Square frequently freezes merchant accounts without prior notice or clear explanation. Users report waking up to find their accounts deactivated and funds held, sometimes for 90+ days. BBB complaints show this is a widespread issue affecting businesses with no violations. Multiple merchants describe losing access to thousands of dollars with no recourse.

Square routinely holds funds for 'risk checks' that can last days or weeks. One user reported every single payment being held despite years of good standing. Merchants describe cash flow nightmares where customer payments are stuck in limbo with no timeline for release. Square can hold funds for up to 90 days legally.

Square has experienced significant outages, including a 13-hour outage in September 2023 with minimal communication. In the last 7 years, StatusGator documented 1,938+ outages. Recent incidents in 2025 left merchants unable to accept payments for hours, with status pages using 'corporate speak' instead of clear updates.

Square's cloud-based Kitchen Display System completely fails during internet outages. Users not only lose active tickets but printers won't print from the KDS either. For busy restaurants, even brief connectivity issues can create chaos during rush hours with no offline fallback.

Users consistently report terrible customer support experiences. Phone support involves repetitive questions without resolution. One merchant spoke to 25+ support staff who couldn't explain why payments were being flagged. Email support often goes unanswered, and chat provides scripted responses that don't address specific issues.

When Square freezes accounts or holds funds, they refuse to explain specifically what triggered the action, claiming it's 'confidential.' Merchants are left guessing what they did wrong. BBB complaints show users contacting support 10+ times without getting answers about why their accounts were closed.

Since April 2023, Square no longer returns processing fees when merchants issue refunds to customers. On a $1000 online order that gets canceled, merchants lose $29.30 in fees permanently. This policy change was criticized on Hacker News and affects merchants with high return rates significantly.

Square raised their rates in February 2025. In-person transactions went from 2.6% + $0.10 to 2.6% + $0.15 per transaction. Card-not-present rates jumped to 3.50% + $0.15. For high-volume merchants, these increases add up to significant additional costs annually.

Square pushes merchants toward expensive proprietary hardware. Square Terminal costs $299, Square Register is $799, and the Register Kit is $1,339. While basic readers are free or cheap, businesses needing full POS setups face significant upfront costs that competitors don't require.

While Square's base offering seems affordable, there's a fee for almost every additional feature that could benefit a business. Advanced design features on Square Online are locked behind paywalls. Loyalty programs, advanced reporting, and marketing tools all cost extra beyond the monthly subscription.

Square removed their Android app from the Play Store for phones it previously worked on, pushing users toward Square's proprietary hardware with no notice. After updates, the app converted open check tabs to order tabs, breaking workflows for restaurants using Android devices.

Users report Square apps locking up on every screen, with inability to access activity, menu, profile, or help options after logging in. The software is described as 'so glitchy it's an epic fail' by some merchants. Dashboard bugs show wrong employee data when switching between timecards.

Square's new Register hardware lacks exchange options that the iPad app provides. Users running both devices find inconsistent functionality, with Square aware of this issue for years without resolving it. This forces workarounds and creates confusion for staff.

Square is unable to process payments from outside the United States, limiting businesses with international customers. This is a significant drawback for e-commerce businesses or services with global clientele. Users must use additional payment processors to handle international transactions.

Square processing sometimes becomes extremely slow with continuous spinning, causing customers to abandon transactions. Weak WiFi or internet connections can make the system unusable. Users report blank screens and authorization form issues when adding payment methods.