Can I use Square for my Pawn business?

[BAMBuysllcMI]

Hello,

I am trying to find a way to use Square in my business in which I buy peoples items and then give them the first chance to buy it back in 14 days. "PAWN" another words. Is there anyone out there that can give me advise as too giving "LOANS" and then collecting tax only on the 30% interest,.  and also giving them the chance to only pay the interest AND renewing the "pawn" for another 14 days??

Thank you in advance 🙂

[Donnie-M]

@BAMBuysllcMI I would be really careful here.  State and local laws greatly regulate pawn brokers from what I understand and the reporting requirements with state law enforcement agencies.  Square really isn't made to do this type of transacting from what I know and you could run afoul of being a "financial service" and you couldn't use it for any types of weapons including knives etc.

https://squareup.com/help/us/en/article/5089-prohibited-goods-and-services-with-square-point-of-sale 

Several people have tried to call pawn loans "buy-sell agreements" but several courts have ruled you can call a duck a horse, but it is still a duck.  So I wouldn't try that either.