This analysis describes what Square's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This clause establishes Square's operational authority to manage liquidity and risk exposure by controlling payout timing and requiring capital reserves. The provision establishes the mechanism by which Square can address perceived financial risk without requiring merchant consent or advance judicial determination.
Merchants operating Square accounts are subject to potential holds or delays on payouts at Square's discretion, and may be required to maintain reserve funds established through withheld settlement payments. The timing and amount of reserve requirements are determined unilaterally by Square with notification to the merchant.
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"Square may, in its sole discretion, place a hold on, suspend, or delay payouts from your Square account if we believe there may be a risk of loss to Square or to your buyers, or if we otherwise determine that circumstances warrant such action. We may require you to maintain a reserve account to secure your obligations to Square. The reserve may be funded by withholding settlement payments, and Square will notify you of reserve requirements.— Excerpt from Square's Square Terms of Service
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This clause establishes Square's operational authority to manage liquidity and risk exposure by controlling payout timing and requiring capital reserves. The provision establishes the mechanism by which Square can address perceived financial risk without requiring merchant consent or advance judicial determination.
Merchants operating Square accounts are subject to potential holds or delays on payouts at Square's discretion, and may be required to maintain reserve funds established through withheld settlement payments. The timing and amount of reserve requirements are determined unilaterally by Square with notification to the merchant.
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