Literally been robbed by square. This is not right! forcing us to do a refund on 100k transaction

[camplifecustoms]

We had 111k in credit card transactionsfor a sale of a vehicle we did. We provided every document we needed to squares team to prove the transaction was legitimate. to complete this they needed bank statements, purchase orders, signed credit card authorization forms. WE DID EVERYTHING! to then be told we are denied the ability to transfer the money to our LLC bank account. So then they email us and say we need to issue a refund to the customer and seek another form of payment. WE DO and then learn that square charges a refund fee for the 3.50% debited from our business account.   ARE YOU KIDDING ME!!! THIS IS ACTUAL STEALING FROM A SMALL BUSINESS. HOW IS THERE NOT A CLASS ACTION LAWSUIT OVER THIS. 

[TheRealChipA]

Hi @camplifecustoms. First, I’m sorry to hear about this situation. You don’t say why the transactions were disputed by the customer, but I’m sorry that the card holder’s bank didn’t see things your way since you say you had the necessary documentation. 

While they only started doing this recently, Square — like every card processor — doesn’t refund processing fees any longer. This is because the card networks do not refund them, either. I was always surprised that Square bucked the norm and refunded fees for as long as they did, personally. Regardless, their policy is the same as it is for everyone now. Processing fees for refunded transactions come out of our pockets and aren’t refunded. 

It isn’t theft. And no court would rule it as such. Courts have consistently ruled that card networks and processors are on solid ground in withholding processing fees for refunded funds. It is a cost for accepting cards for such large amounts. I know that is no comfort. But it is the way things are. They only real recourse you have is to get your money another way and to add those fees to the amount you are owed, the same as you would do if the customer had given you a bad check. I’m sorry I can’t give you better news. 

[UserName00]

I'm in the same boat, but only for about $45K.  Funds have been locked for almost 2 weeks. My customers card was swiped at the terminal. No dispute from customer or CC company. I also provided Square with Bank statements, signed invoice, signed contract, signed CC authorization form. Zero communication from them other than "wait for an email."

[UserName00]

I'm in the same boat, but only for about $45K.  Funds have been locked for almost 2 weeks. My customers card was swiped at the terminal.  I also provided Square with Bank statements, signed invoice, signed contract, signed CC authorization form. Zero communication from them other than "wait for an email."

[UserName00]

Square is holding my funds from transferring to my bank for the amount of about $45K.  Funds have been locked for almost 2 weeks. My customers card was swiped at the terminal. No dispute from customer or customers CC company.  I also provided Square with Bank statements, signed invoice, signed contract, signed CC authorization form, and everything else they asked for. Zero communication from them other than "wait for an email."

Anyone else? how did you get it resolved? Who did you talk to?

[UserName00]

I joined to get advise on how to get square to transfer my money, they have been holding $45K for about 2 weeks. 

[ryanwanner]

@UserName00  There are a few reasons why your funds are being held:

-If that dollar amount was in one or two transactions, I fully understand why there's a hold. In the banking world, anything over $20k (if I remember correctly) immediately triggers a lot of red flags, and usually the feds have to get involved to make sure that there isn't any money laundering or other touchy subjects going on. The bank doesn't want to be held liable for whatever someone is trying to do on their systems, which is why the feds are present. Square is no different with this line of reasoning. They have some serious checking around that needs to happen to keep themselves safe.

-If you're a new account PLUS have this large of volume right off the bat, Square is definitely going to hold funds to make sure you're on the up-and-up. This is standard practice with any financial institution.

-If you've had a Square account for a while and this dollar amount is outside your usual transaction averages, it will trigger the same type of checking around that I mentioned above.

Overall, your best bet is to hang tight. Yes, it sucks and yes, you want your money. This is completely understandable. Square just needs to make sure you're not doing anything shady on their systems.