Don't you think this is an awesome opportunity for Square to explain to the author how charge backs work and why he should have money in his account? Perhaps if they used something other than cryptic replies they could help him understand the entire process and help make him even more of a Square advocate than he was before? That would be a HUGE differentiator from PayPal.

I would definitely say funding is for increasing customer service and trying to create as many advocates of your service as possible!