Transfers to a Closed Bank Account
Transfers are sent automatically to your linked bank account based on your transfer schedule. Square assumes your linked bank account is open and active until your bank notifies us of a closure. If your linked bank account has closed, Square receives notification after a transfer has been sent.
When a transfer is sent to a closed bank account, one of three things can happen:
Transfers Bounce Back to Square
If your account has closed and isn’t accepting transfers, the funds should bounce back to Square. It can take up to 7 business days for the funds to return to us.
Next Steps:Link an open bank account from your online Square Dashboard. The new bank account will be verified within 4 business days.
If the transfer bounces back to us, we’ll automatically send it to your newly linked account. If your new bank account isn’t yet linked and verified, the funds will remain in your Square balance until verification is complete. You’ll receive email updates each step of the way.
Bank Accepts the Transfer and Issues a Cheque
In some cases, your bank may cut you a cheque for the transfer amount and mail it to your address on file.
Next Steps: Link an open bank account. Then, reach out to your bank directly to see if a check has been issued or can be issued.
Bank Keeps the Account Open
The bank may keep your account open for some time, specifically for situations like this.
Rest assured, your funds aren’t lost.