Why would Square deactivate my account?

11 Oct 2023 By PAYCEC

Square closes your account for many reasons, most of which threaten its integrity, security, and compliance with financial rules. The following are some of the most prevalent causes of account deactivation:

• Violation of Square's Terms of Service: Square has a set of rules and guidelines that users must follow. If you participate in fraudulent activity or questionable transactions, you risk having your Square account permanently deactivated.
• Suspicious or High-Risk Activity: Square employs state-of-the-art fraud detection mechanisms. Any unusual spikes in activity, peculiar transaction patterns, or a flurry of disputed payments can lead to account deactivation.
• Failure to Provide Requested Documentation: Sometimes, Square may ask for additional documents or information for verification. Failure to produce these papers on time may result in your suspended Square account.
• Chargebacks and Disputes: A deluge of chargebacks or unresolved customer disputes can spell trouble. Square may view this as a red flag, indicating potential issues with your business or customer satisfaction.
• Regulatory Compliance: Noncompliance with anti-money laundering (AML) or know-your-customer (KYC) regulations can be why Square closes your account.
• Account Inactivity: Sometimes, inactivity can be the culprit. If your Square account sits idly for an extended period, it may be a security risk.

The good news is that if your Square account faces suspension, you can often appeal the decision. Reach out to Square's customer support to understand the reason behind the curtain drop and work together to resolve the issue.