You agree not to join or start any class action lawsuit against Square — all disputes must be handled individually, not as part of a group.
Class actions allow many people harmed by the same practice to join together; waiving this right means each merchant must individually pursue small claims, making it economically impractical to challenge widespread harmful practices.
Class action waivers in financial services agreements are subject to ongoing regulatory and judicial scrutiny; compliance teams should monitor CFPB rulemaking and applicable state law (particularly California) that may limit enforceability of such waivers.
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Square's terms grant the company broad discretion to hold, delay, or withhold merchant funds for risk management reasons, which can significantly disrupt business cash flow. Merchants waive their right to participate in class action lawsuits and must resolve disputes through binding arbitration, limiting their legal remedies. You can opt out of the arbitration clause by sending written notice to Square within 30 days of first accepting the terms.