Square is WITHHOLDING Payments to SMALL BUSINESSES: During Covid-19 Epidemic for 120 Days!
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"Reserve has been placed on your account. To help protect your business from a negative account balance, 30% of your transactions will be placed in a reserve balance and released to your account 120 days after the original transaction date."
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Are you a small business owner that uses Square? BEWARE, SQUARE recently started WITHHOLDING funds from SMALL BUSINESSES: 30% for 120 DAYS
Square, Inc. has recently started a process, whereas they are not releasing funds to their merchants for 120+ days, as they are having cash flow problems and their business model is causing them to possibly go bankrupt. They continue to withhold income for 120 days to small business owners. There is no appeal process, no way to verify funds, contracts, methods, etc.
Small businesses can barely survive as it is, and now that Square, Inc. is withholding funds, many more small businesses are going to be closing because of Square.
Square charges transaction fees, and if you are any small business owner, the transaction fees add up. Square continues to take their transaction fees, and besides that, they are now withholding funds for 120+ days, without any recourse or isolated reason.
Square, Inc. was contacted and their response was: "Many factors are considered before we go forward with placing a rolling reserve on your account, such as:"
- New to Square. - NOPE - Same account for years.
- High-risk goods or services. - NOPE - Same clients, same services, for years.
- High rate of payment disputes. - NOPE - Never had one.
- Sporadic processing activity. - NOPE - Same clients, same cards, for a very long time, setup on monthly recurring invoices with autopay.
Square, Inc is not willing to release the income they are withholding from small businesses and has just recently started doing withholdings on a larger scale. Many small business owners are fighting to stay open doing the Covid-19 (coronavirus) epidemic.
This petition calls on Square, Inc. to end this unethical business practice. We are asking for a law firm to contact us and to represent us against processors that are doing this.
Nothing has changed for small businesses. Square is not paying interest on the money they are withholding either nor do they provide any appeal process. Many small business owners are fighting for survival and cannot afford for this to happen.
We will stop using their services immediately. - Economic Justice
California Department of Business Oversight
If you have complaints with respect to any aspect of the money transmission activities conducted at this location, you may contact the California Department of Business Oversight:
Department of Business Oversight Consumer Services
1515 K Street, Suite 200 Sacramento, CA 95814
(AGAIN NEVER HAD A DISPUTE - ALL RECURRING PAYMENTS - SAME AMOUNTS - SAME CLIENTS - SAME CREDIT CARDS):
We realize this is a challenging time for many business owners, and we remain committed to supporting you.
Beginning Wednesday, May 6th, 30% of each transaction on your Square account will be stored in your reserve balance, and will be released 120 days after the original transaction date.
What is the function of a reserve?
This reserve is a percentage of your processing volume that is set aside for a specific period of time to protect you and Square from unexpected loss events.
How do we make this decision?
We apply a reserve based on several different factors, including but not limited to:
- Goods or services that may be more prone to receiving payment disputes
- Length of time you’ve been processing payments with Square
- Business documents we may have on file
How does this affect my business?
This does not affect your ability to accept payments in any way. Your reserve balance exists as added protection in the event you receive a payment dispute from a customer and there aren’t enough funds in your linked bank account and available Square balance. That’s when the reserve balance is there to help.
Where can I learn more?
You can find more information along with the current balance of your reserve in your Reserve Report.
Can my reserve change at any point?
We’ll keep an eye on your account and conduct periodic reviews to determine if your reserve should be modified or removed entirely. Of course, we will always notify you of any changes. And you can also find more detail in our Terms of Service.
Report: Square Holding Funds on Business For 120 Days With No Chargebacks or Problems: https://esellercafe.com/square-holding-funds-business-120-days-with-no-chargebacks-problems/
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