Jack Dorsey-Founded Payment Processor Square Accused Of Withholding Funds From Retail Merchants
The companies complained to the New York Times that Square was restricting up to 30% of its customers' payments. Mobile payment processing company Square, founded by Bitcoin fanatic and Twitter CEO Jack Dorsey, is coming under fire from some of its customers for withholding customer payments.
An article in the New York Times He said thousands of retailers using Square's service had complained that the company was withholding up to 30% of the funds paid by its customers. Square, Inc. is an American financial services, business aggregation and mobile payments company based in San Francisco, California. The company markets payment products of from software y hardware and has expanded to services for small businesses.
- Multifunctional hardware wallet for easy cryptographic security, storage and use
- Touch screen for secure access to digital assets
- Offline security protects against hackers and malware
- Open source technology for financial privacy and stability
- Advanced security features include PIN and passphrase
The payment processors company in trouble
Some companies further claimed that Square was jeopardizing their livelihood by withholding payments for up to four months. A online petition asking Square to end the practice has more than 1,600 signatures. In response to the allegations, Square issued a release explaining that the restrictions, imposed last year, were in effect for only 0.3 percent of its customer base, and only affected 'risky' sellers.
It said it had expanded the practice to protect both retailers and consumers from losses during the pandemic. But, according to the journalist of the Times , Nathaniel Popper, some retailers provided evidence that their business activities had not raised any red flags. In response to traders who said they had been unable to question the company's policy. Square said it planned to provide more information about why they were facing restrictions on what it calls their "mobile booking".
The newspaper Times He claims that Square has been hit harder by the pandemic-induced downturn than other tech-focused payment companies, like PayPal. The San Francisco-based firm reported a loss of $106 million last month. Much of their business is centered around physical stores, which have had to close during the lockdown. Which forces the company to increase its reserves by 290 percent to protect itself against future losses.
