Free Guide to Closing Your Square Account

Understanding Square and Why You Might Close Your Account

Square is a payment processing platform that helps businesses accept credit cards, debit cards, and digital payments. The company was founded in 2009 and serves millions of small businesses, retailers, and service providers worldwide. Square offers various products including Square Point of Sale (POS) systems, Square Online for e-commerce, Square Cash for peer-to-peer payments, and Square for Restaurants.

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People close their Square accounts for many reasons. Some businesses transition to different payment processors that better match their specific needs. Others may be consolidating payment systems when merging businesses or changing their operational model. Some users simply no longer need the service because they've shifted to a different sales channel or closed their business entirely. Understanding your reason for closing helps you prepare for the transition and ensures you handle any outstanding transactions properly.

Before closing, you should consider what happens to your data, transaction history, and any pending payments. Square maintains records of your transactions, and you may need access to this information for accounting, tax purposes, or customer service. Taking time to gather what you need before closing prevents complications later.

The closure process itself is straightforward but requires attention to detail. You'll need to handle outstanding balances, ensure all transactions are settled, and confirm there are no recurring payments still processing through your account. This guide walks through each step of what to expect when closing a Square account.

Practical takeaway: Before you start the closure process, write down your reasons for closing and make a checklist of items you need to handle—such as exporting transaction records, canceling recurring payments, and settling any outstanding balances.

Preparing Your Account Before Closure

Preparation is the most important phase of closing your Square account. Taking time to get your account in order prevents issues that could arise weeks or months after closure. The preparation phase typically takes anywhere from a few days to a couple of weeks, depending on your account activity level and how many transactions you need to review.

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First, review your account balance and recent transactions. Log into your Square Dashboard and check whether you have any pending deposits or refunds. Square typically deposits funds to your linked bank account every one to two business days, but if you're closing your account, you want to ensure all legitimate transactions have been processed and deposited before you proceed. Check your transaction history for the past 30 to 90 days to identify any unusual activity or pending items.

Next, identify and cancel any recurring payments or subscriptions. If you're using Square Invoices for recurring billing, Square Payroll, or Square Subscriptions, these need to be terminated before account closure. Go through your customer list and your recurring payment settings to document what needs canceling. This prevents customers from being charged after your account closes and prevents confusion about why payments failed.

Export and store your transaction records. Square stores your transaction history in the Dashboard, but you should download and save this information yourself for your records. This is particularly important for tax purposes—the IRS may need records of your transactions, and you want documentation that exists independently of your Square account. You can export transaction reports from the Square Dashboard in CSV or PDF format. Go to the Reports section, select the date range you need, and download the file to your computer.

Back up any customer information you might need later. If you maintain customer contact information, purchase history, or other data in Square, export this information before closure. You may need to contact customers about outstanding issues, warranty claims, or other business matters. Square allows you to export customer data through your account settings.

Practical takeaway: Spend one afternoon downloading all your transaction records, customer lists, and account reports. Store these files in at least two locations—such as your computer and a cloud storage service like Google Drive or Dropbox—so you have permanent backups.

Settling Outstanding Balances and Transactions

Before closing your account, all outstanding balances must be settled. This includes any holds Square may have placed on deposits, refunds that are pending, or fees that haven't been deducted yet. Understanding how this works prevents unexpected issues or surprises after you've requested closure.

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Square may hold deposits under certain circumstances. If you've had chargebacks, refund disputes, or other issues, Square might hold a percentage of your daily deposits as a reserve. This is a security measure to protect against fraud and disputes. Before closing, check whether you have any reserve balance held. If you do, contact Square's support team to understand when this balance will be released. Depending on your situation, the hold may be released when your account closes, or it may take 30 to 90 days after closure.

Process any outstanding refunds before closure. If customers have returned items or you need to issue refunds, process these through your Square account before requesting closure. Refunds processed after account closure can be problematic for customers and for your record-keeping. Review your recent sales and ensure all legitimate refunds have been issued.

Check for any fees or chargebacks. Review your account for any pending chargeback disputes or unusual fees. Square charges transaction fees (typically 2.6% plus $0.10 for in-person transactions, and 2.9% plus $0.30 for online transactions, though these rates vary), and these fees are typically deducted from your deposits automatically. Make sure you understand what fees you'll owe and that your linked bank account has sufficient funds to cover final fees if they're deducted after closure is requested.

Ensure your linked bank account is active and correct. Square deposits funds to your linked bank account, and this account needs to remain active through your final deposit. If you're closing your account because you're changing banks, update your bank information in Square before requesting closure. This ensures your final deposits go to your current account. After closure, you won't be able to update banking information through Square.

Practical takeaway: Log into your Square Dashboard and check your deposit schedule, pending refunds, and account balance. Call Square support (1-855-700-6000) if you see any holds, chargebacks, or unusual fees, and ask them to explain what's pending before you request closure.

Steps to Officially Close Your Square Account

The actual closure process is handled through your Square account settings and is designed to be straightforward. Square doesn't require you to call or visit an office—you can request closure entirely through your online Dashboard. The process typically takes 24 to 48 hours to complete once you've submitted your closure request.

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Start by logging into your Square Dashboard using your email address and password. If you use multiple Square accounts (for different businesses or locations), make sure you're logged into the correct account. Once logged in, navigate to your Account Settings. This is typically found in the menu on the left side of the Dashboard, though the exact location may vary depending on which Square product you're using (Point of Sale, Online, Invoices, etc.).

In Account Settings, look for options related to account management or account closure. Square may label this as "Close Account," "Deactivate Account," or "Account Status." Click on this option. Square will likely ask you to confirm your identity by entering your password again or verifying other account details. This is a security measure to prevent unauthorized account closures.

You'll be presented with information about what happens when you close your account. Read this carefully. Square will inform you that you won't be able to process new transactions, that your data will be retained for a certain period, and that any pending deposits will still be processed. You may be asked to provide a reason for closing your account. This feedback helps Square understand why customers are leaving, but it's optional.

Confirm the closure request. Square will ask you to confirm that you want to proceed with closing your account. This is your last chance to cancel if you've changed your mind. Once you confirm, your account will be marked for closure. Within 24 to 48 hours, your account will be fully closed, and you won't be able to log in or process new transactions.

After closure is complete, you'll receive a confirmation email. Save this email for your records. If you ever need to reference your account in the future—for example, if a customer disputes a charge or you need transaction records for tax purposes—this confirmation and your downloaded records will be valuable documentation.

Practical takeaway: Before clicking "confirm" on closure, take a screenshot of your current account balance and any pending deposits shown in your Dashboard. This creates a record of your final account status that matches Square's records.

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