SquareUp: A Word of Caution

In the past I have written about SquareUp as a tool for meeting minimum spend requirements. I have always recommended using this trick with caution and in moderation and this post is to reiterate that advice.

 

I received an email from a reader using the SquareUp service that an inquiry was being made into his account activity. As it turns out, they didn’t seem to like that there was a high proportion of gift card activity on the account. Square asked for information to support the business activities. Not satisfied with the response, the account was terminated. It appears that the funds due to the account holder are also being held for 30 days. In order to protect the anonymity of the reader, I cannot provide any more details about this specific case. I bring it up only to highlight that aggressive uses of the Square service can result in account cancellation.

 

If you use the service, keep in mind the restrictions and limitations that are in place:

 

 

Also, remember that Square can terminate your account at any time:

 

 

Before using this service you should review the User Agreement.

 

This is a relatively new service and many of us are trying to figure out how useful it is. A special thanks goes out to the reader who tipped me off to the possibility that Square may act swiftly on an account that looks questionable.


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5 Responses to SquareUp: A Word of Caution

  1. Everett says:

    Have you ever heard of SquareUp keeping someones money when they violate the TC? Permanently? I’d immagine it would be illegal to do more than just hold the money for 30 days, so worse case scenario you just have your assets frozen temporarily? I just got a square reader the other day and signed up for the AMEX gold today with the 10k spend, so I was looking to utilize this to do so. In your experience, what has been a safe limit to spend with them each month without getting closed down?

    • I have not heard of SquareUp keeping anyone’s money.

      I haven’t used Square enough to say what is a “safe” amount of usage. I have considered it to be a reasonable “Plan B” in case I find myself in a pinch.

      As long as the usage patterns can be attributed to legitimate business activities, I don’t see why there would be a limit. It seems the issue comes from using too many gift cards as a form of payment. I would guess you would get less scrutiny (keep in mind, this is only a guess) if you have a higher level of actual credit card charges. However, if you are making payments from your CC to your Square account you run the risk of trouble from Square and your CC company.

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  3. Anonymous says:

    How many days exactly from the 30 days did you receive the money after the said they are holding your funds?

  4. Joshua says:

    Square just cancelled me without any notice after a inquiry that we won and are now fighting in court. I believe it may be for the make a payment button I created as well… So frustrating when can’t they just say stop that… Spent so much time developing our store at website.stleinc.com …. Since when is web development high risk…

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