Product: Checking or savings account

This Complaint concerns unfair and deceptive acts by Block , Inc. d/b/a Square Capital LLC, a payment processor, and XXXX XXXX, Member FDIC , in contravention of federal law governing ACH transfers and availability of funds. 

The circumstance is as follows : 1. On XX/XX/2023, two ACH transfers of {$2000.00} and {$650.00}, respectively, were initiated by XXXX XXXX to my Square Checking Account ( the " Checking Account ), as payment for consulting services rendered to my client. [ Ex. 1 : Payment Confirmation for Invoice 1, dated XX/XX/2023 XXXX XXXX ] ; [ Ex. 2 : Payment Confirmation for Invoice 2, dated XX/XX/2023 XXXX XXXX  ]. Square notified me of these payments by email, adding that they were both " made by bank transfer and [ could ] take up to 4 business days to clear. '' Id. 

2. On XX/XX/2023, Square placed a hold on the Checking Account, claiming it needed information to " understand a bit more about [ my ] business so that... [ Square could ] better protect '' itself in case of a chargeback. [ Ex. 3 : Notification of First Payment Hold, dated XX/XX/2023 XXXX XXXX  ]. 

3. The First Information Request included immaterial questions about my business that were in no way urgent or time-sensitive. I promptly responded to the First Information Request on XX/XX/2023, at XXXX XXXX. See [ Ex. 4 : Confirmation of Receipt of Responses to Information Requests ]. 

4. Square did not make funds from the XX/XX/2023 ACH Transfer available for use until XX/XX/XXXX, XXXXsix days after the ACH transfer cleared. [ Ex. 5 : XXXX Export of All Account Activity, XX/XX/2023 ]. 

5. On XX/XX/2023, an ACH transfer of {$6100.00} was initiated by XXXX XXXX  to the Checking Account. [ Ex. 6 : Payment Confirmation for Invoice 3, dated XX/XX/2023 ]. Square sent a similar payment notification by email that contained the same availability disclosure as before. Id. 

6. Square did not make the funds from the XX/XX/2023 transfer available until XX/XX/XXXX, XXXXsix days after the ACH transfer cleared. [ Ex. 5 : XXXX Export of All Account Activity, XX/XX/2023 ]. 

7. On XX/XX/2023, Square placed a second hold on the Checking Account, claiming that it needed even more information about the business before it would release the hold. [ Ex. 7 : Notification of Second Payment Hold, dated XX/XX/2023, at XXXX XXXX  ]. 

8. Upon sending the XX/XX/2023 Notification of Second Payment Hold, Square immediately withdrew {$1000.00} from the Checking Accountan amount equal to the remaining funds from the XX/XX/2023 ACH Transfer. [ Ex. 5 : XXXX Export of All Account Activity, XX/XX/2023 ]. 

9. The Second Information Request asked for links to my online presence and business website and requested the same government documentation that I already submitted in satisfaction of the First Information Request. Notwithstanding the triviality of this request, I promptly responded on XX/XX/2023, at XXXX XXXX. See [ Ex. 8 : Responses to Second Information Request, dated XX/XX/2023 XXXX XXXX  ]. 

10. On XX/XX/2023, I contacted Square Customer Support by phone to inquire why Square seized the funds at issueand when I might expect their return. The Square Customer Support Representative, XXXX XXXX, was both combative and extremely uncooperativewhen when I asked to speak to their supervisor, I was informed that none were available. When pressed further, the representative hung up, and terminated the call. 

Squares funds availability policy for ACH transfers is as follows : FUNDS AVAILABILITY... 

Payment Processing Deposits are generally available in your Card Account within fifteen ( 15 ) minutes of your authorization of the payment processed through Square Services.

Direct Deposits to your Square Register account are available for Card transactions within one to two ( 1-2 ) Business Days from the Business Day on which such deposits are received as determined by the rules established by the XXXX XXXX XXXX XXXX XXXX  XXXX.. 

Funds availability may be delayed for a longer period than described above if : ( i ) we suspect a deposit is the result of fraud or an unauthorized transfer ; ( ii ) you have violated the terms of this Agreement, including by overdrawing your Card Account; or ( iii ) we experience a computer or communications equipment failure or other circumstances beyond our reasonable control, in which event we will advise you when to expect the affected funds to become available. 

[ Ex. 9, Square Checking Terms of Service ]. 

As my situation reflects, Square consistently fails to make funds available from ACH transfers in accordance with these terms and conditions by using its Information Request process to place improper holds on funds. Indeed, under the guise of fraud protection, my funds were seized and held by Square for more days out of my thirty-day trial period with Square Invoices than they were otherwise made available.