Square
Weighted across nine legal categories. Lower is worse.
Executive summary
Square's General Terms are written clearly and even include helpful plain-language annotations, but the substance leans heavily in Square's favor. Square can suspend or close your account at any time for any reason, hold your funds indefinitely in some cases, and delete your data after termination without owing you anything. If something goes wrong, Square's total liability is capped at three months of fees or 500 dollars, it disclaims responsibility even for hacking of your account, and you must cover Square's legal costs for a long list of situations. Disputes go to individual arbitration with a class action ban, the terms declare that you are not a consumer for fee purposes, and you only get one year to bring a claim, though you can opt out of arbitration within 30 days of signing up. For a service that handles your money, you should read the Payment Terms too, opt out of arbitration if you want to keep your court rights, and keep independent backups of your business data.
Category breakdown
Acceptance of Terms & Scope
Contract formation and service boundaries
You are bound the moment you use any Square service, not only when you click accept, and your agreement automatically pulls in roughly 20 additional documents such as Payment Terms, AI Terms, and Bitcoin Terms. Some services like Bitcoin features and Neighborhoods on Cash App may be switched on automatically. On the positive side, the terms include plain-language annotations, a clear effective date, and links to each incorporated document.
Key findings
- Using any service counts as acceptance, even without clicking agree
- About 20 separate additional agreements are incorporated by reference
- Some products like Bitcoin features may be automatically enabled
- You also bind your business and its employees, contractors, and agents
- Plain-language annotations and a clear last-updated date help readability
Evidence from the document
By accepting these General Terms or by using any of the Services, you agree to these General Terms and any policies referenced within (“Policies”)
Square Bitcoin products and features may be automatically enabled.
require individual arbitration for any potential legal dispute (see Section 22)
Recommendations
- Open and skim each Additional Terms document that applies to a service you actually use, especially the Payment Terms
- Check your dashboard for auto-enabled features like Bitcoin and turn off what you do not want
- If you sign up for your business, make sure you actually have authority to bind it
User Accounts
Registration, suspension, and termination
Square can suspend or terminate your account at any time for any reason, with no stated appeal process, and after termination it may delete your data with no liability to you. In sanctions-related cases your funds can be held for an indefinite period, and if account ownership is ever disputed, Square declares itself the sole and final decision maker. You can close your account yourself at any time, which is the main user-friendly point.
Key findings
- Termination or suspension allowed at any time for any reason
- No appeal or cure process is described anywhere in the terms
- Square may delete your information and account data after termination
- Funds can be held indefinitely if Square suspects sanctions violations
- Square is the sole arbiter of any account ownership dispute
- You may deactivate your account at any time
Evidence from the document
We may terminate these General Terms or any Additional Terms, or suspend or terminate your Square Account or your access to any Service, at any time for any reason
we may (but have no obligation to) delete your information and account data stored on our servers
your account could be terminated and your funds could be held for an indefinite period of time
we will be the sole arbiter of such dispute in our sole discretion
Recommendations
- Export sales records, customer lists, and reports regularly so a sudden closure does not take your business data with it
- Keep your identity and business information current to reduce the risk of suspension for incomplete information
- Do not let your Square balance accumulate; sweep funds to your own bank account often
Intellectual Property & UGC
Content ownership and licensing
You keep ownership of your content, but you grant Square a perpetual, irrevocable, transferable, sublicensable license to use it in any media for any reason, including on Cash App and with third parties Square picks in its sole discretion. Even if you delete content or close your account, copies may persist in archives and caches. Square can also remove any content at any time without notice, and any feedback you submit can be used freely without payment.
Key findings
- License to your content is perpetual, irrevocable, and sublicensable
- The license covers any media for any reason, not just running the service
- Square can share your content with third parties chosen in its sole discretion, including Cash App properties
- Deleted content may persist in archived or cached copies
- Square has absolute discretion to remove content without notice
- Ideas and feedback you submit become free for Square to use
Evidence from the document
a worldwide, non-exclusive, royalty-free, fully-paid, transferable, irrevocable, perpetual, and sub-licensable right to use, reproduce, modify, adapt, publish, prepare derivative works of
in any media for any reason, including to provide, promote, facilitate, and/or incorporate into the Services on “cash.app” web domains
your Content may persist in historical, archived or cached copies and versions available on or through the Services
we have absolute discretion to remove Content at any time and for any reason without notice.
Submitting Ideas is entirely voluntary, and we will be free to use such ideas as we see fit without any obligation to you.
Recommendations
- Only upload logos, photos, and business content you are comfortable seeing reused in Square and Cash App marketing
- Keep original master copies of everything you upload
- Do not submit product ideas you may want to commercialize yourself
Data Privacy
Data collection, usage, and protection
The detailed rules live in a separate Privacy Notice and Data Processing Agreement, so this document itself gives you few concrete protections. What it does say tilts against you: Square disclaims any guarantee that your personal information is safe, states you provide it at your own risk, and takes broad advance authorization to share your account and transaction data with law enforcement whenever it reasonably suspects wrongdoing. Marketing texts and calls have opt-outs, which is a modest positive.
Key findings
- Substantive privacy terms are pushed to a separate Privacy Notice you must read yourself
- Square disclaims responsibility if attackers defeat its security measures
- Blanket advance consent to share your data with law enforcement on reasonable suspicion
- A Data Processing Agreement governs your customers' and staff data
- You can opt out of marketing emails, calls, and texts
Evidence from the document
you give us express authorization to share information about you, your Square Account, and any of your transactions with law enforcement
we cannot guarantee that unauthorized third parties will never be able to defeat those measures
You are required to familiarize yourself with the Privacy Notice prior to using the Services.
Recommendations
- Read the Square Account Holder Privacy Notice before signing up, since these terms make it binding on you
- Turn on two-factor authentication and limit which staff can access the account
- Opt out of promotional texts and calls if you do not want them
Payment & Subscriptions
Billing and subscription management
Subscription mechanics are reasonably fair: you can cancel any time from your account settings, keep access through the billing period, and get advance notice of price changes. The downsides are that continued use after a fee change counts as agreement, fees already paid are never refunded, and Square reserves the right to collect what you owe by pulling money from your transaction proceeds, your Square balance, or your linked bank account regardless of your chosen payment method. You also take on full responsibility, and an indemnity, for taxes.
Key findings
- Cancel any subscription at any time from account settings
- No refunds or credits for subscription fees already due or paid
- Fee changes take effect through continued use after notice
- Square can deduct fees from your proceeds, balance, or linked bank account
- All tax responsibility falls on you, backed by an indemnity to Square
Evidence from the document
You may cancel a Subscription Service at any time from your Square Account settings.
entitled to a refund or credit for any Subscription Fee already due or paid
We reserve the right to change any Subscription Fee upon reasonable advance notice. Your continued use of Subscription Services after notice of a change to our Subscription Fee will automatically establish your agreement to such changes.
we reserve the right to collect Paid Service Fees by deduction from your transaction proceeds, the Balance (as defined in the Payment Terms) in your Square Account or your linked bank account
Recommendations
- Cancel unwanted subscriptions before the first of the month, since fees are charged then and are nonrefundable
- Watch email and dashboard notices for fee changes, because continuing to use the service locks them in
- Budget for the fact that Square can pull owed fees directly from your bank account or sales proceeds
Limitation of Liability
Risk allocation and legal protection
Square excludes liability for direct damages as well as indirect ones, which goes beyond the usual industry disclaimer, and it flatly refuses responsibility for losses from hacking or unauthorized access to your account, a serious gap for a payments platform. Whatever survives those exclusions is capped at the greater of three months of fees Square earned from you or 500 dollars. Everything is provided as is with all warranties disclaimed.
Key findings
- Even direct damages are excluded, not just consequential ones
- No responsibility for damage from hacking or unauthorized account access
- Total liability capped at three months of your fees or 500 dollars, whichever is greater
- Services provided as is with all implied warranties disclaimed
- Cap applies regardless of legal theory, including negligence
Evidence from the document
IN NO EVENT WILL SQUARE BE LIABLE FOR ANY DIRECT, INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES
UNDER NO CIRCUMSTANCES WILL SQUARE BE RESPONSIBLE FOR ANY DAMAGE, LOSS, OR INJURY RESULTING FROM HACKING, TAMPERING, OR OTHER UNAUTHORIZED ACCESS OR USE OF THE SERVICES OR YOUR SQUARE ACCOUNT
SQUARE IS LIMITED TO THE GREATER OF (A) THE AMOUNT OF FEES EARNED BY US IN CONNECTION WITH YOUR USE OF THE SERVICES DURING THE THREE (3) MONTH PERIOD
THE SERVICES ARE PROVIDED “AS IS” WITHOUT REPRESENTATION OR WARRANTY, WHETHER IT IS EXPRESS, IMPLIED, OR STATUTORY.
Recommendations
- Treat the 500 dollar floor as roughly what you could recover from Square and insure larger risks yourself
- Secure your account aggressively, since Square disclaims hacking losses
- Keep independent records of transactions in case of service errors or outages
Indemnification
Legal responsibility allocation
The indemnity is entirely one sided and unusually broad: you must defend Square, its processors, and their affiliates against claims, tax assessments, penalties, and attorney fees arising from your breach, your use of the services, third party claims from your own customers, anyone using your login, and even any transaction Square processed for you. Square offers you no reciprocal protection anywhere in the document. Separate clauses add full tax indemnities on top.
Key findings
- One-way indemnity with no reciprocal promise from Square
- Covers tax assessments, penalties, interest, and attorney fees
- Extends to claims from your own customers about Square's data processing
- Extends to any transaction for which Square processed payment
- Additional stand-alone indemnities for tax errors
Evidence from the document
You will indemnify, defend, and hold us and our processors (and our respective employees, directors, agents, affiliates and representatives) harmless from and against any and all claims, costs, losses, damages, judgments, tax assessments
any transaction, purchase, good or service in respect of which Square provides, or provided, you with payment processing services
You agree to fully indemnify, defend and hold Square harmless against any Tax imposed by a Tax authority for failure to apply correct Taxes
Recommendations
- Carry general and cyber liability insurance sized to your sales volume
- Lock down account credentials, since you indemnify Square for anyone using your login
- Get professional tax advice; tax mistakes flow back to you under two separate indemnities
Modification of Terms
How agreements can be changed
Square can amend the terms at any time with whatever notice it alone deems reasonable, and simply posting a new version on its website can be enough, with notices deemed received within 24 hours. Continuing to use the services counts as acceptance, and your only real alternative is to close your account. Subscription fee increases at least get a promise of reasonable advance notice.
Key findings
- Amendments allowed at any time with notice Square deems reasonable
- Posting on the website can satisfy the notice requirement
- Notices are deemed received within 24 hours of posting or emailing
- Continued use automatically accepts the revised terms
- No right to keep operating under the old terms; the exit is account closure
Evidence from the document
We reserve the right to amend the Terms at any time, and to modify, discontinue, or impose conditions on any feature or aspect of the Services with notice that we deem to be reasonable under the circumstances
By continuing to use our services after these updates, you agree to the revised terms.
Such disclosures and notices are considered received by you within twenty-four (24) hours of the time posted to our website
Recommendations
- Watch for Square emails and dashboard banners about terms updates, since silence plus continued use binds you
- Recheck the arbitration opt-out window when a new arbitration agreement is pushed, as a fresh 30-day opt-out may apply
- Keep dated copies of the terms you accepted
Governing Law & Disputes
Jurisdiction and conflict resolution
Disputes go to binding individual arbitration with a class action ban and jury trial waiver, and you must complete a mandatory notice and conference process before filing anything. Two clauses are especially harsh: the terms declare you are not a consumer, putting you on the pricier commercial fee schedule with arbitrator hourly fees split evenly, and any claim must be brought within one year. Real mitigations exist: a 30-day written opt-out from arbitration, preserved small claims court access, remote hearings or hearings near your hometown, and structured mass arbitration procedures.
Key findings
- Mandatory individual arbitration with class action and jury trial waivers
- You are contractually deemed not a consumer, so commercial arbitration fees apply and hourly arbitrator fees are split evenly
- One-year deadline to bring any dispute
- 30-day window to opt out of arbitration by mailed written notice
- Small claims court remains available for qualifying disputes
- California law governs and court cases must be filed in Oakland or the Northern District of California
Evidence from the document
YOU AND SQUARE MAY BRING CLAIMS AGAINST THE OTHER ONLY ON AN INDIVIDUAL BASIS
YOU WAIVE ANY RIGHT TO HAVE YOUR CASE DECIDED BY A JURY AND YOU WAIVE ANY RIGHT TO PARTICIPATE IN A CLASS ACTION AGAINST SQUARE.
You agree that you do not intend to use the Service for personal, family or household use.
The arbitrator’s hourly fees (also referred to as Arbitrator Hearing Time) shall be split evenly between the parties.
Any action or proceeding by you relating to any Dispute must commence within one year after the cause of action accrues.
Recommendations
- Mail the arbitration opt-out form within 30 days of creating your account if you want to preserve court and class action rights
- Calendar the one-year deadline as soon as a problem with Square arises
- Use small claims court for smaller disputes to avoid splitting arbitrator fees
- Follow the written notice and conference steps exactly, since skipping them can get your case dismissed
Ex-TerCo provides automated analysis of legal documents for informational purposes. This is not legal advice. Terms can change at any time.