Square can hold or delay transferring your money to your bank account if they decide there is a risk concern — they do not need to give you advance notice before doing this.
For small businesses, having funds unexpectedly held can be devastating for cash flow, payroll, and day-to-day operations.
The discretionary fund-hold provision creates liquidity risk exposure for merchant clients and should be flagged in vendor due diligence assessments; the lack of advance notice and broad risk discretion standard may warrant review under CFPB unfair, deceptive, or abusive acts or practices (UDAAP) standards.
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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.