FAILD MOBILE CHECK DEPOSIT- A Dismal Failure

[daninmarina]

On Monday 11/10/25, I inadvertently attempted to make a mobile check deposit. By mistake, I didn’t realize I was logged into our other company account. 

Typically, if something like this happens on any other platform the matter would be handled immediately with a message sent to our office explaining the issue and how to correct it. 

Thats not the SQUARE policy however. Square, instead sets off alarm bells about potential fraudulent activity without any contact with our office. 

Starting on Monday morning I attempted to redeposit the mobile check, however, the square App shut down our account and denied access to our check account balance and denied a redeposit until there was a “ticket” filed after a Square review. 

The review would commence in two weeks but each time I requested assistance the time frame was always stated as “Someone will get back to you in 24-48 hours”. No one ever contacted me. Despite investing 27 hrs of telephone time in 5 days, Square has been unsuccessful with restoring our checking account. We cannot process anything financial until this gets resolved. 

I had the matter “ESCALATED” 2X to get a callback on Weds, which never came.  

i consistently find SQUARE support is short on “support”. Now, we were told to wait 2-4 days for an authorization opportunity to redeposit the check into the correct account and an additional 6 days to clear for funds to be available. 

In response to Square’s process we are:

1. Cancelling our Square account

2. setting up processing with another company with much lower processing fees

3. Taking legal action against Square. 

Dan

[Donnie-M]

@daninmarina I get your frustration. The Check 21 Act enables mobile deposit by giving a digital check image the same legal standing as the original paper. This created a new risk: duplicate deposits.

To manage this, federal rules (like Regulation CC) make the bank that accepts the deposit 100% financially liable for any duplicates. All banks have duplicate-detection systems.  This is usually done by a unique image hash and by matching up the check details. These systems automatically flag or reject any attempt to deposit the same check twice, even across different accounts.

I see the problem here is if you try to redeposit a check the same day, the bank must treat it as a potential duplicate or fraud. While it feels like overreaction, it was following the exact risk-management rules required to comply with the federal check system.

It would be like depositing a check at the counter, then asking the bank to undo the transaction.  That usually doesn't happen.  It would have been better to let the deposit go through, then just take the money out of one account and deposit it into the other.

I know it feels like you are singled out, and it should be simple to fix, but bad actors doing things like this have made fraud a bigger deal, and square has to protect your account, even from innocent errors if they might be fraud.

I get it, it sucks, but the immediate re-deposit is the red flag here.  It's ok to vent your frustration, I just wanted you to understand why it happened this way.  Switching to anyone else including stripe, chase, BoA, etc...you will encounter the same thing.  Hopefully this will help you in the future since you now will know what you can do to prevent it.