Square review: "Square froze my legitimate payment and closed my account for no reason"

I opened an account with Square without any issues. I registered my information, linked my bank account through Plaid which confirms that the account is verified in my name and processed a legitimate and fully documented payment from a client.

Everything seemed normal until, without any prior notice, Square suddenly closed my account after receiving the payment, vaguely claiming that they “could not support my business needs.” Before that, they made me go through an absurd and repetitive process: they asked for my business registration, passport, EIN number, invoices, business cards, and all documentation related to the payment and the client. Even after providing everything requested, they blocked my account without any logical explanation or access to a supervisor.

During this process, I made more than eight to ten phone calls. In every call, I was treated rudely, arrogantly, and with no empathy at all. They kept me on hold for long periods with no resolution. When I finally thought the issue was resolved, I received an email stating that my funds would be held for 90 days and released in February 2026.

This is abusive, unjustifiable, and completely unacceptable. Square allowed me to charge a client through their platform, processed the payment, verified my banking identity via Plaid, and still decided to keep my money for three months without any legal justification.

There is no other way to describe it: this is a systematic fraud. Holding funds that do not belong to them after authorizing a legitimate transaction and closing the account arbitrarily amounts to misappropriation.

Had I read the numerous reviews from other people who experienced the same thing, I would never have wasted my time with this company. It is evident that this practice is recurrent and deliberate, intended to hold customers’ money, earn interest, and release it only after weeks or months.

Square should be subject to a federal investigation. Their operating practices represent a serious violation of fair trade and financial transparency principles.

I do not recommend Square to anyone. It is a company that abuses its users’ trust, manipulates its processes, and withholds legitimate funds under technical pretexts.

Sincerely,
R. Palacio