CA-C-002562
Square — Square Terms of Service
Entity
Date detected
June 2, 2026
Effective date
July 1, 2026
Severity
Direction
Neutral
Affected users
all users us users business accounts
Taxonomy
Arbitration expansion
Changes
+1 sentence added · −1 sentence removed · 31 sentences modified
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Event Summary

Square updated its Terms of Service on June 2, 2026, with an effective date of July 1, 2026. The most substantive change replaces the prior 'Bellwether Arbitration' procedures for mass claims with a new 'Mass Procedures' framework that streamlines how multiple similar arbitration demands are handled. Under the updated terms, when 25 or more individual arbitration demands arise, the parties will select 12 demands (6 per side) to proceed first as test cases, but the new procedures establish a mandatory mediation phase after those initial arbitrations resolve, followed by batch arbitration of remaining claims (batched in groups of up to 100) with consolidated administrative fees. The prior language permitted remaining demands to proceed individually under standard arbitration rules if post-mediation negotiation failed; the updated terms now mandate consolidation into batches with a single arbitrator per batch and one set of fees per batch.

MEDIUM

Consumer Impact

The updated terms modify how arbitration disputes are resolved when 25 or more similar claims are brought against Square. Previously, Square's terms referenced 'Bellwether Arbitration procedures' under which test cases would be selected and remaining demands could proceed individually under standard rules if settlement failed. The updated framework establishes a mandatory mediation phase after initial arbitrations resolve, and requires remaining claims to proceed in batches of up to 100 rather than individually, with one arbitrator and consolidated fees per batch. This may reduce the procedural flexibility for claimants pursuing claims outside the initial test-case group, though the batch structure may reduce overall administrative costs. The terms now explicitly state that NAM shall administer batches concurrently and that parties will engage in a 'single global mediation' before batch proceedings commence.

Governance Analysis

The updated terms establish a more structured and predictable framework for resolving large volumes of similar claims against Square, moving from flexible ad-hoc procedures to a defined multi-stage process with mandatory mediation and batch consolidation. This change affects the timeline, cost allocation, and procedural complexity for any user or merchant involved in a mass proceeding, potentially making resolution faster for large claim groups but reducing individual procedural flexibility.

If No Action Is Taken

If you are party to a mass proceeding as defined in the updated terms (25 or more similar claims), your dispute will proceed through the four-stage framework established by the revised procedures, including mandatory mediation before batch arbitration.

If you disagree with NAM's determination that a Mass Proceeding exists or with the application of Mass Procedures, you must raise that disagreement with NAM to trigger appointment of an Administrative Arbitrator; no automatic procedural arbitrator will be appointed under the updated terms.

Key Clauses Affected

Mass Procedures (Section 22)

Replaces Bellwether Arbitration with a structured four-stage process: negotiation, bellwether test arbitrations, mandatory global mediation, and batch arbitration of remaining claims in groups up to 100.

Administrative Arbitrator appointment

Removes automatic Procedural Arbitrator rights and conditions administrative arbitrator appointment only on party disagreement about Mass Procedures enforceability, reducing procedural checks on NAM discretion.

Batch Arbitration structure

Establishes consolidated batch resolution with one arbitrator per batch, one hearing location, one set of administrative fees per batch, and concurrent batch administration.

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This change record describes what was added, removed, or modified in the document. Analysis reflects what the updated agreement states or permits. It does not constitute a legal determination about enforceability. Applicability may vary by jurisdiction. Methodology

Evidence Verification

✓ Verified
Previous Version
4d7572c514ad93fe97643459ec5dbbe8f22bf12f00a390e221ddddd7cec2b14a
May 30, 2026 00:52 UTC
✓ Verified
Current Version
cb6a9fcafc849ebc51b6b40168aefef7e9f18d4b8db2e378ce599f47b212aff8
June 2, 2026 00:43 UTC
✓ Verified
Change Detected
June 2, 2026 00:43 UTC
Analysis Methodology
✓ Verified
Source Document
https://squareup.com/us/en/legal/general/ua
Citation Record
Entity: Square
Document: Square Terms of Service
Record ID: CA-C-002562
Captured: 2026-06-02 00:43:52 UTC
URL: https://conductatlas.com/change/2026-06-02-square-square-terms-of-service-2562/
Accessed: July 20, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
For legal and compliance teams

Institutional Analysis

Assessment

Square introduced a structured mass arbitration framework effective July 1, 2026, replacing open-ended 'Bellwether' language with a defined four-stage process: individual negotiation, bellwether test arbitrations, mandatory global mediation, and batch arbitration of remaining claims. The framework references NAM's Supplemental Rules for Mass Arbitration Filings and introduces explicit timelines (120 days for bellwether resolution, 30 days for mediation, concurrent batch administration). This change does not appear to create new regulatory obligations, but organizations that reference or rely on Square's arbitration framework in vendor agreements or internal dispute policies may wish to confirm that the modified procedures remain operationally acceptable. The change applies to all Square sellers effective July 1, 2026.

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ConductAtlas provides verified policy intelligence sourced directly from platform documents. All analysis is intended to support, not replace, legal and compliance review. Record CA-C-002562.

Full Changes

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Document Context

Version history → Policy drift analysis → Document page →
Document
Square Terms of Service
Entity
Square
Captured
June 2, 2026
Source URL
https://squareup.com/us/en/legal/general/ua
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Previous change May 30, 2026
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Next change Jun 9, 2026
Square reordered a reference list of related terms and policies that follows its main waiver clause in the Terms of …
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