paymentech (its processor).
Restricted Business Types
You wouldn't know it from Square's aggressive marketing, but the service is not for everyone. Like any other credit card processing service, Square has certain types of businesses that it will not work with.
Take a look at section six of Square's Merchant User Agreement to ensure your type of business is not prohibited before you sign up.
If your business is prohibited, you will likely find out after you sign up when Square freezes your account and holds your money. And remember, there's no telephone support to get the issue resolved.
Is Square Right for You?
Square is a great processing solution for individuals and businesses that fit a certain profile, but Square is by no means right for everyone.
It's very important to educate yourself about how credit card processing fees work before you decide to use Square or any other processing service. Do some reading about interchange plus and tiered pricing, and take a stroll through CardFellow's credit card processing tips.
Simplicity & Competitiveness Are Two Different Things
Square hasn't invented anything new; for better or worse, it has simply made credit card processing more accessible to the masses, largely through oversimplified pricing.
Interchange is credit card processing's version of wholesale, and the vast majority of interchange rates are significantly less than the 2.75% and 3.50% rates that Square charges.
Business that May Benefit From Square
Certain businesses may benefit from the flat rate pricing, mobility, and lack of monthly charges that Square offers.
Low or Sporadic Processing Volume
Square's lack of monthly charges makes it a perfect solution for individuals and businesses that don't process many credit cards or that only process cards every now and then.
Traditional credit card processors have monthly charges and usually a monthly minimum fee that makes them less competitive than Square for this merchant segment.
Low Individual Sale Amount
Square's flat rate and no transaction fee pricing actually causes the company to lose money when it processes very small transactions. Businesses that have an average sale of $5 will find Square to be very cost-effective; here's why.
Square has to pay banks' interchange charges just like any other merchant service provider, and interchange fees consist of a rate and a transaction fee.
For example, a large bank charges an interchange fee of .05% plus a $0.22 transaction fee each time a business accepts a card it issued. Visa charges an assessment of another 0.11% and $0.02 in addition to the interchange fee.
This makes Square's wholesale cost to process a debit card issued by a large bank 0.16% with a $0.24 transaction fee, or $0.25 (.0016 * 5 + .24 = .248) to process a $5 transaction.
Square's fee of 2.75% to process the transaction results in a charge to the business of only $0.14 (.0275 * 5 = .1375). Square actually loses $0.10 on the transaction.
This is the real reason why Starbucks is so interested in working with Square.
Business with Low Volume that Require Mobility
Square is a great fit for businesses that require mobility and also have low or sporadic processing volume. Businesses with monthly processing volume of about $4,000 or more will find other mobile processing service to be more cost-effective.
Fraudulent & Illegal Businesses
Sad but true — Square's simple sign up process gives virtually anyone the ability to accept credit cards. People that can't obtain processing services through traditional channels can now accept payment for products and service using Square — no matter the products or servicing they're selling.
Businesses that Should Avoid Square
Businesses that have medium to high sales volume, key in most transactions, have fluctuations in volume or ticket size, that enjoy any level of customer service, or that can't afford to have funds frozen without notice should opt for a traditional processor in place of Square.
Average Sales Volume and Up
Square's 2.75% rate is nice and simple, but it's not really that competitive when compared with a traditional processor offering interchange plus pricing. Sign up for free at CardFellow to receive instant quotes from multiple processors to see for yourself.
Businesses that key-in transactions instead of swiping cards should stay far away from Square. 3.50% plus a $0.15 isn't even close to competitive for card-not-present transactions.
Fluctuations in Volume or Sale Amount
Abnormal processing behavior triggers a risk flag that may lead to frozen deposits and account holds. Square has to manage risk like any other processor, but its streamlined sign up process leaves it more exposed than traditional providers, so it tends to have a hair trigger when it comes to holding deposits and freezing accounts.
Businesses that have fluctuations in sales volume or average sale amounts should not use Square.
Customer Service is Required
Square does not provide customer service. Even the company's processing agreement directs user questions to an email address. If you place any value whatsoever on customer service, Square is not the processing solution for you.
Horrible Do Not Use
I used Square for almost a year and had nothing but problems and issues. There is no customer service. The only good thing about Square is that we dumped them.
Square is the worst company I have ever dealt with. There is no service whatsoever. I am overdrawn because they will not deposit my money. Ignore the star.
This is the worst credit card processing system I\'ve ever experienced. They held my funds after 3 months of usage. I was told that funds would be released in 90 days, but they weren\'t. So I tried to contact them, but there\'s no way to do so. Square is like like the Whodini of customer service. Crooks!
Worst Service Ever DO NOT USE!
Everything has been fine as long as you never have to contact Square. A customer filed a fraudulent/unauthorized charge report on me and Square informed me of it and gave me 15 days to respond. I responded within an hour and provided the customer\'s signature on receipt and an email confirmation that was sent to the customer for purchase, and I expected to hear back from Square. Instead, I get a message stating that Square will be charging back the amount a few days later. After 2 additional messages to Square I have yet to even get an email from them with an explanation, response, or anything. I am currently filing a report against them and have to go through my bank to fight for my money back on what I say is now a fraudulent/ unauthorized charge from Square. There is no number to speak with a live representative, and they don\'t answer email. Do not use Square! The only reason I gave Square 1 star is because I couldn\'t leave it at 0.
scammer/ No refunds for six Months days
I started using square for my business, but the transactions didn\'t post to my account. I called several times with a long wait on hold. Finally, when I got to customer service they were extremely unfriendly and unhelpful. They hung up on me a couple time, so I cancelled my service with them, but the nightmare is they are going to hold my money for six months. Square needs to be sued. What a terrifying experience I\'ev had with Square.
They are stealing my Money
No stars, no customer service! Don\'t use Square. My card reader promptly stopped working after 3 months. Square sent me a new one and It did not work, either. It caused me to have to manually key enter card numbers, so Square charged almost $5.00 for my $100.00 sale. I sent several emails, but they refuse to talk to me. They keep charging the higher manual key-in rate after I told them my reader is not just allowing the cheaper swipe rate. Eight months later I think this is purposeful theft!
They are croocks
I have a limousine service in New York City. I drove a client from midtown Manhattan to the airport Marriott around 11:30 pm. The client paid $65 + $9.75 tip for a total of $74.75. A month and half later I received a chargeback for $ 72.69 with no explanation at all.
I have a receipt with a signature on it, and the transaction was swiped on the Iphone app in front of the client.
The most annoying and disturbing part of all is that Square has no customer service whatsoever!
There is nobody to talk to to help straighten this out. There is no phone number to call!
What kind of business are they running?
Square has the worst customer support I have ever encountered.
Stay a way from Square!
I love Square. I\'ve been using it for 2 years and I have always received my money the next day. I\'m shocked to see all these bad reviews. My transactions range from $50 to $5,000.
Don't use them!!!
I thought Square was okay for the few transactions I processed. I processed an identical transaction to a previous one and Square froze the money for 90 days and deactivated my account so that I could not process a refund. And of course, their customer service email has a statement that says, \"your request will very likely not be responded to.\" How convenient for them.
Great company as long as you dont want to make any money -- ever
Zero stars is more appropriate. I received a mid-day notice that my account had been permanently suspended. This made my business look incompetent! I had to turn down customers left and right that only had credit cards for payment. There was no response of any kind from Square. Are you kidding me?
This company is so not worth it. I am a small business and have now been emailing (phone customer service) for 2 weeks for a payment that should have taken 2 days. Another example of big business taking advantage to make money. I requested the customer payment and because of the trouble the refund of fees. They have lost my business! This is really a bad company.
I\'m shocked to see all the negative reviews here. I\'ve been with Square for over 2 years. I signed up with them when they started. It took me a bit of practice to use their swiper, but that was it. In last 2+ years I\'ve at least done 3000-plus transactions. Only once I had an issue, which Square resolve in the best way possible. I\'m a taxi driver, and I was probably the first one using Square in my city. My customer loved it and I didn\'t have to deal with taxi companies to cash my credit card. I saved over 50% in processing fees & got my money next day. I\'ve only seen improvements in since I started with them. Now I work for a company which offers their customer credit card processing as well as an option.
I haven\'t had a problem with Square at all. I just tell customers/clients that if they use a credit card I up the rate 2.75%. That way they can use their card and I can make money. No problems with deposits and extremely easy to use.
DON'T DO IT!
Square deserves no stars! Square is the worst company I have ever had to deal with. Things went smooth the first day, then as I accepted more payments, they told me I needed to verify myself and my business. I did so, and then they terminated my account stating I am a high risk, and they are still holding my funds for a 90 period! First, I should have my funds dispersed to me without having to wait 3 months to get what was already paid to me. This hold has cause me financial difficultly, which is resulting in an eviction from my home. Secondly, you cannot speak to a live person directly. You have to email them and wait for a response with a case code before you can call. Thirdly, they will not divulge why they terminate your account. They told me it was security reasons. I feel Square needs to verify and determine who is high risk before they issue an account. Square misleads people into thinking it will help with their business, then they collect your money and tell you you have to wait to receive it.
Horrible CS- No stars
They won\'t let me charge my customer. I am writing to the Attorney General about Square. Their software won\'t accept a charge that is legit, and the paying bank says the card is in good standing and that the charge is accepted. The transaction is instantly reversed for no reason. I have received 4 emails stating exactly the same cut-and-paste comment about \"make sure your info is correct\" (which it is), and I\'ve been asking for a callback which has never come. I\'m very close to closing my account and looking elsewhere.
Excellent so far
My business uses square only a few times a month, but when it does, it is for large amounts. We have never had an issue. A typical payment we run through on Square is anywhere from $1000 to $5000, and the money has always been in our bank account within 2 days. And yes... keyed transactions as well as swiped both work fine with these amounts. We have never had an issue whatsoever. Here\'s the deal though: You will need to request an increase, or this amount of money will not be authorized without waiting at least 30 days. They will require more information about your business. This is a good thing because it protects them and us. Let\'s face it, they don\'t want drug dealers using their services or prostitutes. They want legitimate businesses using their services. As far as the customer support goes, you won\'t reach them via telephone. At least I never have. They have always answered my emails, though, after a day or so. In all fairness, everyone is quick to put a negative review when they have problems; but never take the time to post a positive review when they don\'t. I highly recommend Square.
Ignore the Star
Square is an absolute pain in the you know what. I can\'t reach them by phone if there is a problem, they send incorrect information to the wrong businesses, their web site is a nightmare, and there is no customer service. Do not use Square!
I wouldn\'t give any stars if I could! Square up is a scam. With the hard times and a house and car payment, I decided to sell my personal items. I downloaded Square, filled everything out, and later that day manually entered my customer\'s credit card information. I was red-flagged and asked to fill out an application and provide a credit card form with my customer\'s information, my CADL, etc. I provided the information and called the next day. I\'ve been in customer service for over 7 years, and this was by far the worst I\'ve ever came across. Before being hung up on (yes, she rushed me off the phone then hung up), she said my information was reviewed, all looked good, and I would receive an email explaining to me what would occur next. Yesterday I received an email telling me to refund my customer! Really, I provided everything Square requested. When I called again, the customer service representative said the person who reviewed my account was named Omar, and he doesn\'t know why it was refused. What a bunch of B.S. They really need to work on their Customer service skills, and write out a better description of what is needed to use this device. Square is lame.
When I sought customer service, Square officials phoned the police instead of providing support
I was horrified and astounded to discover that Square does not have a customer service phone number, nor do they provide their address anywhere in their documentation. All of their email responses to my support problems (chargeback) were copied and pasted from portions of their FAQ pages and were days late or non-existent. I decided to dig deeper. I got a physical address from the Better Business Bureau and drove directly to their offices on Mission Street in San Francisco. The security guards in the Square lobby had the door locked but let me in before realizing I was there with a customer service issue. Once inside, the security guards told me they would call the police if I didn\'t leave. They said this was Square company policy. I waited for the police. Of course, the police in SF have better things to do than come tackle a customer, so they never arrived, but while I waited I asked many Square employees who traversed the lobby if they could send someone down to provide support. These employees hurried by me, some pointing to the security officers and saying they were responsible with dealing with my problem. Others lied and said there were no support personnel at the site. One employee, who was accompanied by a well-dressed person I assume was a sales prospect, did take a moment to tell me that there were customer support reps upstairs, but he added it was company policy to never speak directly to customers. I am now trying to serve small claims action against Square, but have been unable to get a person\'s name needed for small claims service. I checked \"one star\" because it was a required field but I would not give Square any stars. Their customer service is disgusting; they should have budgeted that into their model instead of spending so much money on advertising.
I spent six hours installing two air conditioning units for an out of town customer, and Square will not release $2,000 of the payment. I am a one-man operation, and I just lost $3,000 thanks to Square.
I have been a Square user for almost 2 years until today. I have highly recommend Square to my clients, as well as to others in my same industry. Now I completely have a new point of view on this company. They misrepresent themselves and I recommend that all small business owners/ independent contractors avoid using their services. I wish I would have done more research on them and read more reviews. As of today, they have deleted my square account and will not be giving me my funds owed to me. They simply wrote an email stating my business is \"HIGH RISK.\" High Risk? What does that even mean? When I ask for them to be more detailed about there inquires on my account, they said \"We review accounts randomly.\" So, after taking a percentage of my profits for almost 2 years and now with holding my funds, they cut me off! Well, I simply wrote back saying, \" You are a small fish in a big pond, I will take my business else where.\" I hope they crash and burn!!! Stay away fellow small companies, stay away!!
AVOID SQUARE AT ALL COST- THEY ARE CROOKS
This company is horrible. Like another reviewer wrote, Square holds your money. They have no customer service, so when you have a problem there is no one to help you. Their fees are much higher than other companies, yet there is no customer service. They are horrible crooks.
Fraud in the worst way
Square is a joke! I have advised everyone I know to avoid them. I tried charging my customer\'s credit card and the charge was declined on my end. However, my customer called and said I charged his account 3 times in the amount of $9000. I contacted Square and got no answer. Meanwhile, I contacted my customer\'s bank and stated the charges were declined on my end, so how can 3 charges be approved on the card? I told my customer\'s bank to reverse any charges because I didn\'t get an approval code. Although I resolve the problem, it left a bitter taste in my mouth. I wouldn\'t advise anyone to use Square.
Is anyone actively suing this company? They are holding $2580 of mine and I can\'t get an response. The business that has a contract with them that I did business with can\'t get any response, either. I am beyond frustrated!
Square took a $6,000 payment from my customer, but only deposited $2,000 into my bank account. Unable to contact customer service by phone, I waited patiently hoping the issue would work itself out. When it didn\'t, I finally figured out how to submit a complaint to Square. They sent and auto-response a few days stating they would release $2,000 after 30 days, and another $2,000 after 60 days. I have begged them to have somebody to call to discuss this matter, but I get no response. All of Square\'s phone numbers tell you to visit the web site. I filled out all kinds of paper work, scanned and emailed invoices, quotes, my business license, tax ID number, etc. and received the same response. Square is investing and drawing interest off of my money they they have no right or reason to hold. They are not even the processing company, they are just a middle man. I am seeking legal action and will post what I find. Square is not here to help your business. If they were, they would offer customer support.
Nonexistent Customer Service
Has anyone ever taken legal action against Square for deducting funds from a bank account without explanation? I\'m ready to... but with no address or phone number, how could one serve them?
Very unhappy with this service.
Stop Gap measure
Square is good if you need it in a pinch. It is very expensive and they hold your funds for an entire week! I wonder if they pay themselves that way? I bet not. I am setting up real credit card service online, but needed Square until all the online was in place. It is an expensive lesson.
The bottom line
The bottom line is what I pay in fees. With the economy in our area plummeting, paying $300 in fees for credit card transactions in comparison to not even $100 in fees (processed daily so no bill) can\'t be over looked. Yes, read all of Square\'s rules and regulations so you are aware of how and what Square can and cannot do. But right now, I can\'t afford the $330+ fee at the end of the month. I don\'t care how secure you think you are. I am aware of Square\'s customer service issue and holding funds, but right now we are happy and making it.
We love Square
We love square. It has allowed our non profit which normally isn\'t able to take credit cards to do so, increasing our sales volume over 30% (after the fees!). We are seasonal, too, so this is a perfect solution to us. Customer Service is lacking. However, you learn that in the beginning if you do your research before you use them.
Beware- No Customer Service!
Please watch out! Square\'s popularity is no substitute for genuine customer service. It\'s not the only kid on the block, and I encourage everyone to shop around.
I\'m on the board of directors for a non-profit organization. We purchased Square to assist processing transactions for a one-time major fundraising event. Square was allegedly never able to verify our organization\'s bank account, which they notified us 3 days AFTER our event! They allow their company 1-3 days to verify accounts, but went slightly beyond that in our case. Repeated e-mail requests for help have gone unanswered, unless you count an automated one containing a case # (which we can\'t seem to plug in anywhere except on their phone line that doesn\'t ever work). No explanation for non-verification, only a meaningless case # and a link to POSSIBILITIES why they MAY have been unable to verify our account. Five days after our fundraiser, we\'re out the original $10 purchase and our charity has outstanding credit card transactions that we can\'t process.
Since our board\'s options were to either switch bank accounts on Square\'s site or trash it and purchase a different brand of card reader... guess which we chose? Square went in the trash where it belongs, and we\'re now on a quest for a reputable, reliable card reader. Unfortunately we\'ll STILL have to get charged a bit more by any reader now that our transactions will be considered \"card not present\" sales. But at least we\'ll have a real customer service department to rely on.
Square doesn\'t even deserve a rating. Is this company even real? It\'s almost impossible to find a telephone number to actually speak with a person instead of having to email them, which they never respond to. I requested a reader more then 3 weeks ago and still haven\'t received it. I have gone back numerous times looking to see if I made a mistake or missed something, but I didn\'t. Everything is how it should be. I finally found the number coming on this website, so thanks. I\'m going to call, so we shall see how this goes. So far this company\'s customer service is non-existent.
Not a problem
I was paying a fee for the use of a processing machine of approximately 70.00 US per month for a part time business for 7 years. If I had no credit card sales I still had to pay $70, no exceptions. Most of my sales are in the winter months, so having Square with no monthly fees really worked great for my company. I\'ve really struggled to stay in business for the 7 yrs I was with the enemy, and I am thankful for Square to allow my part time business to stay above water. I have had no trouble processing cards, or getting money deposited in my account. I just hope the company doesn\'t get greedy like the enemy and try to charge us out of business
I\'ve Had Enough
On May 5th 3:14am Square sent me an ACH deposit to a bank account that has never been used by us for Square. Square has been depositing in the correct account prior to that. The left hand does not know what the right hand is doing.
As the owner of four small businesses I have tried to find something positive about Square. I researched the Internet and found a few good comments that could have been staged because the bad comments outweigh the good. Therefore, everyone using Square should realize it\'s not if something will go wrong, it\'s when. Sooner or later an issue will come up. I called today my Attorney General after this episode.
If you call Square at 1-888-642-0662 you will be prompt to enter the immediate action number they emailed you. So, I entered my case number to see if that would work and it hung up. Square is an absolute nightmare. I encourage everyone that has unresolved issues to notify your Attorney General.
A quote I read from a disgruntled customer is that Square preys on small businesses, and the customer is right. It is my belief that Square should be held accountable for deceptive marketing and business practices. There is a pattern to the complaints. Therefore, there are probably more Square users out having issues but not voicing the complaint. I have no malice towards Square, I just want them to deliver the service they claim to provide and my deposits to go to the correct bank account.
They are a very bad company. Square screwed me big time. Does anyone know how to start a lawsuit or some kind of action against them so the world can get to know them a little? They are a bunch of fools hiding behind emails.
Let the Courts begin!
Square\'s customer support is absolutely unacceptable. Claims are in many cases false because you cannot get a reasonable response time, or a live person. What you will get is canned email response. Email Square with anything and you get back a \"Thank you\" and an open-ended response time. If you dial any phone number for Square you will hear a pre-recorded message, and then it hangs up. I did find one phone number that prompted me to dial an extension of a live person, but then it went trough the same pre-recorded message and hung up.
I spent a day trying to get an answer to a very simple question, \"Where are my deposit going?\" Come to find out they were going to the wrong bank, even though I verified my bank account with Square when setting up. Can you say \"law suit?\" I wish everyone the very best in dealing with Square. I hope you don\'t need customer service, and that you don\'t mind cash reserves and holds on deposits.
Had a terrible experience with Square Up.
I processed a few sizable overseas transactions. Square first asked me for several additional pieces of information about my business, all of which I provided. Then, with no personal communication, Square closed my account and required me to wait 90 days to get paid or to make alternative arrangements. They are useless for businesses. Stay clear.
Very Unhappy With Square
A client did a chargeback dispute through her Visa. After speaking with client by phone, she admitted that she should not have initiated the dispute in the first place and assured me she would advise Visa to stop. Square has been provided documents, including the email from our client stating she was having Visa close out the dispute. However, Square\'s automated email process keeps sending out emails saying \"Square is debiting your (bank) account.\" Customer service failure.
There is no phone number to reach a live person, and no direct email to whomever at Square is supposed to be handling these issues. Based on this experience and another prior issues, we are not at all pleased with Square\'s lack of service to their customers. We made a mistake going with Square. Now our clients can pay cash or check. At least we can make direct contact with someone if there\'s a problem.
After giving square everything from my marriage license to my federal EIN they decided to suspend my account. I was smart and put a hold on my bank right before they tried to withdraw ALL the money I had processed with them, but that couldn\'t stop them from keeping the funds that weren\'t yet deposited. Square said they would hold my funds for 180 days. I looked it up, and 180 days is the time limit for chargebacks in California, so I sat back and waited. Now it\'s a good while past 180 days and I\'m still getting a hassle. Square now say its an indefinite hold, and that\'s all the Information I get. Meanwhile, I\'ve used the PayPal swiper the entire time with no problems whatsoever. Oh, and if anyone has a Square phone number with an extension - please post it! Any number I can find online either hangs up after a brief message, or asks for a extension number. Thanks in advance to anyone that posts.
squareup.com = RED FLAGS! Do not even waste your time!!!
So I am a small business owner in New York City. I have a very busy small business dealing in Thrift, Antiques, Vintage Items, modern furniture, Vinatge jewlery, and any odd item you can think of. I have been a loyal Paypal user my entire life and I should have stuck with Paypal after this encounter.
I am out one morning and see an advertisement in a postal store for Square payments. The actual card reader was hanging on the wall and read \"Square Card Reader Accept Payments Everywhere\". I purchase the item solely for the benefits listed on the back \"plug and go\", \"Get your money Fast (the next day)\", and \"Just 2.75% per swipe\". All those what turned out to be false promises and advertisements persuaded me into purchasing the swipe reader for $10.00.
I start using Square\'s iPhone application almost instantly on my iPhone. The first couple of swipes for some Antique purchases in my shop go into the Square account and then into my bank account the very next business day.
A few days later, I sell three orders in my shop to loyal customers who come and visit us here on a daily basis. The three swipes go into Square and the customers receive their items. The very next business day there is no money in the bank account, I shrug it off and say hey I\'ll give it another day. After several days there is still no money in the bank account, so I grow nervous and suspicious and contact Square (which is not customer-friendly).
Once finally on the phone with Square I am told that, \"I have to become verified and the issue with not receiving the fund with be resolved and I will have my funds in 1 to 2 business days.\" So, I abide by their wishes even though it goes against their advertised \"Get Your Money Fast\" & \"Plug in and Go\" slogans.
I get to this form that asks about myself and my business records. I provide them with everything they ask for including personal security information, business License, Federal EIN number, NYS Tax I.D. #, and My business (3) most recent bank statements. Once done, I waited a couple of days and received no call or email. I then called Square again. At that time, Square tells me that they have all my information and the funds will be available in one to two business days. No sooner do I hang up the phone when an email pops up in my inbox stating that I have been found fraudulent/ high risk & cannot access my funds for 180 days.
At this point I am steaming and slowly losing my composure. So I grab the phone that I hung up two minutes ago and call back! Once on the line with Square I am informed that I cannot receive the funds for the Antique sales I had just made & delivered. Mind you that we are talking several thousands dollars here, but even if it was a few hundred I would still be steamed because this is some severely unprofessional group they call a company!
I asked how I was supposed to get paid for the items I have sold in my shop, and Square tells me to \"refund the customers & use another application for credit card payment.\" Are you serious? These items are long gone & delivered! Square said, \"there is nothing we can do to assist you at this time.\" I then asked the rep for the mailing address to have my attorney contact them! He replies, \"please have your attorney call in to the legal department. We do not provide addresses to customers.\" That sums it up. I have had enough!
Thank Goodness that I have a family-oriented store, and customers all willing to come back and swipe their cards through PayPal so I do not lose the sales or the items. Anyone in my shoes with a small business knows that several thousand dollars is not easy to wait for! Especially SIX MONTHS.
Beware of Square. Stick with PayPal -- at least they are established & very fair when it comes to disputes!
Avoid this Dirty Business
If I could give NO Stars, I would! Much like several of the other reviews, my money was being \"held\" due to \"account verification\". When I inquired, they wanted all my banking information, business information and personal information as well. When I started questioning my customer service rep \"Warren\", he told me to \"do it or be deactivated.\" When I asked about the funds they were holding, he told me to refund my customer from my dashboard. What?!? My customer is long gone and now I have to try and get paid? This is the most crooked, money stealing operation there is and does NOT care about the service they provide or the consumer that is paying them. If more business owners knew what a scam Square is running, we would all be using IntuitGo Payment. I am going back to Intuit today.
Unbeatable for a card-present based situation
We\'re doing about $23,000 - $25,000 per month on mostly card-present transactions. With the additional costs for our card-not-present transactions and the 2.75% costs over about $20,080/month + the $30.00/month iPhone line cost, we still get about a 1.99% COST. Nobody can even come close to that. We pay no service charge for any credit card (Amex, Discover, Mastercard, Visa all accepted).
I\'ve had no real issues with customer service because generally I don\'t need them. When I did email, I got a reply. Setup is simple, processing is easy. So far it\'s been amazing and will save us $8,000 - $15,000 in the first year.
Where is my money?!
I have used Square for a couple of years with no issues until now. I have had 2 instances recently where Square has charged my customer, but not given me the money. In one case, Square showed a declined card to me but charged the customer and didn\'t send us any money! There is no history of the transaction in my transaction history. My customer is going to the bank today to see what is happening with the charges. There is no way to reach these folks, so you can\'t find out where your money is or when you will get it. I can\'t even tell my customer anything about what happened because I can\'t reach anyone at Square! I will be changing the way I process cards again. I liked having no monthly fee as I don\'t accept credit cards that often.
Run, don't walk!
Like many reviewers on here, I hardly ever leave negative feedback, but Square\'s utter lack of customer service is appalling. We\'ve used them for about 15 months, maybe 6 transactions per month on average, $700 is the average charge. We were able to get our charge limits lifted slowly over time so they didn\'t hold our money forever, all communication was by email and it was timely and acceptable. The trouble has been with a chargeback initiated in December 2012. Cardholder died and it seems like all charges were contested. The widow of the cardholder agrees we delivered as promised and has paid Discover. Yet 100 days later we get NO response from Square other than the canned emails about \"reviewing\" the case. The customer has paid their bill, Square yanked the $ out of our account 3+ months ago and offers no explanation, no path to resolution, utterly no response at all. I\'m switching to Intuit\'s GoPayment. It HAS to be better than this.
Response: Chris, I\'m sorry to hear about your troubles with Square, but switching to GoPayment isn\'t going to improve you situation. For starters, take a look at the Gopayment review here on CardFellow. With your volume, you will get the most competitive pricing (cheapest) and best service using a traditional processor and a smartphone application. Sign up here at CardFellow to get multiple quotes, and any processor will be able to provide a smartphone application. Your overall effective rate will be lower than Square\'s 2.75%, and way lower than the 3%+ you will be paying to Gopayment.
These folks are thieves!
I almost never write reviews but this company is just too much. How anybody can work there and still sleep at night is beyond me. The Square model seemed attractive for a company like mine that has a limited number of transactions. The mobility factor was a plus as well. So I loved it right up until the time they decided to put a hold on my funds. A fraudulent customer made bogus claims about work we had done for him and was able to get a charge back processed through his credit card company. Square took the money out of my account and simultaneously put a hold on $5,500.00 that was in their system from another customer payment. That was August 1 of 2012. After much back and forth with their customer \"service,\" I was told that if no other claims were made within 180 days, I would get my money. It has now been 225 days and still nothing except this recent reply from \"Jordan:\"
Thank you for the response. We are actively reviewing your account and will let you know when we have more information.
All the best,
Square Chargeback Services
I am not a violent guy, but right now I am ready to punch someone.
Run, don\'t Walk away from Square
Do not use this company. There is no customer service and they take your money and hold it at will. There is no dispute resolution. Once they get your account info they will deposit and withdrawal from it as they choose. You cannot even disable your account without extensive effort, and Square does not respond to your email requests. Run far away from this online THIEF.
Stay away from Square
Be careful before you start using the card reader from Square. This is company is like a one man operation without phone support. They will hold your money as long as they want and release the funds when they want. I am just waiting to transfer my $7000 to my bank and I am done with this company.
Works for me
I have been in business for over 25 years and used traditional credit card processing until 3 years ago when I sold my business. Reopening my business was and establishing credit card processing was a breeze with Square. In the past my rates always changed and it has so many tiers of what was charged I never knew what my overheated was going to be, as the rates varied between 2.69%-4.95%, because of qualified, non qualified, rewards cards, corp. cards, etc. it was always a swipe and keep your fingers crossed for a low rate. With Square I have NEVER had an issue.. Funds are always processed in a timely manner, and deposited without hesitation. I am a one person business right now, and my charges are generally between $500-$1100 per transaction. For me and my business, Square has been a great solution. I see a lot of negative reviews, and obviously isn't for everyone. Plenty if other business following the model of Square, so they must be on the right track. Hope this helps.
Square Holds Funds With No Warning!!!
Square held 2500 in sales from me... I run a legit business and provided Square with an invoice. They told me I have to wait 6 months to get my money. Unbelievable! Now I\'m having big problems...
I use Square attached to my fourth generation I pad at my deli. Employees get more in tips and I save 400 a month. All the benefits add up to a big plus for me.
SQUARE IS A SCAM WHO HOLDS MONEY TO FUND THEIR BUSINESS
I used square thinking this was a fast accurate way to accept payments from customers. I run a cash and carry business at a flea market. I took 2,335 worth of payments, and the following day I received an email stating I would not be getting my money and I needed to \"prove\" I was legit. I sent in all necessary paperwork and was still found to be high risk. I have never spoken with a human. I have no updates about the status of my money. I have only gotten computer generated responses. This company is a complete scam. Their policies are unclear and deceptive. I would not recommend this company to my worst enemy.
Unfortunately, like many others, I did not read reviews of this company before I got sucked in by a gift that was given to me with the credit card scanning device, which I dont even have a use for. The company has NO customer service whatsoever...every response is by email a day later. They want to give you a very low processing limit, which my business exceeds... because they want to HOLD your money. Well, maybe I didin\'t read the reviews in time, but at least I never processed a single transaction through them because the company is the S*#TS! Beware and stay away! I will continue to use PayPal when I need merchant processing services.
I wish I had taken the time to read these reviews before I dealt with this company. Square deactivated my account and are now holding my funds in reserve -- whatever the heck that means! All because of \"High Risk Transactions,\" I am so pissed they have $826 of my dollars in limbo and I cannot even speak to anyone!
Horrible Merchant Processing
I am utterly disgusted that I am being forced to borrow money for conducting business due to not receiving funds that were put through Square. They are holding over $2000 that is being held for an \"over the weekly limit charge,\" and although we know that is the policy, I am unsure why. I should have never used this company to process my credit cards, and may be forced to have my customers do a charge back. It is embarrassing to use these excuses when not being able to utilize your own company money for such ridiculous safeguards against legitimate business that are trying to remote charge customers. I have only used it a week and am now over $2000 in debt, if the hold this for 30 days we will have missed the occasion to use the money to buy the supplies needed to complete the job. This is an absolute nightmare. I have received one email that they are verifying the account, and that could take up to 30 days, but i have read on other accounts they are held up to 180 days. I feel so helpless and there is no one to speak to. I don\'t think this is a safe way or intelligent was to process funds. Very dissatisfied customer...
I own two small businesses, both with very high credit card transactions and have had nothing but positive experiences with Square. My funds are always deposited next day and their software interface is easy to use and highly functional. For those reviews that complain about Square holding money, they should have actually read the information that Square makes readily available on their website that says they will hold any funds over a certain amount for 30 days (which is probably a liability safeguard). If you are using Square for a small business (which will have higher transaction counts) you simply email them and ask to have the minimum increased, which they will do so with no problems. Overall the system is great, and we will continue to process with them.
I charged a customer $100 for a small landscaping job. A full 30 days later I get a email saying the customer was refusing payment and I had 15 days to challenge this. (She didn\'t recognize my email on her statement and forgot). I immediately responded to the email and also talked with the customer who apologized and called her bank to release funds, which they did. All was cleared up on our end. No less than 24 after receiving the first email, I get another saying they are debiting the $100 from my bank account. Which they did. I have sent over 10 emails without reply except for the auto-response directing me to the non-existent support page. 30 days have passed since they stole the money out of my account and have said nothing. There is nobody to call, so i guess I\'m out $100. If that was a larger amount say a $1500 job, and the same thing happened I would be up crap creek. Probably would have spent the money on bills or equipment and moved on, only to get a $1500 lien against my bank account. Fortunately, it was only $100. I have read reports of them holding thousands of dollars for months. Never again, as soon as this is sorted out, I\'m dumping them asap. I\'m already using intuit in the meantime.
Ok if occasionally utilizing
We have used Square for a short time and it has been helpful to have an alternative to our normal card processing. However, if you plan to do more than 1 transaction per day, you may wish to seek another service. If you need customer services, there is little to none available.
No customer service means no answers...
When we were using square for taking payments we were fine until the first little problem we had. Similar to others\' responses, after an hour or two I couldn\'t even find a number to call or an email to contact. Essentially, our only option was to switch providers and cancel because we couldn\'t talk to someone about getting our system working... Owell
What customer service?!?!
Customer Service, what customer service?
Same problem as Danielle and Doug... I got a dishonest customer who disputed a charge. After the client had a chat with my lawyer he decided to end the dispute. It has been 3 weeks since the dispute ended. I talked to AMEX and they said I should have received my money 3-5 business days after the dispute ended. Square is still holding my $2,800 and ignoring my emails. They actually said that AMEX hasn\'t notified them, which is BS. Just so everybody knows, the Square rep is Jeannette and she actually wrote in one of the emails for me not to write her so much because it takes her longer to look into my case. It takes her 1 week every time to respond and I write maybe twice a week requesting updates and asking questions, which she only responds to half my questions. For anybody with Square, good luck trying to get your merchant account number. I already requested it 3 times and it is no where to be found in the dashboard. Fix customer service and I might like Square again. If they don\'t like phones they can offer live chat.
I would never use square again...
I agree with Doug
As posted by Doug, I have had the same problem with Square. A client of mine paid over $400 for service with an AMEX. A month or two after the transaction, I receive an email saying that the transaction was in dispute and Square needed to withdraw the money from my account but were unable to because that amount wasn’t present in the account (lucky on my part). Luckily I had required the client to complete and sign a Credit Card Authorization form. I sent the Invoice and CC form to Square and they never got back in touch with me about whether the problem was solved or not.
Almost 2 years later, I had to accept another credit card payment and didn’t even think about what had happened. After the transaction, I log into Square and see that that same stinking amount had been deducted from my deposit. First thing I do is issue a refund so the client can get his money back and I can get the money in another form and continue the job. Next, I try to contact customer service so I can close this out once and for all. Longer story short, it took two weeks of customer support to get back with me after several emails to them and the last one CCd to my Lawyer. So now after a month of sporadic communique. Square finally came back and said that they did a little “Research” and found that the dispute was solved in my favor.
I’m going to burn my Square card reader and NEVER use them again. I should have went with my gut on the last transaction and have used Paypal Here.
Merchants, Stay Away
We had an Amex chargeback request for $348.59 on or about November 15th, which Square promptly took out of our account. We gave Square all the information needed to respond to the chargeback for it to come back in our favor. On or about December 4th Amex responded saying the chargeback was closed in favor of the cardmember because Square did not give Amex the proper information. On or about December 6th Amex reversed their decision in favor of the Merchant (us) and gave the $348.59 back to Square. I have twice spoken to AMEX about this and they have assured me Square has the $348.59, and Square should put the money back in our account.
To date Square has refused to refund the money to our account, and it seems like no one will work on our behalf. The phone number supplied by customer service does not work. It is a real joke how we are being treated when trying to get OUR money back, which they have. MERCHANTS, STAY AWAY.
Been using them since the beginning for small sporadic transactions. They've done a great job of turning the merchant system on its head... making it affordable for businesses like mine.
If you do a lot of transactions, or a small number of large transactions it might not be for you.
Worst situation ever!
I have used Square many times for the past six months to sell merchandise. Yesterday they deactivated my account and gave me an option of receiving the funds in 45 days or issue a refund, which I did of course, even though I gave them all the information they required as DL copy, invoice and all my cousin\'s info. I even offered the customer service rep to speak to the cardholder, but she refused and hung up on me (very rude). Customer service is always in a hurry while talking, and there is no supervisor to speak with.The rep. said, \"For security purposes we can not give you any information regarding your account deactivation.\" Then who can!? I strongly advise anyone against using Square.
I thought this would work great for a small part time business. After the third transaction they held all the money. It has been a month and I've responded to three different inquiries and still no money. I would never use them again.