If someone sues Square because of something you did using their service, you are responsible for paying Square's legal costs and any damages.
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
This could expose merchants to significant unexpected financial liability if a customer or third party brings legal action related to the merchant's use of Square.
The updated terms modify how arbitration disputes are resolved when 25 or more similar claims are brought against Square. Previously, Square's terms referenced 'Bellwether Arbitration procedures' under which test cases would be selected and remaining demands could proceed individually under standard rules if settlement failed. The updated framework establishes a mandatory mediation phase after initial arbitrations resolve, and requires remaining claims to proceed in batches of up to 100 rather than individually, with one arbitrator and consolidated fees per batch. This may reduce the procedural flexibility for claimants pursuing claims outside the initial test-case group, though the batch structure may reduce overall administrative costs. The terms now explicitly state that NAM shall administer batches concurrently and that parties will engage in a 'single global mediation' before batch proceedings commence.
View change record →Cross-platform context
See how other platforms handle Merchant Indemnification Obligation and similar clauses.
Compare across platforms →The broad indemnification clause, covering third-party claims arising from merchant use of Square's services, should be reviewed by risk and legal teams; it may create uncapped contingent liability exposure and should be assessed for consistency …
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
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This could expose merchants to significant unexpected financial liability if a customer or third party brings legal action related to the merchant's use of Square.
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