Score Breakdown by Category
Square scores above average in most categories, with particular strength in fund control and transparency.
Why this score: Square earns the highest score in this category among major processors due to three key protections: (1) 180-day maximum fund hold in Section 4.2—the only major processor with a defined cap; (2) 30% reserve maximum under Section 4.3, compared to unlimited reserves at Stripe and PayPal; (3) 30-day appeal window for terminations per Section 8.1.
Industry comparison: Stripe: 35/100 (no hold limits, 100% reserves) | PayPal: 28/100 (180-day holds + rolling reserves) | Shopify: 30/100 (indefinite holds) | Category avg: 38/100
Why this score: Square requires mandatory arbitration with a class action waiver (Section 15), which is standard across processors. However, Square provides a formal 30-day appeal process for account decisions (Section 8.1)—unique among major processors. The $10 chargeback fee (vs. $15-20 elsewhere) and first-chargeback waiver also improve this score.
Industry comparison: Stripe: 40/100 (arbitration, no appeals) | PayPal: 35/100 (arbitration, limited appeals) | Shopify: 35/100 (arbitration, no appeals) | Category avg: 41/100
Why this score: Square's indemnification clause in Section 12 is narrower than competitors, covering only "your use of the Services" and "your breach." Unlike Stripe and PayPal, Square does not require you to indemnify them for their own negligence or system failures. Liability caps in Section 11 are also more favorable: limited to fees paid in 12 months, not just 3 months.
Industry comparison: Stripe: 45/100 (broad indemnity, 3-month cap) | PayPal: 40/100 (broadest indemnity) | Shopify: 45/100 (double indemnity) | Category avg: 49/100
Why this score: Square provides the most readable ToS among major processors. Key strengths: (1) 30-day advance notice for material changes (Section 2.2); (2) plain-language summaries for major sections; (3) specific criteria for reserve requirements in Section 4.3 rather than blanket discretion. The restricted business list is published and updated with clear changelog.
Industry comparison: Stripe: 55/100 (change-at-will for pricing) | PayPal: 45/100 (15-day notice, buried changes) | Shopify: 50/100 (7-day notice) | Category avg: 56/100
Why this score: Square provides a data export tool in the dashboard (Section 14.2) for transaction history, customer data, and analytics. Privacy policy is CCPA/GDPR compliant with clear opt-out mechanisms. Negative: Square shares data across Block ecosystem (Cash App, Afterpay, TIDAL) per Section 5 of the Privacy Policy, which expands data exposure.
Industry comparison: Stripe: 60/100 (export via API only) | PayPal: 50/100 (limited export, broad sharing) | Shopify: 42/100 (data tied to platform) | Category avg: 56/100
Why this score: Square allows account closure at any time with no early termination fees (Section 8.4). Funds are released within the 180-day hold maximum. Post-termination obligations are limited to outstanding chargebacks and disputes filed before closure. However, processing history cannot be transferred to other processors.
Industry comparison: Stripe: 50/100 (indefinite post-termination holds) | PayPal: 35/100 (180-day holds post-closure) | Shopify: 25/100 (store + payment tied) | Category avg: 44/100
Analysis