Square makes a small announcement with a huge impact
Mobile payment system, Square announced today that effective immediately, they’ve eliminated deposit limits on manually entered transactions for all businesses in the U.S.
One of our major complaints about Square (and other mobile payment readers) is these hidden restrictions, having eliminated the seven day holding period on funds, and $2,002 caps, Square has instantly removed the primary reason we could not recommend the system to anyone.
In a statement, the company said, “For businesses like yours, larger-ticket, manually entered transactions are simply a necessity. You shouldn’t receive your money on a different schedule than other businesses. No more confusion about when your next deposit will be. Square will be sending all your payments to your bank account in 1-2 business days, regardless of transaction type or deposit size.”
The timing is perfect
Previously, Square was really only most advantageous to entrepreneurs selling small ticket items like quilts or jewelry, or smaller services like mobile mechanics or tailors. But anyone that sells higher cost products or services were kept in a holding pattern where they couldn’t access their earnings for seven to even 30 days, if the amount exceeded $2,002.
This is an important move for Square as Square Register, launched early this year, seeks to replace cash registers and put product sellers and service providers on their systems.
Their timing is perfect, as tablets have gone mainstream, and most people now understand how mobile payment systems work and are less leery.
We are frequently asked what tools we use, and when Square comes up, until this point, we have had to confess that it was useless to us, given the hold periods and deposit limits, but with this single announcement, it has become useful for any type of business.