Deposits to a Closed Bank Account
Deposits are sent automatically to your linked bank account based on your deposit 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 deposit has been sent.
When a deposit is sent to a closed bank account, one of three things can happen:
Deposits Bounce Back to Square
If your account has closed and isn’t accepting deposits, the funds should bounce back to Square. It can take up to 7 working 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 in 4 business days.
If the deposit 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 Deposit and Issues a Cheque
In some cases, your bank may cut you a cheque for the deposit amount and mail it to your address on file.
Next Steps: Link an open bank account. Then, contact your bank directly to see if a cheque 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.