When Square Payments Closes Your Account
High risk merchants who can’t help thinking what other online business owners will scream “Square closed my account today!”, while they have a fleeting image of the pieces of their e-commerce dreams crumble.
The good news is alternatives exist to assist merchants recuperate and accept payments again. Let’s have a look at how to change your payments playing board, and be treated well..”fair and square from now on”.
Why and How Square Closes Accounts
In case you feel singled out, search online for Square closed my account. As of this writing, a Google search resulted in more than five pages of results, full of irate tirades and sad stories– including specific sites highlighting issues with Square.
Most of the merchants explain that they received an email from Square notifying the merchant of account deactivation. It goes something like this: “Our underwriting team reviewed your account and discovered a pattern of transactions associated with high risk activity.”
This happens even though merchants state their service type during the application process. No genuine underwriting happens, Square just says “yes” and merchants begin processing payments.
Keep in mind the phrase “pattern of transactions” that Square thinks points to high risk activity. In fact, the expressions “in our opinion” and “in our sole discretion” occur often in Square’s general terms and payment terms.
Area 3. Prohibited Industries (in the payment terms lists 28 sectors specifically banned from processing payment deals utilizing Square– including a generic “high-risk product or services” (number 20). How valuable is that?
why merchants get the feel of dread when Square payments closes your account.
Dissatisfied merchants report these repeating issues:
Square deactivates your account without warning and alerts you by email. They announce you’re taking part in forbidden activities of some kind, although you were authorized for an account after stating your kind of company.
At the very same time, Square suspends payments to your merchant bank account and holds your funds in a Reserve represent 30-90 days. From Section 14 of the payment terms: “We might require a Reserve for any reason … in an amount as reasonably figured out by us to cover possible losses to Square.”
Perhaps most egregious is the absence of access to customer support (such as it is) to ask for an explanation or figure out a solution. Square cuts off phone access instantly with account deactivation– and emails go unanswered– so merchants never know what actually occurred.
What can you gain from this? Read thoroughly all of the terms, and note what others need to state before you sign up.
Payment aggregators might be easy to start with, however frequent account terminations, and frozen funds held in reserve is the death rattle of countless e-commerce organisation.
Better Options Exist
No need to lose your voice from bawling when Square payments closes your account. If this occurred to your business for any factor, you need to know that there are better alternatives readily available. Process payments once again while also safeguarding your company from chargebacks and scams.
High-risk merchant accounts (both domestic and overseas) offer special benefits unavailable from payment aggregators like Square, PayPal, and Stripe. You’ll also receive the earnings you’ve made more quickly (generally 48 hours).
Look for a full-service payment option supplier to help find the right merchant account for your service, based on your unique business needs. The right provider cultivates numerous banking relationships, which they’ll utilize to help you land a dedicated merchant account.
Take the Next Step: Give FinTechMerchantAccounts.com a Call
Connect to a specialized high-risk payment processor after you’re weary from dealing with Square and the other usual suspects. FinTechMerchantAccounts.com specializes in high risk payment processing for all sorts of industry sectors.
Far from being a “me too” kind of processor, we provide decades of payments market experience and proficiency– both international and domestic– together with an excellent industry credibility that sets us apart from our competitors.
In addition to e-commerce payment processing services, we take advantage of market relationships and payment processing competence to offer consultative services and guidance customized to your specific requirements.
Our e-commerce merchant processing customers are fantastic business partners for us. Each is more than just an account number.
Due to the fact that we wish to be your business partner, FinTechMerchantAccounts.com in addition to tailoring your specific business need we will also make sure that the payments option you pick provides the versatility desired to scale up for future growth So you never need to deal with another payment processor again.