Paypal Working Capital & Zettle

[HomeCrafters]

Wondering if anyone else has come across and resolved issues with being granted eligibility for Paypal Working Capital since moving to a Zettle card reader?
I've been with Paypal for over 10 years, increasing revenue YoY and had several WC agreements (all paid off early)

Was encouraged last year to change card reader to 'new partners' Zettle and, since the Paypal Here reader was shockingly bad, I jumped at the chance.
All transactions have been going through Paypal via Zettle but have been 'ineligible' for WC ever since I repaid my last loan in January 2022

After being thrown from pillar to post trying to work out why I was no longer eligible, (Zettle telling me it's a Paypal issue and vice versa) I finally discovered that for some reason, the income via Zettle is no longer recorded in the algorithm when working out eligibility - Paypal could see exactly how much was coming into the account but for reasons unexplained cannot use that (very same) income any more??!

Wondering if anyone else has come across this issue and found a workaround?
Not all my income is from my card reader but the majority is - I tried changing the transfer from weekly to daily to show consistent daily income but I am told that without the individual transactions (i.e. the quantity) being recorded on Paypal they can't count the income?

I was under the impression Zettle & Paypal were one and the same, was certainly made to believe that when I was encouraged to change card reader last year..... now I feel penalised for doing so. The WC loan has been a lifeline in the past and always counted on it when needed, now I can't fall back on it I am seriously considering leaving Paypal behind me!

[miroslife]

Everything you have described fits my situation to a “T”. I’ve been dealing with this exact issue since Feb of 2022, the working capital agent I spoke to suggested switching back to PayPal Here to which I fear will cause me more problems down the line.

[HomeCrafters]

Well, there must be numerous people in this situation - Zettle have now updated their side to announce they no longer offer the cash advance.
I don't understand why it is so difficult for Paypal to recognise the Zettle income to a business?
Surely its a case of monitoring the deposits and understanding that it's the same income they originally measured the cash advance eligibility against?

Why are they taking so long to resolve it?! surely its in their best interests as the loans aren't exactly the cheapest option!

as for going back the the Paypal Here device - that tech is so antiquated! I don't trust it to take payments anymore (which is why they introduced the Zettle machine no doubt!)

Have you had any further progress with the issue at all?

[CRAZYFISH01]

I am also being declined - had 24 previous working capitals - paid back early too . No problems & I have found it essential to my business . Also had to swap to izettle .. however I was told when my paypal here card reader had broken - I had no choice / it wasn’t available anymore ? Was this the wrong information ? This decline has been a disaster for my business coming up to Christmas & I keep having emails to apply too . Which decline code is everyone getting ? I hope to goodness they sort this out & it’s as helpful as a chocolate teapot calling customer services - they just don’t know the answers .

[Utahsvapeguy]

I'm dealing with this problem right now. I was advised to move over to the zettle program as PayPal here is about to be discontinued completely. At least that's how it was told to me by the PayPal representative. Now it just denies me over and over again since I've started using zettle. I hate to have to recommend this, but I almost feel like the quicker option is moving over to square. It doesn't seem like zettle nor PayPal wants to fix this issue or can fix this issue. It's very frustrating. I was in the middle of a two-part expansion with my business and when I went to reapply I got hit with DLDJ 0905. I haven't been displeased with PayPal until this point.

[jennettaH]

Hi! My name is Justin and I can further assist you. Zettle is PayPal product as that is a company we acquired. Because it is a product we offer as a POS I have not heard of any intent to add working capital separately to Zettle. You can contact PayPal working capital directly a[Removed. Phone #s not permitted]M-F 9a-8p ET for more information about working capital and any upcoming additions for that product. Feel free to reply whenever you're ready and we'll reply as soon as we can. 10:55 AM - Justin This is what I was told, so we may as well just change back to Square!

[davoaxoim]

This is still an ongoing problem. I switched to Zettle because let's face PayPal Here have no future plans to add any features including a usable inventory system.  I switched over to Zettle in late June, Paypal Capitol continued to take a percentage of all sales that came from Zettle with no issues. 

Now that I have paid off my 6th Capitol Loan, it declines. I spoke to both a Paypal and Capital Loan representative and the only answer I got was the "system" has noticed a difference in the way I'm doing transactions on the PayPal Account and there is not a thing they can do about it. They suggested going back to Paypal here for a few months and trying again or waiting for them to resolve a known issue with the "system".  I get why the trigger is there. It's designed to avoid someone switching to a third-party payment processing service to I'm guessing avoid paying back the percentage but Zettle is the PayPal Here replacement. 

However, since this is supposed to be based completely on sales, it should make a difference in how the money is delivered into the account. When it came to taking out the percentage it seemed to have no issues at all and noticed no difference from how it works with Paypal here. Both representatives verified that there are different sales continuing to enter the account and have in fact steadily increased. When I asked if there was any way to have it submitted for human review, they said, "No, it all is handled by the system and there is no way to override it."  They said they would forward it on to the development team and to try applying again in a month or so.

The thing is that a capital loan at this time was part of my operation plan for the fourth quarter. So, all of that is now delayed. Very frustrating and has me considering and researching other payment processing services.

[davoaxoim]

The latest is PayPal here is dead, no new accounts, and only selling readers to existing merchants. I was told by a Rep that Zettle is going to go to immediate payment unlike now where funds are deposited the next day. This may fix the issue but who knows?

[dbp2019]

I have had the same issue, moved to Zettle in February 2022, because PPHere stopped working.  Current PPWC loan continued to be deducted as normal, payed off early in November.  Tried to apply for my 7th PPWC loan and got denied.  Spoke to both WC and PP, both advised that the algorithm does not recognize Zettle, but that their team is diligently working on the problem and to keep applying.  I advised of the money that they are losing in fees and that there are other options available, but the ease of the working capital loan is why I choose it.

Anyway, I have noticed in the last 2 weeks that the Zettle payment is a real time payment now and not the next day transfer as it has been in the past.  Maybe this is the first step in getting this corrected.  We can only hope! 

May take their advice, and keep applying, before seeking alternative funding.

[HomeCrafters]

I am yet to see the real time payment rather than next day transfer (maybe a UK thing?)
but real time payment should override the algorithm eventually as that is the reason Paypal gave me for not accepting the daily transfers - they need to 'see the individual transactions' apparently
(why they cannot see them in Zettle since they are the 'same' company now who knows?) 
still holding out hope they will change this soon!