Do Not Use Square For Payment Processing If You Are A Small Business
Their payment processing includes Invoicing and Virtual Terminal services which are completely automated with no error feedback or access to a human being. If Square’s Robot Payment Processing System decides you are a high risk business, they can hold your money for 90 days and you will not get access to a human being to sort things out.
If a data entry occurs, like an incorrect CVV number, their robot payment processing system assigns you a high risk designation and begins a review – by a robot customer support system , with no provision for access to a human operator.
Here is the explanation from the Square website.
How long can Square hold your money? That’s right, Square can hold your money for up to 90 days. Three months without access to your payment processing system can be devastating for even the most established businesses.
Why is Square holding my money for 90 days?
While the review is occurring, we hold the funds to ensure that we understand what they are for and how your business is run so we can guarantee a safe trading environment.
This is why robot payment processing systems are so dangerous. They are designed to save money on human salaries so they limit customer access to human employees. Thus when systems fail to handle human data entry errors, these robot systems institute fraud protection measures, instead of providing error feedback for the human user.
The Square system is set up to prevent chargeback fraud, but holding your money for 90 days with no resolution can invite chargebacks by friendly customers who want to see that you get paid.
Avoid robot data entry or payment processing systems which have no provision to reach a human for help. Square has frozen $1400.00 of my customer payments for 90 days because of a CVV data entry error. Can your business afford this risk?