Square Pay Service is Withholding Merchants’ MoneyPayment company Square is withholding thousands of dollars of its customers from the retail business with the intention of hanging on to that money for months. Repair retailers need to immediately switch to payment integration in their computer repair shop software.
Square is one of the most used payment service providers in five giant economy countries: the US, the UK, Japan, Canada, and Australia. Merchants from all kinds of retail industries, food, clothing, repair, plumbing, and even construction, use Square to accept payments for their sales.
The company has been reported to be going through a “significant slowdown” during the coronavirus pandemic. With a 6 million loss in the first quarter, it looks like Square has found the way to keep itself afloat – by feeding on its customers’ money.
The interesting bit is that the CEO of Square, Jack Dorsey, who also runs the giant social media platform Twitter as CEO, has been in the limelight for his coronavirus relief donations. Jack donated millions of dollars for crisis relief and got public applause for his generous action. Soon after, he is facing a lash out from his angry customers who believe that his big pay service company was knitting this plan all along to get a payback from their poor businesses.
Thousands of retailers that are using Square for payment processes at their small businesses have complained about the money withholding problem. They say that the company is holding back a major chunk of 20 to 30% of their money transactions with a warning of paying them after four long months.
Square has told its customers that less than 0.3% of them will be affected with this money withholding action aka the “rolling reserve”, which, they say, is intended to protect their businesses from customers asking for refunds and risky transactions.
Square also said that it will withdraw and then slowly roll out these flagged payments for only those customers who are “risky sellers”. Apparently, the definition of a risky seller is someone who takes a pre-payment for a future product or service and/or deals with goods or services that are “prone to dispute”.
However, Square customers are unable to make any sense out of these statements and terms. The affected businesses have provided proof of their recent sales to show that they had not even a single risky or so-called flag transaction in their record.
2020 has hit the retail industry very hard as it is. Blow after blow, businesses are crumbling down like papers. The retailers are still fighting with the coronavirus pandemic, reopening their stores with safety action plans, trying to get back on their feet. Just when their sales are coming back and numbers in their POS systems are finally going up, boom, the pay service guys start stomping on their hard-earned money.
The unhappy Square customers are saying that the company is unfairly keeping their money and butchering their businesses at the most unfortunate and economically vulnerable time. All for the sake of saving itself from hitting rock bottom.
Team Square does not even reply to customers’ requests trying to get in touch to see what’s going on. Taking their rights away to know the answers to their questions, the company is being rude and unfair to its customers who are fighting with a historic economic crisis.
For example, a small enterprise called Legal Knock works for law firms by providing them the service of website development. The company owner, Sean Weber, reported team Square’s unreasonable money withholding followed by their misbehavior. Legal Knock never had a “risky customer” demanding a refund and yet their payment service provider company, Square, withheld 00. This happened to them back in May and Sean immediately tried to contact Square’s customer support team but failed. He didn’t get a satisfactory explanation even after getting their response and ended up getting blocked by Square on Twitter.
Small retail enterprises are forced to lay off employees and take out loans to get by this difficult time of the year. Not sure how long it is going to take for the world to go back to normal, the retailers are desperate for each penny that they can earn.
Another Square customer and construction business owner Jesse Larsen has shared his experience with his payment service provider company. After losing thousands of dollars in the hands of Square and selling his boat and other personal property to make ends meet, Jesse believes that small businesses like his may survive the coronavirus crisis but Square’s greed will break the camel’s back.
The growing chorus of these angry retailers has started a petition against Square to stop this ridiculous treatment and drop the ”rolling reserve” as soon as possible. 13,00 signatures have been recorded so far to put an end to Square’s move of withholding its customers’ funds.
If you are a repair service provider that uses computer repair shop software’s Square integration to carry out credit card transactions, you may also be in hot waters. Do not take the risk of coming under the label of “risky seller” and losing your money in the name of business protection.
Look for payment integration in your computer repair shop management software that works in your region and start processing your card payments with it. If your existing POS software does not have a better service option for you, go for an all-in-one repair shop software that not only has a number of payment integrations but also contactless payment. Stay safe and stay in business!
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