When it comes to the world of payment solutions for businesses, especially mobile payments, Square does not need any introduction. Based in San Francisco, Square is one of the leading platforms globally, with very few competitors coming close to its success.
What started as a simple solution to provide businesses and merchants with the ability to accept payments through smartphones is now a multi-billion-dollar company with millions of worldwide users.
There are many advantages that users get from using Square. The solutions provided by the platform are one of a kind and allow businesses, whether small or large, various payment solutions.
However, there are also certain risks associated with using Square. Some of these risks exist specifically for Square, while others apply to all platforms within the market.
Five risks of using Square
While there are many risks of using Square, given below are five of the top risks users must face when they use Square for their businesses or payments.
1) Account issues
Square has an anti-fraud policy through which it can limit users from using their accounts if the platform suspects unrecognized behavior. While this is a security feature that can keep users safe, it also can expose them to certain risks.
First of all, Square can freeze users’ accounts without any explanation or warning. The platform has control over all user accounts. For users that rely solely on Square for their payments, frozen accounts can be an issue.
Similarly, the platform may also close accounts in the same manner, thus, exposing users to further risks. Sometimes, Square may contact the merchant if there’s any suspicious activity on their accounts. However, some users have complained that the platform froze or closed their accounts without any prior warning.
2) Support problems
Users on the platform may also face problems with customer support. Adding to the above point, Square does not even offer customer support to merchants whose accounts have frozen or closed.
Similarly, their customer support team doesn’t give prompt replies and usually comes up with generic solutions. Many users have also complained they didn’t receive a satisfactory answer from the platform for their issues.
While customer support wouldn’t be considered an issue for most other platforms, Square is different. It is mainly because its users consist of businesses and merchants who need real-time support. If the users don’t get a response on time, it can create problems for them.
3) Loss of business
When users’ accounts get frozen or closed, and they can’t get customer support, they may not have other alternative solutions to fall back on. These users can risk losing potential revenues or profits since they can’t receive payments from customers.
Many merchants base their payments only on Square solutions connected to their accounts. If they can’t use their account, these solutions become useless as well.
However, users face the risk of losing business from account issues or slow customer support. They may also face problems with customers who don’t trust Square’s products. For example, some users reported their customers were hesitant to use their credit cards through Square Reader because they didn’t trust the system.
4) Hacking
Due to the nature of Square’s solutions, users also face the threat of hacking when using Square. All of the users’ payments go through their online Square accounts, which are susceptible to online breach attempts. While Square has appropriate and effective systems to block these attempts, there is still a chance that users may suffer from it.
The nature of Square accounts also makes them a favorite for hackers. It is mainly because Square accounts have users’ money, which hackers can withdraw or transfer to their accounts. Users also have to face the risk of slow response times from Square’s customer support if their accounts get hacked.
5) Card risks
While Square’s solutions are unique and provide users with distinct features, they still rely on payment cards. Therefore, Square users have to face the risks that are associated with accepting card payments as well.
These may include different types of risks, such as the risk of fraud, which can be costly for merchants. Similarly, users may face the risk of data breaches, putting their customers’ data at risk.
Furthermore, these issues or risks can impact a business’s reputation and expose it to other risks discussed above, such as loss of business. While Square deals with some of these problems on its users’ behalf, the risks still exist.
Conclusion
Square is one of the top names in the world of mobile payment solutions. There are many unique features that the platform offers its users, which can give them many advantages.
However, there are certain risks associated with using the platform, as well. These risks include account issues, support problems, loss of business, hacking, and payment card risks.