All disputes are governed by California law and must be heard in San Francisco, California, regardless of where your business is located.
If you are a merchant outside California and a dispute goes beyond arbitration, you may need to travel or hire California-licensed attorneys, significantly increasing your costs.
The California governing law and exclusive jurisdiction clause has important implications for merchants in other states and international markets; legal teams should assess whether applicable local consumer protection statutes may override these provisions.
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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.