Block to provide data to FTC

Block, the parent company of Square and Afterpay, is complying with an FTC investigation into its business practices. This probe focuses on how the company handles consumer complaints and its dispute resolution processes. For small business owners and retailers using Square for payments or offering Afterpay to customers, this is a signal that federal regulators are tightening their grip on the fintech sector. The FTC is specifically looking at whether Square’s automated systems and customer service protocols are failing both merchants and shoppers. What does this mean for your business? If you rely heavily on Square for your point-of-sale or Afterpay for Buy Now, Pay Later (BNPL) transactions, you need to stay alert. Increased regulatory scrutiny often leads to changes in terms of service, stricter underwriting, or revamped dispute processes. If the FTC finds that Block’s handling of chargebacks or merchant disputes is insufficient, we could see a forced shift in how these platforms operate. Now is a good time to review your own internal records of customer disputes. Ensure your documentation is airtight so you aren't caught in the middle of platform-wide policy shifts. While this doesn't require an immediate switch to a new provider, it serves as a reminder to have a backup payment processing plan in place.

Source: Payments Dive

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