Funds from both swiped and non-swiped payments will be deposited in merchants' bank accounts within 1-2 business days, a crucial advantage for local sellers who typically don't take payments in person, such as caterers and contractors. The move is an important step to further remove barriers to growth for local businesses, and makes Square an industry leader in eliminating deposit limits and related holds for customers.

"At a small company like ours, it is all about cash flow," said Vadim Semenov, co-owner of Planet Construction. "We're remodeling 15 kitchens a week and typically take payments over the phone. If we don't get our money quickly, we can't buy the drywall, flooring, or lumber we need to get our projects started. Not having to worry about deposit limits is huge for my business and our customers."

Square merchants get their money quickly, whether they swipe a payment card with Square Reader, sell online with Square Market, or take an order over the phone. Square sends funds to a merchant's bank account in 1-2 business days, regardless of transaction type or deposit size.

Removing deposit limits and related holds is the latest step by Square to upend financial norms and make running and growing a business easier than ever for merchants. Square was the first company to introduce a flat, transparent rate for all credit cards, eliminate fixed per-transaction fees, and institute next business day deposits for customers.

Square's Twitter account spent the day encouraging customers facing holds at other companies to sign up with Square.