Is anyone else out there using Square to take credit cards?

The other day a client made a payment to me. It's the largest payment I've taken using Square as of yet. Square emailed me advising that they are holding the payment until I provide some info about my business. I had to log into my dashboard and provide some documents. I also called them to learn a little more about what's going on.

It's obvious that they are looking to prevent fraud. Which is fine. However, they have charged my client's card, and have his money. I do not have the money and will not be purchasing the equipment until I do, as is my policy and my client is aware of this.

I have no doubt this will be resolved shortly but I'm a little pissed of that Square chose this moment to vet me. If they are concerned that people are committing fraud using their system, wouldn't they vet the business BEFORE allowing someone to use the system?

I have been using the Square Reader for about a year now and NOW they are concerned?

Just wondering if anyone has been through this with them.

Intuit Go Payments did this to me.  They insisted on speaking with the client as well, who had left for vacation.  I felt it made me look like I am not a legitimate business and worried he thought I was gonna steal his money and run.  Luckily that didn't happen, but I never processed another card with Go Payment.  I no longer accept payments over $1000 on a CC so haven't run into this issue with Square.

Pretty common.

What is your average payment history VS. this payment? When you signed up they asked you your annual sales and estimated CC charges, it’s likely you have exceeded both.

I had this happen to me with intuit years ago. They held it for 21 days. I couldn’t hold the project up and I knew it would clear so I went ahead and just ordered the equipment. When I signed up for square a few years ago I was able to get a form from intuit to prevent this from happening with square.

All of this being said. I now no longer accept credit card payments over $2500. Happy to take CC payments for a 4% charge. That charge offsets most points cards so clients just pay via check.

I've had good success using them. When I made my first $1000+ transaction there was some sort of communication with them, but it still went thru in a day or so. Most of my transactions with them are small and go thru imediatly.
At this point I would probably have to do a 5 figure transaction to get any other delays.

I'm usually doing transactions in the low to mid 4 figures. This one is low 5 figures and is my first over 5. I also charge a credit card fee but this guys wants his points.

My concern is that they asked for info that I thought would be plenty sufficient like my business license, DL, and 3 most recent bank statements for the account square deposits into. Those statements all showed Square transactions. But apperently that didn't prove I actually exist. After supplying that the asked me for a copy of the contract with the client and my return policy (not sure how that can be useful for them). I have provided those things and am now waiting the 1-2 business days to hear back.

If those documents I first submitted aren't enough then how is a contract going to help?

I know none of you can help with this. I'm just frustrated. I'm out of town with my family until Sunday. Was hoping to have equipment delivered this week for work on Monday. I feel like they would have addressed something like this long ago. It makes me look unprofessional. And I'm not willing to flex on my policies. There's no way I'm having the gear delivered and then have to refund the CC payment in order to get a cheque.

I'm going to have a beer. Haha.

What about making two separate smaller transactions?

Wow, so you require payment up front, the customer pays and you're holding up the deal because your CC company sucks? You basically just told your customer that you need his/her help to fund your business.

I would do the same thing he is. Until the money is in your account, well, it's not.
You never know what's going to happen.

I've used Stripe for about 3 years and i've processed over 100k through them without an issue.

I've used Square for years.  Initially you have a limit.  You've hit it, all you need to do is contact them, they'll send you over some paperwork that only takes a few minutes to fill out, and it'll speed everything up and the next time you won't have the issue. 

Thanks everyone.

Square replied a few minutes ago and I'm good to go. I have inquired about raising my limit and/or taking steps to ensure this doesn't happen again.

As far as funding my business goes, that's genius. I have a great raport with this guy. I'm going to get him to co-sign a van for me, and if you send me $12k worth of speakers I promise to pay you later.

Point of view.

I wouldn't put it that way. I'd say the credit card company sucks so bad they won't tell you in advance how badly working with them can turn out.

The net result to the client is the same, but it's not the dealer's fault, it's the credit card company's fault.

It sucks you can't trust your own credit card company. I'm sure they'll pay out but that's bs.

They have an initial limit that's all.  I think it's something like $1500 per day.  Understand that most people who are using Square are doing $5-$20 at a time..It takes a long time to get to $1500 that way.

I had the exact same issue when I initially signed up with them.  They send some paperwork, you fill it out and they bump you up to $25k.

With Square, unless it's Friday, 100% of the time you'll have your money the following day. And if you're in a pinch, they'll deposit the money into your account instantly for a larger percentage.  Not that I'd necessarily want to use that feature, but for somebody who might be in a pinch, it's a great feature.

They also do loans that they'll deduct 10% from your credit card transactions.

Square has been good and they were upfront about the limits.  When I had the issue with Intuit I mentioned above, there was never a mention of limits AND I had processed payments that were larger than the one they were busting my balls on.