Percentage Processing FAQs
Find answers to common questions about percentage processing with Square.
Disclaimer: At this time, percentage processing is only offered on an auto-select basis.
You received a payment dispute which resulted in a negative balance on your Square account. Square currently offers percentage processing to a select group of sellers to test the repayment offering.
With percentage processing active on your Square account, we capture 20% of each transaction you process and apply it towards your balance owed. Once the balance is fully resolved, we’ll notify you, and your deposits will return to processing in full.
Percentage Processing was created with small businesses in mind. Normally, you’d receive a debit to your linked bank account to cover your balance owed, but we understand unexpected debits can interrupt your business. We’re now offering percentage processing.
To see details of the dispute including the claim reason, log in to your Square Dashboard and click Reports > Disputes.
When you signed up for Square, as well as each time you processed a payment, you agreed to our Payment Terms of Service (sections 18–21) which outlines your liability to all chargeback-related balances.
You can pay the full balance through your Disputes Dashboard. The payment plan will be disabled, and a debit for your remaining balance owed will be applied to your Square balance and linked bank account. To do so, from your online Square Dashboard:
- Click Reports > Disputes.
- Next to ‘Balance repayment’ click the three dots icon ‘…’ > Pay full balance.
- Next to ‘Confirm Enrolment’ click Pay full balance > Pay.
To stay active in this payment plan, you must process within 60 days of enrolment. If at any time your account is inactive for a 60-day period, or you receive additional chargebacks while percentage processing is active, the payment plan will be disabled and a debit for your remaining balance owed will be applied to your Square balance and linked bank account.
If you receive additional disputes while percentage processing is active, percentage processing may be removed from your Square account.
Your account was deactivated due to either 60 days of inactivity (no payments were processed) and/or additional disputes received on your account.
Your balance owed may not match the total disputed amount for a couple of different reasons:
- If you have a positive balance in your Square account at the time of a new dispute, the balance will be applied towards your new balance owed. Percentage processing will be activated for the remaining amount your Square balance didn’t cover
- If you win a dispute while active in percentage processing, a credit will be applied to your Square account and offset any balance you may have.
Upon percentage processing being removed from your account, a debit for the remaining balance owed will be applied to your Square balance and linked bank account.