Holding credit cards funds that are not disputed?

[twisteddish]

We operate a mobile Food Truck that started in June of 2021.  We've not had any incidents until today.  We booked a large client party for 12/22 whereas the client paid for all of their employee's meals in the amount of $3,450 to which they paid via credit card in one lump sum/invoice.  Without giving a reason, Square deactived one of our mobile locations and is holding our funds for 90 days.  We provided all of our business documents and have used the same bank account and information since we have been working with Square.  Our client feels very badly and just need to know how to make sure we get our hard earned money.  Square advised we cannot refund our client so that they can cut us a check vs the credit card.  I've spent over a $1,000 in equipment to use Square Register, Square online website, etc. and to hold our money without a reason nor a dispute from our client does not seem fair or ethical.  I cannot get anyone at Square to help us understand what is happening and how to correct it ASAP...we are a small seasonal business and the $$ they are holding is sink or swim for us.

[MJD]

Hi there @twisteddish!

I would first like to mention how sorry I feel for you having this experience oh so close to Christmas and as you call it more commonly in the US, the holiday season : (

Square do these checks whenever you get sent a sum of money different to your usual to ensure it's not a fraudulent charge (this should only ever be the way things go once for each location). While inconvenient, Square should be able to run their checks shortly and you will get your money. I know this is a difficulty for any business at any time of year, and especially now. 

While this may not be the answer you would've wanted to hear, I hope it has helped you to better understand the reason for these circumstances and if it has, please mark it as best answer to reduce the stress for anyone with this experience in the future!