Payments News

Hit by Coronavirus—and a 30% Holdback by the Payment Processor

Jun 15, 2020

More people are demanding refunds for things bought before the pandemic. PayPal, Square and others are trying to protect themselves, but it’s coming at the expense of businesses that use them.
Payment processors tell customers they will take care of the nagging details. But lately they are emerging as yet another headache for businesses hit hard by the new coronavirus.

Processors like PayPal Holdings Inc., Stripe Inc., Square Inc. and Worldpay are making some businesses wait additional days or weeks to access funds deposited in their accounts, citing the need to protect themselves against possible losses when people who have bought airline tickets, vacation packages and some other goods and services seek refunds.

By Peter Rudegeair and AnnaMaria Andriotis

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