Square: Scare Much Ado about Nothing
May 16, 2013
A mini furor erupted this week when a user notification from Square created a stir among merchants who fear it signals a change in policy that will result in payment holds. Published reports indicated that Square updated its seller agreement with a new controversial passage.
“If you accrue more than $2,002 in keyed-in sales during any trailing seven-day period,” the company’s note said, “Square will defer depositing the amount in excess of $2,002 for thirty days.”
Square, however, said the change was simply semantic and that the passage in the agreement is identical to earlier version with one exception. The phrase “keyed-in” was substituted for “card-not-present,” which, in relation to the Square solution, are synonymous. The company also said customers who accept keyed-in transactions more often can request an increase to their payout amount.