Consumer complaint received 2025-06-05 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem — 
Company: Block, Inc.
State: NY

Complaint narrative:
This is my second CFPB complaint regarding this issue. The first ( XXXX ) resulted in a generic response from Square directing me to a support phone number ( XXXX ), which appeared to offer a path to resolution. In reality, this number connects to an automated system that immediately routes users to an online chat forum. I spent over an hour in that chat, being transferred between agents in a closed loop of unhelpful responses. It was a clear deflection tactic that offered no access to a true escalation or dispute resolution process. 

My Square account information is : Name : XXXX XXXX Email : XXXX Business name : XXXX XXXX XXXX On XX/XX/year>, my business, XXXX XXXX XXXX, received a {$4500.00} payment via Square for a XXXX XXXX program. The client XXXX XXXX, digitally signed a comprehensive service agreement through Squares own Square Contracts tool, which clearly outlined the scope of services, payment terms, and a strict no-refund policy. The payment, invoice, and contract were all processed through Squares platform. 

On XX/XX/XXXX, XXXX months laterthe cardholder filed a chargeback through XXXX, claiming they had no knowledge of the charge. I immediately submitted extensive documentation to Square in response, including : - The digitally signed agreement ( timestamped and IP-verified )- An invoice showing the {$4500.00} charge via a XXXX XXXX XXXX XXXX XXXX Multiple written confirmations from the client acknowledging the charge - Screenshots of coaching sessions and call logs - A formal termination letter due to the clients abusive conduct Although XXXX Squareissued the ruling, Square refused to challenge it. They informed me that the decision was final and that no appeal could be filed, despite the overwhelming evidence I provided. This is particularly troubling given that Squares Square Contracts product is marketed as a merchant protection tool for disputes. In this case, they refused to even attempt an appeal. 

Based on my research and conversations with both companies, my hypothesis is that XXXX automatically ruled in favor of the cardholder due to the nature of the charge : - The card was brand new- This {$4500.00} transaction was its very first charge, and it maxed out the credit line When the cardholder falsely claimed they didnt recognize the charge, XXXX likely assumed the card had been stolen, and ruled in their favorwithout actually reviewing any of the supporting evidence submitted I attempted to escalate through Square support. Their customer service phone line routes to a chat system, where I spent over an hour being transferred between agents. Eventually, I received a callback and spoke with a supervisor who acknowledged the case and assured me I would receive an email within 24 hours with next steps. That email never came. Prior to that call, I had already asked Square to provide a written explanation of their dispute handling and a record of their communication with XXXX. Square declined to provide either.

As a small business owner, I relied on Squares platform to process this payment, enforce my signed contract, and protect me in the event of a dispute. Square failed on every front. Their refusal to file an appealdespite having th
e authority to do sohas left me financially harmed and without recourse.

I am requesting that the CFPB investigate Squares dispute p
rocedures and its misleading promotion of Square Contracts as a protective solution. In reality, Square provided no protection, no transparency, and no accountability.

Company response to consumer: Closed with explanation