From an article on charge.org
Small Business Owners of America started this petition to Square Capital, LLC and 1 other
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
Electronic Money Company is not holding any of our merchant’s monies in reserve!
If you are considering a switch from Square, contact us at 505-296-2847.
Square has literally no customer service. Electronic Money Company answers the phone live and fights for our customers like the 3rd monkey trying to get on Noah’s ark.