How Long Does Square Hold Your Funds?

Square provides payment processing services. Businesses often wonder how quickly their funds become available. Several factors influence the deposit timeline, and understanding these helps manage cash flow.

Understanding Standard Deposit Timelines

Square’s standard deposit schedule typically ensures funds reach a linked bank account within one to two business days. Payments processed before Square’s daily cut-off time, which is 5 PM Pacific Time or 8 PM Eastern Time, are usually transferred to your bank account the next business day. Transactions completed after this specific cut-off time will generally be deposited within two business days.

For sales made on a Friday before the cut-off time, funds are typically sent to arrive by Monday morning. If a transaction occurs after the cut-off on Friday, the deposit would be expected by Tuesday. A “business day” for Square’s standard processing means Monday through Friday, excluding any bank holidays. Businesses also have the flexibility to customize their “Close of Business” time within Square. This feature allows merchants to group all transactions from a single day into one deposit, even if some sales occur after the default cut-off.

Factors Influencing Deposit Speed

Several factors can cause a delay in Square deposits or result in funds being held. New Square accounts may experience initial limits on their daily transfer amounts, such as $2,000 for instant transfers, which typically increase as the business builds a processing history. Large or unusually high-value transactions, especially those significantly exceeding a business’s typical sales pattern, can trigger a review. For instance, transactions over $500 might be flagged if a business rarely processes sales of that size.

Certain industries are identified as high-risk by payment processors, which can lead to increased scrutiny or holds on funds. Activities that appear suspicious, such as a sudden, unexpected surge in transaction volume, can also prompt Square’s fraud prevention systems to initiate a hold. This review process helps protect against potential fraud or chargebacks and may take up to 48 hours. Square maintains a reserve policy, a standard industry practice, allowing it to hold a portion of funds to cover potential losses from chargebacks. This reserve amount can vary and is determined at Square’s discretion based on factors like payment history and perceived risk.

Expedited Fund Access Options

Square offers several methods for businesses to access their funds more quickly than the standard deposit schedule. The Instant Deposit feature allows funds to be transferred to a linked debit card within minutes, operating 24 hours a day, seven days a week, including weekends and holidays. This option provides rapid access to earnings for immediate spending needs.

Instant Deposits typically incur a fee ranging from 1.5% to 1.75% of the transferred amount. To use this feature, a minimum balance of $25 is usually required after Square’s processing and transfer fees. While individual instant transfers often have a maximum limit, such as $10,000, businesses can typically initiate multiple transfers if their daily balance exceeds this amount. Another accelerated option is Same-Day Transfer, which also carries a fee and sends funds to a linked bank account at a specific close-of-day time. For immediate access without transfer fees, businesses can utilize the Square Card, linked to a Square Checking account. Funds from sales are made available instantly in the Square Checking account and can be spent immediately using the associated debit card.

Monitoring Your Deposits

Businesses can actively track the status of their deposits through the Square Dashboard or the Square app. These platforms provide a detailed deposit history, allowing users to view the status of individual transactions, which may be labeled as “pending,” “sent,” or “completed.” Regularly checking these statuses helps confirm that funds are moving as expected.

If a deposit appears delayed or seems to be missing, several steps can be taken to investigate the issue. First, verify that the correct bank account is linked to your Square account and that the details are accurate. Cross-referencing Square’s deposit records with your bank statements can help identify any discrepancies. It is also important to consider the impact of daily cut-off times and any bank holidays that may have affected the transfer schedule. If the issue persists after these checks, contacting Square Support is advisable, providing them with your account information for more efficient assistance.