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I know this is an old comment, but in case you didn't find out why, the reason is Square charges a transaction fee to the credit card you are running. This is exceeding the credit limit of the virtual credit card. You need to calculate and remove this fee from the charge you are making via Square to get an approval.
My property was already set to no when these requests starting coming through last week so this isn't a fix.
You guys are not alone. I have also seen a sudden uptick for quiet room requests from Booking.com since last week and it is annoying! You can't even create an automated response to this question. Something has clearly changed on Booking.com's side that needs fixing stat.