This provision removes your right to sue Square in court or participate in group lawsuits, which are often the only practical remedy for small-dollar claims or widespread consumer harm.
Consumer impact
Square's Terms of Service create significant limitations on users' legal recourse through mandatory arbitration and a class action waiver, effectively preventing group lawsuits against the company. Square retains broad discretion to suspend or terminate accounts โ including holding funds โ with limited notice, which poses material financial risk to merchants who rely on Square for payment processing. You can opt out of the mandatory arbitration clause by sending written notice to Square within 30 days of account creation or within 30 days of any material update to the arbitration terms.
What you can do
โ ๏ธ These actions may provide transparency or partial mitigation but may not fully address the underlying issue. Effectiveness varies by jurisdiction and individual circumstances.
Opt Out of Arbitration
Within 30 days
Within 30 days of creating your Square account, send a written notice stating your name, account email, and that you are opting out of the arbitration agreement. Send via certified mail to Square's legal department at their Oakland, CA address.
Applicable agencies
CFPB
The CFPB has jurisdiction over mandatory arbitration clauses in consumer financial service contracts and can investigate unfair, deceptive, or abusive acts under Dodd-Frank Act ยง1031.