Questionnaire asking for bank statements

[techniheat]

After being with Square for 2 years now without any issues we have recently been told we need to provide more details about our business.  One of the questions asks for the last 3 months worth of bank statements so Square can better understand our business.  I replied to say I don't want to provide sensitive information and I don't need Square to better understand our business.  They have now blocked our account whilst we have money owed to us.   I have been told we will not get our money until we send them our bank statements, which now feels like blackmail.  Is anyone else having this issue ?

[Breffni]

Hi @techniheat, sorry to hear you're running into this. 

I understand that this process can be alarming and seem out of the blue when you've been processing for a while, but we review all accounts periodically as part of the ongoing review process at Square, given that is a regulated financial institution. 

We have a dedicated FAQ here which can provide further insight on this process, but for context on the bank statements;

"Reviewing financial information such as bank statements helps us better understand your business, including cash inflows and outflows and the ability to support any payment disputes should they arise. We want to make sure that your business is best protected should anything go wrong."  

Once you submit all of the relevant information, the Accounts Services team will be back in touch with you in 1-2 business days. 

[techniheat]

HI there

Thank you for coming back to me.  I understand from a point of view that to resolve disputes, to ensure that ourselves as Square's customer are financially secure.  However I would have thought this should have been done before we could open an account and then periodically reviewed.  At the moment it does not look right or fair that money we have received sat in square will not be transferred to our bank account until we submit this information.  We are basically being held to ransom over money that is ours, for something we were not aware we would have to supply.  I honestly do not know where we stand legally at handing this information over out of the blue as it obviously contains financially sensitive information and we don't know how  Square is going to use this data.

[k_atie]

Hey @techniheat, just stepping in for Breffni here. I totally understand the concern about giving away sensitive information. Let me provide a little more clarity. 

We don't ask for this information upfront as we like to make signing up for an account as easy as possible, so we don’t require this information at sign-up but give you the option to proactively provide it in the Square Secure portion of your Dashboard. We only reach out when we need a bit more info to verify your business. 

I'd refer back to the FAQ that Breffni linked above, as well as this post from one of our community moderators, to learn more about why Square needs this information.