Complaint Review: Square

Square is holding 20k of my money

On June 28, 2012 I received an email from this company requesting detailed info regarding a credit card transaction that I had done with a customer.  
(Hello Eric,
Thanks for using Square.
The safety of your Square account is very important to us. To ensure the safety and security of both you and your customers, we need to learn more about one or more of your most recent transactions. We have temporarily deferred deposits to your bank account until we confirm some information about your account. Please keep in mind that, during this period, you may still accept payments using Square.
We realize the difficulty this may cause and we want to resume deposits to your bank account as soon as possible. With your co-operation, we hope to resolve this situation in 1-2 business days.
Please log in to the Square Dashboard on a computer at https://squareup.com/login. Then, click the "Verify account" button in the banner at the top of the page in order to confirm some details about your account.
Once the form has been completed, you will receive an email confirmation and should expect to hear back from us within 1-2 business days.
For more information about this form and the verification process, please visit our Help Center
Thanks in advance for your cooperation.
Sincerely,
Sunny)
 
 They wanted copy of credit card authorization signature, invoice, my tax returns, website and the nature of my business. provided that to them and notice they said i could continue using square.  I then got this email.

(Hello Eric,
Our Account Services team has concluded a review of your account and has determined it to be high risk. For security purposes, we have elected to deactivate your Square account. From the date of this letter forward, you will not be able to process transactions using Square.

To learn more about Squares Merchant User Agreement and terminations, please visit: https://squareup.com/legal/ua Any funds currently in your account will be held for 180 days before being released to your linked bank account.

If you do not want to wait 180 days to receive these funds, you may consider refunding the payments back to the original cards and seek an alternate form of payment. Please note that we refund all the fees too.

If you are unsure how to refund a payment, please see: How to refund a payment. The payments and fees will be credited back the original payment card within 3 business days.For security reasons, we cannot divulge the reason for your account termination. We apologize for the inconvenience, but our decision is final.Thank you for understanding.

Square Account Services

On July 19, 2012 i woke up to an email that they had withdrawn $4,700.00 from my account with no explanation.Finally On July 23, 2012 I got this email (Hello Eric,

We have received notification of an inquiry regarding a transaction associated with your account. If you would like to challenge the dispute, please provide a detailed description of the goods or services that were sold. Also, if the account information was manually entered (card not present), please provide signed cardholder authorization and proof of delivery. You may attach the requested materials as PDFs to your reply to this email. 

Amount: $4,900.00
Type: Card Payment
Date: Jun 15, 2012 at 8:58am CDT
Payment card: Visa 3940 (swiped)
Statement description: SQ *ERIC SMITH

There will be an immediate hold or debit (via your bank account) on this transaction until the dispute is resolved. 


Micah
Square Chargeback Services 
help.squareup.com

My client didn't dispute anything and  the transaction was over a month ago.
the created problems with my bank accounts. stay away from them.