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 active 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 Check
In some cases, your bank may cut you a check for the transfer amount and mail it to your address on file.
Next Steps: Link an active 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.
Multiple External Bank Accounts with Square
To avoid accidentally sending transfers to a closed bank account, you can link multiple external bank accounts to your Square account, so you can easily switch between bank accounts when sending your transfers. To link multiple external bank accounts to your Square account:
From Account & Settings in your online Square Dashboard, click Bank Accounts.
Under All locations, click the linked bank account next to the location of the bank account you want to update.
From the drop-down menu, select the verified bank account you want to add to that location. If you do not see the bank account you want to link, select Add external bank account and complete the bank verification process.
Click Update linked account > Done.
Note: You can only have one linked bank account per Square location at this time.