When I see a member trumpeting Squaretrade all over their listings, the first thing I think is "This seller cannot handle their own problems, and has to resort to paying off a company to remove their negs."
That being said, their "verification" is a farce. They called us up once offering Warranty service. We said we'd think about it. Without filling out one form, all of a sudden all our listings were getting the squaretrade logo inserted as a "trusted" member offering warranty service. (We had agreed to a dispute process with a seller a couple years ago, so I suppose that's how thay had some sort of authorization into our account - That got revoked REAL quick!)
Many e-mails back and forth later, I could not get a straight answer from them on how we got hooked into this program.
Bit of a story, but essentially boils things down to if I had a choice between a member and one that wasn't, I'd likely choose the one without. I'm likely not the only one thinking this way.