B2B Payments

Square Warns Glitch May Prevent Transfers To Biz Bank Accounts

Payments technology company Square has acknowledged a technical glitch that prevented one small business in Toronto, Canada, from receiving funds in its bank account — and warns that it might not necessarily be a “one-off" case.

Reports in CBC News on Monday (Sept. 30) said Little Havana, a mobile coffee stand based in Toronto, claims more than $10,500 in payments processed via Square never made it into the company's TD Canada Trust bank account. The company noted that it has used Square for years without any issue.

Late last month Little Havana Co-Owner Monica Mustelier said she noticed thousands of dollars worth of sales had not made it into the company bank account.

“It's been really frustrating because I've been spending at least two to three hours every day going between Square and TD when I could actually be drumming up business for us,” she told the news outlet, adding that the company has now moved to being cash-only to avoid any more possible losses. That could be damaging to sales revenue, however, with Mustelier estimating that some 80 percent of current customers pay via card.

A spokesperson for Square warned that this may not be an isolated case.

“I can't say this is widespread. I can't say it's a one-off,” said Square Canada Communications Manager Valerie Jackson.

The company also declined to say how many business clients may have been impacted by the glitch. However, following CBC Canada's communication with Square, the payments company said it had located Little Havana's funds, though declined to provide more details. As of the story's publishing, the company still had not seen those funds in its bank account.

Square said an issue with its unnamed acquiring processor was to blame for the glitch.

In another interview with the news outlet, Ryerson University Transmedia Zone Director and technology expert Professor Ramona Pringle said that the case highlights a bigger issue “about tech in general” and how the market can ensure “transparency and accountability.”

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