Hello, I apologize for the delay. I wanted to look into this more thoroughly before responding, and I reached out to someone else for clarification. This is a very good question, especially with the many new banking options available through Square.
I currently have a savings account, and I just opened a checking account while opting out of the card feature. This area can be a bit tricky and somewhat ambiguous.
1. Regarding your regular bank account or savings account, absolutely yes! If you have a Square savings account, I can guarantee that you can. As for a checking account, based on my findings, I would say there's a 99% all would be good. To play it safe and avoid any complications, I recommend instantly transferring a certain amount from your checking account to your savings and completing the transaction that way.
The more complicated situation arises with credit cards. Personally, I wouldn't recommend using a credit card for this purpose. For instance, I can't run my Chase card through Square every day to deposit money into my account or to make payments on my loan—this is a definite no-go.
When I explored the fine print, which is backed by Mastercard, Visa, etc., I noticed that certain regulations and trademark rules still must be followed by law. Unfortunately, I couldn't find a clear "yes" or "no" answer despite my research at 3 AM. However, I have seen others using their Chase or Capital One cards with Square, which is explicitly stated as a major no.
Since I didn't accept the card option, I missed out on the full disclosure provided by Square. I'm unsure of your specific situation with Square regarding the points mentioned above. If you have a savings account, transferring $3,000 from one account to another is very straightforward.
For the checking account, in my opinion, it's safest to handle transfers instantly, and I couldn't find anything that prohibits this. You can link your account and routing number to make a payment towards loan prepayment or to transfer funds to savings—and then you're all set.
As for credit cards, I would recommend calling Square directly to double-check. I read the fine print at 3 AM, and I found it to be quite convoluted, providing no straightforward answers.
Good luck, and please keep me updated on how it goes. By the way, can I ask what your current percentage is? I want to ensure you’re aware of the timeframe and hold, and then you go back into the algorithm.
