Jack Dorsey’s Payment Processor Square Withholds 30% of Payments During Coronavirus Pandemic

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Twitter CEO Jack Dorsey’s other company, payment processing service Square, is withholding between 20 and 30 percent of the money that merchants receive from customers. One small business owner commented: “It may not be the coronavirus that puts us out of business but actually the greed of Square that breaks the camel’s back.”

The New York Times reports that Twitter CEO Jack Dorsey’s payment processing firm Square is under fire from merchants claiming that the service is withholding between 20 and 30 percent of the money that they receive from customers. Square is used by many small businesses to process credit card transactions, now many are claiming that Square is withholding up to 30 percent of their payments for the next four months.

Square reportedly told merchants that it was withholding a percentage of their payments in order to protect against risky transactions or customers who may demand their money back. However, several merchants have provided records showing that they have had no returns or risk flags.

Many small businesses claim that Square’s actions are placing them in financial difficulty at a time when many businesses are struggling due to the Wuhan coronavirus pandemic which has forced many businesses to fire staff, cancel expansion plans, and take out loans just to stay open.

Jesse Larsen, the owner of PennyWise Contracting, a construction company in Olympia, Washington, which uses Square as a payment processor commented: “It may not be the coronavirus that puts us out of business but actually the greed of Square that breaks the camel’s back.” – READ MORE

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