If you have a dispute with Square, you must resolve it through private arbitration rather than suing them in court. This applies to almost all disputes arising from your use of Square's services.
Arbitration is typically faster but limits your ability to appeal decisions, gather evidence, and obtain certain remedies that courts can provide.
The mandatory arbitration clause raises CFPB compliance concerns given ongoing regulatory scrutiny of pre-dispute arbitration agreements in financial services contracts; legal teams should assess enforceability under applicable state law and CFPB rulemaking developments.
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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.