Yes, it's generally safe and necessary to give your SSN to Square during legitimate account setup because they're legally required to verify your identity for payment processing, but you should always be cautious, ensure you're on their official site (look for the lock symbol), and understand they use it for tax reporting and security, not general identification, so never share it unsolicited.
Square is legally required to collect and verify your personal information to ensure that your account remains safe and secure. The following information is required to activate a Square account: Full legal name. Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)
Aggregators like Stripe, PayPal, and Square are built for low-risk merchants. Their systems automatically freeze or terminate accounts that trip risk thresholds. A proper high-risk merchant account is designed for your profile from day one, giving you consistency, protection, and real human support.
Yes, we stress-test our systems and keep ahead of malicious actors. We're also committed to the highest standards of information security governance. We've achieved the renowned ISO 27001 certification. Square security is evaluated every day by public bounty researchers.
For every account that meets the Form 1099-K requirements, including non-profits, the IRS requires Square to report this information. According to the IRS, gross income is defined as all income from whatever source derived an individual or entity has received throughout the calendar year.
An identity thief could try to use your Social Security number to do things like open accounts, take out a loan, file taxes, or get a job. To check if someone is using your number for work purposes, review your Social Security work history by creating an account at socialsecurity.gov/myaccount.
If you're asked for your Social Security number, ask if you can show another form of identification or use another number instead. Never give out your Social Security number when shopping online. Do not give out your Social Security number over the phone if someone calls you.
An organization's collection and use of SSNs can increase the risk of identity theft and fraud. Each time an individual divulges his or her SSN, the potential for a thief to illegitimately gain access to bank accounts, credit cards, driving records, tax and employment histories and other private information increases.
Here are some of the most secure payment methods available online:
Square vs PayPal: Risk management
Square and PayPal offer similar industry-standard risk management features. Both are Payment Card Industry (PCI) Level 1-compliant payment platforms equipped with machine-learning fraud protection tools and customizable filters.
Yes, you can refuse to provide your Social Security Number (SSN), but the requesting entity (like a bank, employer, or utility) can also refuse you service, as there's generally no federal law forcing you to give it to private companies unless a specific law (like for taxes or benefits) requires it. While you can say no to businesses, you'll likely be denied the service, though you can ask why they need it, how they'll protect it, or if an alternative ID works, as some, like doctors, might not file insurance without it.
Square will not rent or sell your personal information to others but may share your personal information with third parties for the purpose of providing services to you. If we do this, such third parties' use of your personal information is bound by terms at least as restrictive as our privacy policy.
As a regulated financial services company, Square is required to verify the identity of anyone who wishes to use our payment services. To do so, we use a document-based verification system that verifies your identity based on a photo ID document, such as a passport.
To send your Social Security Number (SSN) safely, avoid standard email/text; use secure online portals, encrypted file sharing (like password manager features or dedicated services with expiring links), or password managers for sharing; and always verify the recipient's legitimacy, providing the SSN in person or via phone call if digital methods aren't possible, never over an unencrypted message.
Clues That Someone Has Stolen Your Information
Merchants refuse your checks. Debt collectors call you about debts that aren't yours. You find unfamiliar accounts or charges on your credit report. Medical providers bill you for services you didn't use.
How identity theft happens
Yes, Square (payments platform) is generally considered safe, using industry-standard encryption and PCI compliance, securing data from swipe to processing with end-to-end encryption, and employing robust server security, fraud detection, and regular security audits to protect transactions and user information. They encrypt card data immediately and use secure protocols like SSL, backed by continuous monitoring and certifications like ISO 27001 for high security, though users should still practice good security habits.
Square will submit your 1099-K form directly to the IRS at the end of the tax season if you earned over $600, regardless of how many transactions you processed. If you want to access your 1099-K form, you can log into your Square Dashboard.