When Square closes a merchant account, the platform typically places a hold on the remaining account balance for a review period that can extend several months. The stated purpose of the hold is to cover potential chargebacks that may arrive after the account is closed, since card network rules allow customers to dispute transactions for a defined window after the purchase date. For merchants with large balances at the time of closure, this hold can represent a significant portion of their working capital. The hold period and conditions vary, and Square's communications about the timeline are often limited enough that merchants are left uncertain about when or whether the full balance will be released.
One of the structural advantages of processing payments through a blockchain-based system like 27 Blockchain is that transaction settlement happens on-chain, and the merchant maintains direct control over received funds through their own crypto wallet. There is no intermediary holding the balance in a pooled account with the authority to freeze it unilaterally. Dropped by Square payment processing situations often push merchants to seek this kind of direct settlement structure specifically because the experience of having funds frozen by a payment facilitator changes how a business owner evaluates counterparty risk in their payment infrastructure.
