Square · Square Terms of Service · View original document ↗

Mandatory Binding Arbitration

High severity Uncommon · 28 of 343 platforms
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Document Record

What it is

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.

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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

Arbitration is typically faster but limits your ability to appeal decisions, gather evidence, and obtain certain remedies that courts can provide.

Consumer impact (what this means for users)

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.

What you can do

⚠️ 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
    Write a letter clearly stating your name, account information, and that you are opting out of the arbitration agreement. Mail it to Square's legal address within 30 days of first accepting the Terms of Service.

Cross-platform context

See how other platforms handle Mandatory Binding Arbitration and similar clauses.

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ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

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.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • CFPB
    The CFPB has regulatory authority over pre-dispute arbitration clauses in consumer financial services contracts and accepts complaints about payment processors.
    File a complaint →

Applicable regulations

FAA
United States Federal

Provision details

Document information
Document
Square Terms of Service
Entity
Square
Document last updated
May 5, 2026
Tracking information
First tracked
March 20, 2026
Last verified
March 20, 2026
Record ID
CA-P-00362000
Document ID
CA-D-00362
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
3d79cc9cc45aa3558212c7d86da79a91ba4fe8c01edd664c184c4b174d81f32c
Analysis generated
March 20, 2026 10:40 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Square
Document: Square Terms of Service
Record ID: CA-P-00362000
Captured: 2026-03-20 10:40:05 UTC
SHA-256: 3d79cc9cc45aa355…
URL: https://conductatlas.com/platform/square/square-terms-of-service/mandatory-binding-arbitration/
Accessed: June 10, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Square's Mandatory Binding Arbitration clause do?

Arbitration is typically faster but limits your ability to appeal decisions, gather evidence, and obtain certain remedies that courts can provide.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 28 platforms. See the full comparison.

Is ConductAtlas affiliated with Square?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Square.