Jack Dorsey, CEO for Twitter and Square, a payments business, is being accused of holding back substantial sums of money from customers who use Square, the NEW YORK TIMES reports.
“Thousands of small enterprises that use Square to process their credit card transactions — including plumbers, legal consultants and construction firms — have complained that the company recently began holding back 20 to 30 percent of the money they collected from customers.”
The Square concept is attractive- in large part, owing to its ease of use- a business can attach the App to a smartphone and run a credit charge within seconds. But now, Square is holding back some of the customer’s profits to safeguard against future chargebacks. The company is mainly concerned about transactions made for payment for future services.
Angry customers also complain that it is next to impossible to get in contact with Square as their business’s flounder over lack of capital. The Times reported.
“Nikol de Riso, the owner of EGA Solutions in Palmetto, Fla., said she could not get a response from Square for two weeks about the money it had held from her business, which provides various legal and practical services for small businesses.”
We think that Dorsey is ripping-off these customers. It is not the card holder’s fault that some people may ask for a refund later- that is the cost of business and not the business owner’s vault. Dorsey, who already is treading on thin ice in his Twitter business, needs to stop withholding these funds and pay more attention to his customers. He also needs to make his companies more accessible to customers.