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Why Processors Suspend Legitimate High Risk Merchant Accounts

Are you worried about your payment processor while running your business online? Do you wonder when your processors can suspend or terminate high risk merchant accounts even if they’re legitimate? This article will tell you about the reasons and help you solve your issues.

Why Is Your Merchant Account Suspended or Closed?

When working with payment processors, it’s of huge importance to keep a close eye on your merchant account. This also refers to any correspondence you have with your processor. So, never fail to read your monthly statements. Besides, make sure you aren’t violating the terms of your merchant agreement.

If you’re working with payment processors like Stripe and PayPal, be aware they classify businesses into 3 categories. The first category includes normal businesses without any problems. The second group includes prohibited businesses like online casinos and drugs. The third category includes the high risk businesses.

Well, what makes your business high risk?

  • The Nature of the Products/Services You Offer

Digital products, software, and other online deliverables are often deemed as high risk because of the lack of no tracking number for shipping and difficult delivery confirmation.

  • Higher Rates of Chargebacks and Disputes

Many digital products are associated with higher rates of chargebacks because they’re easy to scam. Another reason is that the given business is running globally rather than in just the US, UK, or in another basic business region for the processor.

  • Payment Processing Fraud

The risk of payment processing fraud is the first reason that can automatically make your merchant account suspended. Some examples of fraud include misused personal information (e.g., credit card numbers and details), overcharging, not delivering products/services, and more.

  • Multiple Merchant Accounts

If you’re using a merchant account underwritten by the given processor, the latter won’t allow you to have another active merchant account while using it. Some processors will terminate your merchant account in case they find out you have another one with their competitor.

Legitimate High Risk Merchant Accounts Suspended or Closed?

Has your merchant account been closed or suspended? What should you know about such situation and do in this concern?

Well, there’re several things to take into account in his regard. First, merchant account freezes and terminations have a negative impact on your record and your name will appear on the terminated merchant file (TMF). As a result, other processors will know about all this, thus it’ll become more challenging for you to get approved for another merchant account.

The first step to take is to start searching for another processor as soon as possible. Remember that mainstream payment processors won’t be willing to work with you if you have a suspended merchant account.

The best way out is to look for a reliable high risk merchant account. Be aware that you’ll be charged more for high risk merchant accounts as compared to regular ones. However, you’ll at least you’ll be able to process payment transactions.

Look for a respectable payment processing company like that’s rated the nation’s #1 high risk merchant account provider in the US. EMB offers the lowest rates for high risk merchant accounts in the industry. Also, carries an A+ rating with the BBB and an A rating with Card Payment Options.

EMB has helped thousands of high risk merchants open accounts and knows all your pain points best of all. Importantly, talks to every business owner and only then offers merchant services. That’s why EMB’s merchants get the right services tailored to their own specific business needs.

Another great thing about is that EMB offers a chargeback mitigation program called Chargeback Shield* to help you reduce merchant ratios.

After finding a new processor, start streamlining your activities and dealing with realities that could have made your account suspended the first time. A good processor will be a helping hand in managing fraud and chargebacks.

Beyond that, always respond promptly to your processor’s requests. Keep cooperating with your merchant account provider so to be able to resolve issues before the processor suspends your account.

Payment processing is a vitally important aspect of virtually any business. You should do your best to avoid a hold, freeze, or termination of your account. However, even if your processor has decided to cut ties with you, know what steps you should take.