thread Traditional Banks Do Not Like Square Banking in Banking With Square

Traditional Banks Do Not Like Square Banking

VLPSEP — Tue, 17 Feb 2026 18:46:31 GMT

I just wanted to share my experience I recently had involving my Square Banking usage.

We recently switched to Square Banking (this past Fall) as our full-time banking account and now our previous used buisness checking account is primarily used as a backup.

There was a need for more capital, so I applied to a few lenders. I was told by the lenders that "traditional banks don't like Square Banking" and required more revenue of me due to using this as my primary banking.

I don't know if anyone else has had similar experiences, but I wanted to share my story.

Re: Traditional Banks Do Not Like Square Banking

wajiha — Tue, 17 Feb 2026 19:26:19 GMT

Good to know. Did you ever get an offer from "Square Loans"? was there a big advantage going the capital route from lenders rather than square? Maybe interest rate?

Re: Traditional Banks Do Not Like Square Banking

VLPSEP — Tue, 17 Feb 2026 20:10:07 GMT

Again, we switched to Square for convenience, which is undeniable. We do currently have a Square loan so especially given that, it's all very easy, but it comes at a cost of potentially losing traditional methods of loans.

Re: Traditional Banks Do Not Like Square Banking

TheRealChipA — Tue, 17 Feb 2026 20:31:04 GMT

Interesting note to add. I read an article recently in a finance journal (can't remember which one) that stated that it's not just Square Banking. Traditional brick-and-mortar banks seem to be very leery of any fintech banking, period. Also, there are no regulations or laws that compel them to like or even accept information from those online banks, either. This is probably an area where legislation is going to take time to catch up to technology.

For now, I'd recommend always transferring money regularly from Square Checking to your regular bank, then transferring it back if you want to keep it in Square. Alternatively, you could always use Square Bill Pay to pay bills from your debit card, since that is still free right now. But it might be a while before this settles out and traditional banks are compelled to level the playing field.