When you've received an email from Square saying that your account has been closed, you're likely surprised by this news. After all, there's no reason you think that should happen. Your app is in full compliance and you've not run a business on the platform that is outside of their terms of service. If they have closed your account, they will state why they have done so in the email. But what do you do now? By first understanding what happens and why it happens we can better understand our options. Let's dive in:
What happens when your account is terminated?
Square account closures often start with an email notifying you that your account has been shut down. This means that they are unable to continue servicing you and your business. This can occur for a number of reasons, but it's important to understand that their decision is permanent.
If you didn't receive this email or if you don't have access to the email associated with your Square account, you can contact their support team by calling (855) 700-6000. When an account is shut down, Square places a hold on any funds that you may have processed with Square for (180) days. They do this because, as a payments processor, they’re required by card networks to prevent fraud by holding funds in order to cover any potential disputes or chargebacks that may arise from those transactions. You can find more information about these requirements by referring to Square's support page.
After the hold period ends, they will release any remaining funds owed to you via direct deposit into the bank account listed on your Square Dashboard. One thing to keep in mind is that if there are disputed transactions in your account when it's shut down, they will be charged back after the 180 day hold period ends and deducted from your remaining balance.
