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Square says it resolved a daylong outage that disrupted merchant payments

Square’s September 2023 outage left some sellers unable to access accounts or process card payments. The company said services were recovering after a fix, but warned that transfers could still be delayed.
From TheFinanceBase Team6 min to read

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This was a historical outage, not a newly reported August 2026 incident. On September 8, 2023, Square said its systems were recovering after an interruption that began around noon Pacific Time the previous day. Some sellers could not access their accounts or process credit-card payments. Square said engineers had deployed a fix, but warned that some transfers could remain slightly delayed.

The company described recovery as ongoing and said it was continuing to monitor its systems. That makes “resolved” a qualified status—not evidence that every Square function and payment movement returned to normal at exactly the same time.

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What happened to Square

The outage began at approximately 12 p.m. PT on Thursday, September 7, 2023. Reports cited by TechCrunch said some Square sellers were unable to sign in to their accounts or accept credit-card payments through Square’s normal point-of-sale services.

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Square acknowledged the disruption, apologized to merchants and said engineers implemented a fix early on Friday, September 8. By that morning, the company said services were coming back online and that it was “actively observing the recovery of all Square systems.” It also cautioned that transfers might experience slight delays.

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No precise minute when every service was restored was established in the available reporting. The most accurate description is that Square reported recovery after a prolonged outage while continuing to monitor the system.

Square outage timeline

Time What was reported
Thursday, September 7, around noon PT The disruption began, affecting access and payment processing for some sellers.
Thursday afternoon and evening Merchants reported difficulty using Square accounts and processing card payments.
Early Friday, September 8 Square said engineers had implemented a fix.
Friday morning Square said systems were recovering, while warning of possible slight transfer delays.

Which Square functions were affected?

The strongest supported reports concern three areas:

  • Access to Square seller accounts.
  • Processing credit-card transactions.
  • Use of affected Square systems and ordinary point-of-sale services.

The available coverage does not establish that every Square product failed. It does not provide a product-by-product failure list for hardware, invoices, payroll, banking, refunds, transfers or other features. It would therefore be inaccurate to say that all Square payments or all Square services failed for every merchant.

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Who was affected?

Square sellers and small businesses that relied on the platform for in-person or virtual payments were the directly affected group. The exact number of merchants, customers, transactions or dollars involved was not disclosed in the reporting.

One merchant told TechCrunch that the business had missed more than $2,000 in sales. That is an individual account of the disruption, not an estimate of total merchant losses or a typical loss per business. Another user said having a cash dispenser on site helped during the outage.

Why a payment outage matters to small businesses

A point-of-sale outage can stop more than a card transaction. It can prevent staff from looking up orders, checking customer information, issuing refunds or confirming whether a payment actually completed. Even after checkout resumes, settlement may lag behind acceptance, creating uncertainty about when funds will arrive.

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The 2023 incident illustrates two separate problems merchants need to distinguish:

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  • Payment acceptance: whether the business can authorize and record a new sale.
  • Settlement and transfers: whether money from completed transactions reaches the merchant’s bank account on the expected schedule.

Square’s warning about possible transfer delays mattered because restored checkout functionality did not necessarily mean that every downstream funds movement was instantly normal.

Was Cash App also down?

Yes. Cash App, another Block-owned service, experienced an outage during the same period. Its status update said users could again add cash and make purchases with their Cash Card, while sending payments and cashing out were still being restored.

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These were concurrent disruptions within Block’s consumer and merchant payments ecosystem. The reporting did not establish that Square and Cash App had the same technical cause. The incidents should not automatically be described as one shared outage, a cyberattack or a data breach.

What caused the Square outage?

The cause was not publicly identified in the available coverage. Square had not disclosed whether the incident resulted from a software problem, infrastructure failure, third-party dependency, security event or another issue. A Square spokesperson also had not immediately responded to a request for comment at the time of publication.

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That means claims about a cyberattack, cloud-provider failure or data breach would go beyond the evidence. The reporting also did not establish an exact outage duration, the number affected, aggregate financial losses, a complete technical scope or any compensation policy for merchants.

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What the current Square status page does—and does not—show

Square’s current U.S. status page shows the service as fully operational. However, its visible history does not preserve a detailed incident record for the September 2023 event. The current banner should be read as a statement about present availability, not as proof of how quickly the 2023 outage was resolved.

For a live problem, merchants should check Square’s U.S. status page and its status history before repeatedly reinstalling applications, replacing hardware or retrying transactions.

What merchants should do during a similar outage

  1. Confirm the incident. Check the official status page and Square’s support channels to distinguish a platform outage from a local internet, device or account problem.
  2. Record what failed. Note the outage start time, affected registers, failed orders, declined receipts, pending authorizations and transfer discrepancies.
  3. Use a backup acceptance method. Depending on the business, that may mean cash, a separate card terminal or a manually recorded order queue. Offline payment capabilities vary by product, configuration and payment type, so do not assume every Square device can safely process every transaction offline.
  4. Avoid blind retries. If a customer’s bank shows a pending authorization but the register does not show a completed sale, repeatedly charging the card can create duplicate authorizations or duplicate sales records.
  5. Reconcile after recovery. Compare Square transactions with orders, refunds, transfers and bank deposits. Look for missing, duplicated, pending or reversed payments.
  6. Contact support with evidence. Provide transaction IDs, timestamps, receipts and settlement records when the account does not reconcile.

Merchants should not promise that a failed-looking payment can never post. A pending authorization may require later verification with the customer and the payment processor.

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Should a business switch away from Square?

One outage alone does not prove that a merchant should abandon Square. The more useful question is whether the cost of dependence on one provider is greater than the cost and complexity of a fallback plan.

Continuity option Benefit Trade-off
Cash fallback Can work without card-processing infrastructure. Less convenient and creates cash-handling and security burdens.
Secondary processor Preserves card acceptance if the primary provider fails. Adds hardware, fees, accounts and reconciliation work.
Manual order capture Lets staff keep operating while systems are unavailable. Creates later data-entry and payment-collection risk.
Online backup checkout May help if only in-person equipment is unavailable. It may not help if the processor or business network is also down.
Multiple processors Reduces dependence on one vendor. Can complicate refunds, inventory, reporting and settlement.

A second brand is not automatically an independent technical fallback. Before buying another terminal or changing providers, a business should check whether the alternative uses a different processor or network path, and compare support, contracts, settlement timing, refund handling, offline acceptance, hardware ownership and reconciliation requirements.

What remains unknown

  • The root cause of the September 2023 outage.
  • The exact time all Square services returned to normal.
  • The number of affected merchants, customers and transactions.
  • The total financial impact.
  • Whether the Square and Cash App incidents shared infrastructure or a cause.
  • How pending authorizations and delayed transfers were handled in every case.
  • Whether affected merchants received compensation or fee credits.

Those limits matter because a service-recovery announcement is not the same as a full post-incident report. Square’s statement established that a fix had been deployed and recovery was being monitored; it did not answer every operational or financial question raised by the outage.

Quick Recap

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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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