Square merchant scam hurts small businesses
Complaint
Randi Payton
Country: United States
SQUARE or Squareup's merchant and payment online banking service (PayPals competitor) is having a negative impact on the Nations small businesses, creditors and our economy.
Like thousands of other Square members, as detailed below, the company took Marthas Vineyard Hoistice Health Retreat Through a long verification process. After proven that we are legitimate, it canceled our account and said it will hold a $20,000.
The payment is from a terminally ill cancer patient. The cost of treatment and supplies is very high for critically ill patients. Chronically ill patients come here as a last resort, because of our track record of improving their health
SQUARE or Squareup's merchant and payment online banking service (PayPals competitor) is having a negative impact on the Nations small businesses and our economy. The practice of canceling accounts and holding payments to businesses for 90 days is a major example why all businesses that transact consumer and business money needs to be regulated.
BBB complaints: http://www.bbb.org/greater-san-francisco/busi ... 0609/complaints
We need protection for our money wherever it is. Banking regulations need immediate expansion and oversight over nonbonding merchant services, which are acting more like banks.
ALL MERCHANT SERVICES. on both federal and state levels.
Square's unfair consumer practices and wide scale scam, affecting thousands of consumers, is taking advantage of the banking regulators slow pace in catching up with the Internet, which is more than 25 years old now. Or is Congress blocking that too?
I see that government is aware of the growing consumer risks with nonbank merchant services, like PayPal and Square. Let businesses regulate itself they say? Perhaps PayPal understands that good customer service is good for business, but Square is taking advantage of the lack of regulation and ripping consumers off.
Square has devised unexplained reasons to close thousands of accounts and freeze customer payments, so you cannot access the funds.
The absence of banking regulation in this new sector gives square the loophole it needs to earn interest on consumer and business funds, while causing cash flow shortage and hardship for consumers and businesses.
A small business needs customer payments to operate today. Square is just a pass through credit card payment. service. It has no right to hold funds. This should be a criminal charge. The small business is either performing the services or sold a product today or has completed.
The scam (see thousands of BBB and others online): Each time a customer makes a large credit card payment to your business, Square holds your funds and goes through a long process of verifying that you are a legitimate business. Banks and PayPal only does once to open a business account. Once you prove that you are a business again, Square still cancels your account for other unexplained reasons.
Okay, you closed the account, so I can bank somewhere else, you're thinking! Except that Square also decides to hold your funds for 90 days. Funds you need and budgeted to pay bills and creditors.
Banks and credit cards companies are regulated and must release funds upon request. I haven't had the problem with Paypal and a client of mine uses Square. Its the most insane thing I have ever heard of. Reminds me of the Nigerian Scam, which continues to expand throughout the world, because many consumers are still unaware.
The thousands of square customers who were scammed should file a class action suit and launch a major publicity campaign to promote awareness among other businesses and consumers. Perhaps PayPal should fund it, since it stands to benefit from squares decline?
© 2015 Square, Inc.
Like thousands of other Square members, as detailed below, the company took Marthas Vineyard Hoistice Health Retreat Through a long verification process. After proven that we are legitimate, it canceled our account and said it will hold a $20,000.
The payment is from a terminally ill cancer patient. The cost of treatment and supplies is very high for critically ill patients. Chronically ill patients come here as a last resort, because of our track record of improving their health
SQUARE or Squareup's merchant and payment online banking service (PayPals competitor) is having a negative impact on the Nations small businesses and our economy. The practice of canceling accounts and holding payments to businesses for 90 days is a major example why all businesses that transact consumer and business money needs to be regulated.
BBB complaints: http://www.bbb.org/greater-san-francisco/busi ... 0609/complaints
We need protection for our money wherever it is. Banking regulations need immediate expansion and oversight over nonbonding merchant services, which are acting more like banks.
ALL MERCHANT SERVICES. on both federal and state levels.
Square's unfair consumer practices and wide scale scam, affecting thousands of consumers, is taking advantage of the banking regulators slow pace in catching up with the Internet, which is more than 25 years old now. Or is Congress blocking that too?
I see that government is aware of the growing consumer risks with nonbank merchant services, like PayPal and Square. Let businesses regulate itself they say? Perhaps PayPal understands that good customer service is good for business, but Square is taking advantage of the lack of regulation and ripping consumers off.
Square has devised unexplained reasons to close thousands of accounts and freeze customer payments, so you cannot access the funds.
The absence of banking regulation in this new sector gives square the loophole it needs to earn interest on consumer and business funds, while causing cash flow shortage and hardship for consumers and businesses.
A small business needs customer payments to operate today. Square is just a pass through credit card payment. service. It has no right to hold funds. This should be a criminal charge. The small business is either performing the services or sold a product today or has completed.
The scam (see thousands of BBB and others online): Each time a customer makes a large credit card payment to your business, Square holds your funds and goes through a long process of verifying that you are a legitimate business. Banks and PayPal only does once to open a business account. Once you prove that you are a business again, Square still cancels your account for other unexplained reasons.
Okay, you closed the account, so I can bank somewhere else, you're thinking! Except that Square also decides to hold your funds for 90 days. Funds you need and budgeted to pay bills and creditors.
Banks and credit cards companies are regulated and must release funds upon request. I haven't had the problem with Paypal and a client of mine uses Square. Its the most insane thing I have ever heard of. Reminds me of the Nigerian Scam, which continues to expand throughout the world, because many consumers are still unaware.
The thousands of square customers who were scammed should file a class action suit and launch a major publicity campaign to promote awareness among other businesses and consumers. Perhaps PayPal should fund it, since it stands to benefit from squares decline?
© 2015 Square, Inc.
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