Square can close your account immediately and without warning if it believes you have seriously violated the terms of service. Less serious situations may receive advance notice before termination.
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
Immediate account termination without prior notice means merchants could lose access to their payment processing tools and any funds in their Square account without any opportunity to address the issue first.
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 →Provision was renamed and now explicitly addresses termination without prior notice for material breaches, whereas previous version title suggested broader suspension/termination powers.
View full change record →Merchants could have their Square accounts closed without advance notice at Square's discretion, which would immediately interrupt their ability to accept card payments and could coincide with a fund hold on any proceeds in the account.
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"Square may terminate this Agreement or close your Square Account at any time for any reason by providing you with notice in accordance with these General Terms. However, in certain circumstances, such as where you have materially breached this Agreement, Square may terminate this Agreement immediately and without prior notice.Excerpt from Square's Terms of Service
REGULATORY LANDSCAPE: Termination-without-notice provisions in payment facilitator agreements are reviewed by the CFPB and state regulators under standards governing fair dealing and adequate disclosure.
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Immediate account termination without prior notice means merchants could lose access to their payment processing tools and any funds in their Square account without any opportunity to address the issue first.
Merchants could have their Square accounts closed without advance notice at Square's discretion, which would immediately interrupt their ability to accept card payments and could coincide with a fund hold on any proceeds in the account.
ConductAtlas has identified this type of provision across 265 platforms. See the full comparison.
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