Square Problems & Issues
Real user-reported problems, complaints, and limitations for Square. Based on analysis of 15 signals.
Issues by Category
Random account freezes without warning
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.
Payment holds delay business cash flow
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.
Major service outages affect payments
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.
KDS stops working when internet goes down
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.
Processing fees not refunded on refunds
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.
Transaction fees increased in 2025
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.
Hardware is expensive and proprietary
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.
Add-on features require extra fees
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.
Customer service is unhelpful and repetitive
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.
No transparency on account 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.
App glitches and freezing issues
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.
Register lacks features iPad app has
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.
Android app removed from non-Square hardware
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.
Cannot process international payments
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.
Connectivity issues cause abandoned sales
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.
Regret Patterns
Common reasons users regret choosing Square.
Account frozen after first large sale
New merchants often get flagged after their first significant transaction. What should be a celebration becomes a nightmare when Square holds the funds for 'review.' Users report being unable to access thousands of dollars for weeks with no explanation or timeline.
Realized fees are expensive at volume
Merchants who started small and grew discover that Square's flat-rate fees cost significantly more than interchange-plus pricing. A business doing $20K/month in transactions could save $100-200/month with alternatives like Helcim.
Needed international payments Square doesn't support
Businesses expanding globally discover Square only processes US payments. Adding a second payment processor for international customers creates complexity and additional fees they didn't anticipate.
Locked into expensive proprietary hardware
After investing in Square Register ($799) or full kits ($1339), merchants realize they're locked into Square's ecosystem. Switching processors means abandoning hardware investment or maintaining two systems.
Outage during busy period lost sales
Experiencing a Square outage during a busy weekend or event when unable to process any payments. Some merchants report losing thousands in sales during multi-hour outages with no compensation from Square.
Customer support couldn't resolve critical issue
Facing an urgent problem (account freeze, missing funds, technical issue) and discovering Square's support can't or won't help. Users describe speaking to 10+ representatives without resolution, losing trust in the platform.
Refund fees ate into margins
Businesses with higher return rates (clothing, seasonal items) discovered that losing processing fees on every refund significantly impacted margins. A store with 10% returns loses substantial money annually in unrecoverable fees.
When Square Breaks Down
Specific scenarios where Square fails or underperforms.
Transaction volume exceeds $10K/month
At this threshold, flat-rate fees become noticeably expensive compared to interchange-plus alternatives. The simplicity of Square no longer outweighs the cost savings available elsewhere. Additionally, higher volume increases risk of triggering fraud detection.
Business starts selling internationally
Square cannot process international payments. Businesses must add a second processor like Stripe or PayPal for global customers, creating complexity in reconciliation, reporting, and customer experience.
Restaurant grows to multiple busy locations
Square for Restaurants limitations become apparent: internet-dependent KDS fails during outages, limited table management compared to Toast, and per-location pricing ($49-149/mo each) adds up. Purpose-built restaurant systems become more cost-effective.
Business experiences first account freeze
When Square freezes an account without warning, holding funds for weeks, businesses realize the platform risk. Even if resolved, the experience often triggers evaluation of alternatives with better reputation for merchant support.
Internet connectivity becomes unreliable
Square's cloud-dependent system struggles with poor WiFi. Transactions spin endlessly, KDS stops working, and customers abandon purchases. Businesses in areas with spotty connectivity need systems with robust offline modes.
Customer return rate exceeds 5%
With Square no longer refunding processing fees on returns, businesses with moderate to high return rates face significant margin erosion. A clothing boutique with 15% returns loses thousands annually in unrecoverable fees.
Need for advanced inventory management
Retailers with thousands of SKUs, complex variants, or multi-warehouse needs outgrow Square's inventory capabilities. Migration to Lightspeed or Shopify POS becomes necessary, often requiring painful data migration.