Square Loan Eligibility - Failed Debits

[rzrshop]

[The title of this thread has been edited from the original: failed debits]

• Failed debits. Your Square account is reviewed for failed debits due to insufficient funds. Please be mindful of the amount of funds available in your linked bank account to avoid failed debits.

Does this mean debits that square is trying to pull out or if you have a square debit card and vendors try to run card and it fails? Can someone specify

[VanKalkerFarms]

Edit:  deleted because I misunderstood the question.

[Cameron_ · Accepted solution]

Hi @rzrshop, 

Thank you for your question and being part of the community. 

Failed Square Debit Card transactions do not affect your eligibility for a Square loan. However, failed ACH debits made by Square to your linked bank account may affect your eligibility. 

Aspects of your processing history such as failed debits, chargeback history, and changes to your processing behavior may impact potential future offers. Failed debits include ACH debits made by Square to your linked bank account. Please be mindful of the amount of funds available in your linked bank account to avoid failed debits.

If you have any additional questions, please feel free to contact us.

[KitKat2023]

Failed made by Square for what? What type of failed debits? 

[Candlestore]

@KitKat2023 ;

As I see this is your First post let me welcome you to the community forums.  

Could have been for failed Loan payments for example.  With Square they use a percent of Credit Card sales to payback a loan with a minimum due by a certain date.  If that minimum is not met Square debits you attached Bank Account.  That is one example of why Square would Debit your linked Bank account.  Another possible reason would be not paying the loan for buying Equipment on a Purchase Plan through Square.  And then there are Chargebacks like when someone may use a Stolen Credit card that was not reported right away and you have to refund Square and then Square refunds the authorizing bank because they will always favor the customer that holds the bank card, and small businesses lose.   

Since I do not know the specifics of theses claims above I am just guessing what Square could pull money from an account for.  This is listed in their terms.  It is also listed again whenever you borrow money or take a payment plan to buy equipment from Square.  There might be more reasons that I am not familiar with, but if you bought your Square POS system out right and have no loans or Chargeback complaints, which are the most common reasons for a debit, you should not have to worry.  The only Debit to my account from Square has been the initial .02 cents or something stupid after they Deposited .02 cents in my account to verify my account back in 2019.