How many of you have more than one square account?

[tankspaintball]

I have a question for you. I own several retail locations. I also own the wholesale company that my retail locations as well as other retail operators purchase from. I had a message from Square stating that it is against Square rules for my retail locations to purchase from the wholesale using a credit card. Now I do use the cards from each business as i get miles from the purchases and other perks with points. Has anyone had this issue as well? We have been in business for 30 plus years and never had this issue before. Each entity is separate company with EIN and separate bank accounts. Just curious. 

[Donnie-M]

@tankspaintball you are treading a very fine line on what the credit card companies could call self dealing/abuse, gaming the system, comingling, etc.  You could run some tax risks also, I would definitely talk to your tax advisor about this first.

I think the problem is that if you one ownership over multiple accounts, square looks at it as 1 business.  Is the credit card attached to square in any way?  Also, why would you pay almost 3% to run transactions back and forth through the companies?  I don't know of any credit card rewards that would completely offset that once you count your time and energy in doing it.

I think the problem here is the following (while what you are doing might be completely legitimate): it could be viewed as artificially inflating your business transactions for the purpose of obtaining credit or future credit.  There is a risk to square here that could be hard to mitigate.  The most important part though is it is probably against the terms of service.  I just don't think it is worth paying the card processing to do what you are doing.