Seller asks PayPal to reject bots that decline their loan

Dear Ina,

I applied for a PayPal fourth working capital loan and was very surprised to find it rejected after successfully repaying 3 previous loans and having a pristine record with PayPal for over 16 years as confirmed by numerous PayPal regulators.

I phoned all sorts of PayPal employees for a day and a half to resolve my rejection problem and that’s what I found out.

PayPal Zettle called me in early July this year to use PayPal Zettle as a POS payment processor because they said they were phasing out PayPal Here, which I have been using for 7 years.

I agreed to try it, but I hadn’t set up or used this Zettle product yet.

A Zettle employee said Zettle restricted all new Zettle accounts in late July. He told me that the restriction was intended as a harmless guardrail to keep people from closing their PayPal accounts until all funds have been transferred from Zettle, and that it might be impossible to get a PayPal working capital loan.

He put me on hold and came back and said his manager said it was a known issue that the Zettle restriction is causing an issue on working loan applications. The restriction was interpreted as a severe account limit in the algorithm that determines eligibility for a working capital loan, and this bug resulted in loan applications being rejected.

Four different PayPal employees, after scouring my account for evidence of my rejection, told me that the Zettle restriction was the only thing preventing me from getting a working capital loan.

I waited two days hoping this glitch would be resolved and contacted PayPal Working Capital again. Your representative told me that they did not recognize this error as a problem. This means the Zettle people never communicated this issue to working capital.

I eventually got a Paypal business account supervisor to remove the Zettle restriction from my account and tried again to apply for a working capital loan but was declined.

A working capital overseer told me that it would likely take at least 30 days for the working capital algorithm to lift the Zettle restriction. I was wondering 30 days from what date?

So after successfully paying back 3 PayPal working capital loans, I am bullied by PayPal for agreeing to try a new PayPal product that I haven’t even touched. The working loan supervisor told me that nothing can be done to override the algorithm.

I’ll let you know about this problem as I can’t be the only one who had this problem. Until that date I am still being denied.

Working Capital said, just keep applying until the algorithm no longer rejects my application. As the head of accounting said, “They are just trying to get us more business.” Yes, that was the plan.

Hopefully this explanation can help others who are having difficulty applying for a PayPal working capital loan.


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