I am wondering how this turned out for you. I have a similar experience where all of a sudden square was ok with my business and than all of a sudden they are not and are saying that I am a high risk business; even though we are not.
I operate a tow truck company and we take a large number of credit cards over the phone in order to secure our services so that we are not aimlessly running around to stops and not getting paid because the customer decided to call 5 companies to see who shows up first.
At first I thought Square Loans were great, they helped my business tremendously; so much so that i increased the cards that I take and went away from some of the ACH processes that I had previously used. Unfortunately it seems as though this has actually negatively effected me with whatever the square model is for eligibility requirements.
When I was processing under $75,000 i received loan offers regularly, thus I increased my processing to over $300,000 from regular and over 70 new customers per month; I thought it made sense. However; I began to be denied for square loans; not because I haven't paid them back; on the contrary... my increase in volume allowed me to pay each offer back in roughly a quarter of the time. It seems that I am being denied because or so I am told that due to me processing a large number of Card not present transactions; this makes me in increased risk. My issue here is that I have not changed anything. So the transactions that are now viewed as high risk are the exact same transactions that paid off the previous 6 loans given to me; in about a quarter of the term. The only thing that i can think of or concede is that for about a 5 month period we went from 0 chargebacks to about 40 as we addded over 3000 new customers and needed to make some adjustments to our refund policy as we transitioned from a primary ACH and Cash business. But despite correcting those issues on going back to 0 charge backs in the past 6 months or so. We still have been denied for offers. It seems as though all answers are generic and all of a sudden my business is not one that square likes to work with in regards to capital. Although they will continue to process my transactions and take the fess associated. I am interested in knowing anyones exoerience with Paypal in regards to business and working capital. And I have recently began to entertain some companies that focus on the towing industry as well as others like clover who pass the processing cost on to the customer. and a couple who are willing to negotiate on the rates of Card Not present transactions. I had previously been loyal to square due to the assistance with capital; however, it seems that they have taken a turn against businesses that process like mine. I would welcome the opportunity to be pointed in the right direction by others who process a large number of card not present transactions. especially if you are in the tow or transport business.
