Yes, you generally must provide your SSN to Square to activate an account for processing payments. Square requires this for mandatory, legally mandated, identity verification (KYC) and tax reporting purposes in the United States, as supported by this article from Square Community and this article from Square Community.
An SSN is required to sign up with Square per card processing regulations but you can change it to an EIN once the account has been created in the Account & Settings section under Tax Forms. If you don't have one, you may have to have someone else in the business make the account for you.
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)
Yes, we stress-test our systems and keep ahead of malicious actors. We're also committed to the highest standards of information security governance.
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.
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.
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.
Sharing your SIN when it isn't legally required can put your personal information at risk and lead to identity fraud. Keep yourself safe, by protecting your SIN.
Yes. Square sends a Form 1099-K to sellers who meet IRS thresholds. For the 2024 tax year, if you process more than $5,000 in payments and have at least one transaction, you'll receive a 1099-K by January 31, 2025. For 2025 tax year filings, the threshold drops to $2,500.
Security is engineered into Square hardware and software from the ground up. Your payments are encrypted to protect against hackers. It's all designed and maintained by Square so you don't have to go through anybody else. Payments are secure out of the box with no lengthy setup.
When you verify your identity or for a community, you may need to provide personal information, such as your Social Security number (SSN). Providing your SSN helps to prevent impersonation and fraud.
Here are some of the most secure payment methods available online:
Yes, charging a 3% credit card fee (surcharge) is generally legal in most U.S. states and follows card network rules (like Visa's 3% cap), but it depends heavily on your location and requires strict adherence to rules, such as not surcharging debit cards, capping it at your actual processing cost (not to exceed 3% for Visa/4% for Mastercard), and providing clear customer notification. Some states (like Connecticut, Massachusetts, Texas) may have their own bans or restrictions, so it's crucial to check your specific state laws.
The transaction fees for online payments with Square are 2.9% + $0.30 per transaction. This rate is slightly higher than in-person transactions due to the increased risk and complexity involved in online payment processing.
Here are 10 places that have no business asking for a SSN:
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.
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.