Imagine, you are selling online stably with a Stripe payment gateway on your old store, when suddenly, Stripe announced that they decided to lock your account due to violation of industry policy. Prohibited goods?
What is the reason? Because they decide that your business is too risky to continue using their services
This often happens when merchants work with big name payment providers like Stripe or PayPal. While Stripe may be a good fit for some specific sellers, it's not always a good or viable option for all sales brethren.
Fortunately, even if banned by Stripe, the brothers still have other options. Therefore, our PlutusPay today will discuss the industries banned by Stripe and guide the next steps to get your business back to normal quickly.
Why do high-risk merchants still choose Stripe as a payment gateway?
As one of the biggest names in the payment processing space, Stripe is often one of the first choices people think of when looking for a payment gateway solution. However, as many business owners later realized, Stripe is not always as good as people think
In most cases, sellers don't even realize they're one of Stripe's banned businesses until it's too late. These businesses opened an account and started accepting payments, but Stripe decided they were too risky to support and, therefore, locked their accounts.
From their perspective, business was going great – until suddenly, the money in their Stripe account froze. And most of these cases happen when these businesses are in the strongest period of revenue growth.
If you're a new business owner looking for a payment gateway solution, you can prevent this from happening to you by choosing the right payment provider from the ground up. Research carefully and choose a merchant account service provider (MSP) that will support your business much better.
What does being banned by Stripe mean?
There is nothing worse than realizing your funds are being held by your payment provider. However, this is an all too common story because there are many businesses facing the same situation. Merchants banned by Stripe then discovered that the funds in their Stripe accounts were frozen for months to come.
If your account has just been locked (or you are not eligible to open an account from Stripe), this guide will show you how to run a successful Stripe-banned merchandise store. labour. You should read on to find out why your business was banned by Stripe and as well as find other ways to stay in business effectively.
Categories banned by Stripe
There are quite a few reasons why Stripe might refuse to work with your business. You are at risk of being denied or locked out of your account if:
- Stripe is not supported in your country.
- You want to receive payments in currencies other than US dollars.
- Your business is considered a risk due to chargeback rate issues
- Stripe does not support the industry you are in.
If you are in any of the following businesses, Stripe may immediately reject or block your account. Below are some of the categories banned by Stripe by sector.
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Tourism:
The volatility in offering services like bookings, car rentals, and credit card stays makes payment processing an issue for payment providers like Stripe.
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Game online:
Gambling and online sports fall into this category. Stripe is particularly strict with these services due to state regulations in the US regarding gambling.
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Digital products and services
Non-physical products, especially on Shopify, can be problematic for Stripe. Digital purchases with credit cards are highly susceptible to customer complaints, making e-book sales, online courses, and marketing services high-profile items. high risk.
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Foreign currency trading (Forex):
Considered one of the most volatile investment sectors in the market, in part because the chargeback rates of these transactions are so high.
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Entertainment services for adults
Major payment providers like Stripe ban any NSFW (Not safe for work) content outright. This includes adult toy stores, digital adult content, and includes adult dating services.
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Jewelry and Precious Metals:
Sellers of expensive products such as gems or precious metals must obtain pre-approval permits from payment providers. Otherwise the chargeback rate will be very high for this type of transaction.
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Functional foods:
The main problem is the lack of approval from the US Food and Drug Administration (FDA). Supplements, vitamins, and herbal products are high-risk items for disputes due to lack of regulation from the FDA.
In addition, there are other prohibited categories including:
- CBD Products
- Payment provider
- Telecommunication services
- Financial institutions
- Telemarketing Service
- Online pharmacy
- Cigarettes and electronic cigarettes
- Non-profit organization
For more details, you can see the full list of restricted categories on the official Stripe website.
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