thread Square Loan denied for chargegback risk? in Banking With Square

Square Loan denied for chargegback risk?

pixiekb — Wed, 04 Mar 2026 20:24:53 GMT

I've had two successful loans completed and was happy to see another offer come my way last week.

I use square for group trips/travel services/and marketing events and travel marketing. Each customer I have a contract with that would prevent chargebacks from ever happening. And I have 0 chargebacks.

They asked me for more information (I recently connected a different bank account that I don't really use except for Zelle to transfer the funds to one of the group leaders for a trip) and I gave them all the information but I'm wondering if linking the new account messed something up.

I have great reviews and have never received any negative feedback or chargebacks so it's very strange. A chargeback would not happen in my business because of the type of business it is.

The other weird thing that happened was one of my invoices for one of my regular clients got flagged as a security risk and I'm wondering if that had something to do with it. Square even forced me to reset my password and everything. A little frustrating as I was hoping to use the working capital and now my status says that it needs work since I was declined.

I've been on hold now for an hour...to see if I can get some more info but I am not hopeful.

Re: Square Loan denied for chargegback risk?

Minion — Wed, 04 Mar 2026 22:50:17 GMT

hi @pixiekb

Welcome to the Square Community.

Sorry to hear about the hiccup. What type of information did they request from you?

As for the actual denial part, It's pretty hard to really pinpoint sometimes just what exactly caused the denial or even trying to figure out their reasoning. Even many credit card companies give generic reasoning for denials. Could it be the other bank account that you linked? That would be where I would start from by removing that if it doesn't get used much and then see what/if any offers come in in the near future.

I hope you get some answers from support, but being on hold for an hour, I wouldn't expect much of a answer other than what was already sent to you unfortunately.

Re: Square Loan denied for chargegback risk?

Papaya — Thu, 02 Apr 2026 20:03:29 GMT

Hi @Minion

Appreciate you for writing!

I took a look at your account and see someone reached out to you via email. Please feel free to respond to that email with any additional questions or concerns you may have.

Please contact us directly, our Square Loans line is open between 8am-5pm PT Monday-Friday if you want to give us a call.