Consumer complaint received 2025-11-30 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Money was not available when promised — 
Company: Block, Inc.
State: OH

Complaint narrative:
Dear XXXX XXXX XXXX XXXX XXXX XXXX XXXX Department : I am writing this letter to formally submit a consumer complaint in accordance with Section 1.2 of the California Financial Code and the consumer protection regulations of the XXXX XXXX XXXX XXXXXXXX XXXX. I am writing this letter to describe the situation of " XXXX XXXX '' ( operating under the name " Square '' ), located at XXXX XXXX, XXXX XXXX XXXX, XXXX. In XXXX, I used Square 's payment processing service to receive credit card payments for my business. Square illegally withheld the {$6600.00} that I was legally entitled to for over three years, which violated the state law requiring prompt transmission and distribution of merchant revenues. I request that the XXXX XXXX XXXX XXXX XXXX take immediate action to force Square to return the full amount and accrued interest, and to investigate its systematic holding of funds and impose appropriate penalties. Summary of facts : In XXXX, with the license I obtained ( XXXX License Number [ XXXX ] ), I used Square 's service to handle credit card payment transactions for my business. I successfully processed a total of {$6600.00} in merchant funds transactions and deposited them into my Square account balance. Square closed my account without prior notice or reasonable grounds, instead citing vague " high-risk activities '' ( although we had no refunds, disputes, or violations ). In the termination notice in XX/XX/XXXX, Square explicitly stated that the remaining {$6600.00} balance would be released to my associated bank account approximately 10 months before ( in accordance with its standard policy, within 90 to 120 days after account closure ). At that time, I believed this statement and did not take further action. However, the funds were never released. Despite multiple follow-up inquiries through Square 's support portal, phone ( XXXX ) and email ( XXXX ) from XXXX to XXXX - including requests for a " funds release review '' and the provision of relevant documents ( such as customer invoices, transaction records ) - Square still did not release the funds. Their responses were vague, merely repeating general statements such as " indefinite freeze '', but did not provide any evidence of ongoing risks, legal freezes or offsets ( such as no outstanding refunds or fees ). As of XX/XX/XXXX, all {$6600.00} in my account remained frozen, causing serious financial difficulties for my small business, including the loss of business opportunities and inability to make payments to suppliers. Violation of Square 's service terms : Square 's own general service terms ( effective since XXXX, available at XXXX : XXXX ) and payment terms authorize temporary reserves for risk mitigation, but stipulate clear release obligations : According to Payment Terms Article 14 ( " Reserve Funds '' ), Square can deposit a certain percentage of funds ( such as 10 % to 30 % ) into a reserve fund for a maximum of 90 to 180 days to address possible refund requests, but must release the remaining funds when the account is closed, unless there are specific exceptions ( such as written proof of fraudulent behavior ). On XX/XX/XXXX, Square committed to completing the release of funds, which constitutes a binding commitment under the contract law. Their failure to comply with this regulation constitutes a breach of contract, as they did not provide the corresponding evidence ( such as the " suspected illegal use '' mentioned in Article 3 ).

Article 12 of the General Terms ( " Amendments and Termination '' ) and Article 13 ( " Effectiveness after Termination '' ) stipulate that when terminating the service, Square must cease providing the service, but this does not relieve its obligation to refund the user 's funds. This indefinite retention only applies to " suspected unauthorized, illegal or criminal use '', but Square, apart from automatically refusing, did not provide any proof, documents or appeal opportunities. This violates the implicit commitment of honesty and fair trading contained in its agreement. Additionally, Square 's disclosure documents for fund transfers ( in compliance with the requirements of the Financial Services Regulatory Authority ) clearly state : " According to this agreement, if the funds you transfer as a customer are not transferred by Block Company within [ 3-10 ] days ... or if no equivalent transfer instructions are provided ... unless otherwise instructed, you have the right to request a refund. '' The time exceeding three years is far beyond any reasonable " other regulations '' period, entitling me to obtain a refund immediately.

Violation of California law : Square 's actions violated California 's Money Transfer Law ( Sections 2000-2009 of the Financial Code ), as they obtained a money transfer license in accordance with this law. The main violations include : FIN 2003 ( q ) and ( r ) - failure to pay the fund transfer fee

Company response to consumer: Closed with explanation