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Why am I being asked to sign a Commercial Entity agreement and what does it mean for my company?

I am getting a congratulations letter on being a commercial entity, asks me agree to the terms? I read the agreement and I see no benefit to me warranting congratulations. it give Wells Fargo the right to Audit me, demand financial statements and obtain a bunch of info that is none of their business. BTW I have been a business for 25 years. Wells just got fined for unlawful business practices. I do not feel special. Do I have to complete the application. It has worked fine so far. I would at a minimum prefer convey a bunch of rights to a more trustworthy bank. Please advise

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Hello @Thefun1, I can provide some clarification on the Commercial Entity Agreement. 

 

A Commercial Entity Agreement (CE) is a compliance requirement set forth by our Card Network partners. It details Network rules governing the authorization, conveyance and settlement of transactions using services provided by Square via Chase Paymentech (PT). In addition, it is an acknowledgement by the seller that payments processed using Square are associated with a commercial business.

 

Additionally, a CE stipulates that the contractual obligation to provide services to the seller lies with Paymentech (PT), though Square retains ownership of the seller's account. Consent to the agreement is mandatory. In the event we do not receive consent, Square will be unable to continue to accept payments and may chose to freeze or close the account due to non-compliance with the request to sign.

 

Also this applies directly to Wells Fargo as well. I hope this adds some context around this agreement. 

 

 

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