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Commercial Entity Agreement FAQs

Review answers to frequently asked questions about the Commercial Entity Agreement.

Why do I have to sign the Commercial Entity Agreement?

The Networks (Visa, MasterCard, and American Express) require all Square merchants who
process more than $100,000 in card sales enter into an agreement directly with Square’s acquiring banks. When you created your Square account, you agreed to Square’s Payment Terms, which include the “Commercial Entity Agreement”. You are receiving the form now because you’ve reached $100,000 in processing. Similarly, American Express may desire to maintain an agreement with you directly in relation to your use of the Square services. If that is the case, we will notify you of such requirement.

If you do not sign this document, unfortunately, Square may suspend or terminate your Square account.

What is a Commercial Entity Agreement?

A Commercial Entity Agreement is a compliance requirement set forth by our Card Network partners. It details credit card network (Visa, MasterCard) rules governing the authorization, conveyance and settlement of transactions using services provided by Square. In addition, it is an acknowledgement the payments processed using Square are associated to a commercial business.

Why is my business considered a Commercial Entity?

Visa, and MasterCard collectively define users who have processed a high volume of payments as commercial entities. If your business has processed $100,000 in credit card payments using Square, your business will be defined as a commercial entity.

Read more about the Commercial Entity Agreement.

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