PayPal Square terminated my account — Dispute Resolution

Started by LitigatorAnna_22 · Jun 25, 2023 · 1,451 views · 3 replies

For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.

LitigatorAnna_22 OP Oct 17, 2023

Has anyone dealt with something like this? I'm not sure what my options are.

Square terminated my account. I've been dealing with this for about 10 weeks now and the situation isn't improving.

The amount being held/disputed is approximately $40,929. I have tried contacting their legal department 6 times with no resolution.

Has anyone been through something similar? What worked for you?

nothing_but_the_truth_15 Business Owner Jan 1

Important clarification on arbitration: if your contract has a mandatory arbitration clause, you generally CAN'T sue in court. But here's the thing — filing for arbitration is often MORE intimidating to companies because they have to pay the arbitration fees (often $3,000-5,000 for the company's share). Use this to your advantage.

deskjockey_10 Feb 6

Important data point: I tracked how long it took from my initial complaint to resolution. Through customer service: 4 months of runaround. Through a formal demand letter: 3 weeks. Through a CFPB complaint: 10 days. Don't waste time with customer service — go straight to formal channels.

xena_m_35 Mar 22, 2026

Just got off the phone with my bank's fraud department. If you haven't already, file a dispute directly with your bank under Reg E (electronic transfers) or Reg Z (credit cards). The bank has to investigate within 10 business days.

PayPal Square terminated my account — Dispute Resolution

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