If your Clover merchant account has been terminated, it can be a major disruption to your business. Many merchants rely on Clover’s POS and payment processing solutions, but terminations can happen for various reasons. In this guide, we’ll discuss why Clover shuts down accounts, what steps you should take after termination, and how Corepay can help you continue processing payments seamlessly.
Why Does Clover Terminate Merchant Accounts?
Clover, like all payment processors, follows strict policies and risk assessments to protect its network. The majority of Clover terminated merchants have high chargebacks, or are operating in industries in which Clover restricts, such as medspas.
Why Does Clover Terminate Merchant Accounts?
Clover, like all payment processors, follows strict policies and risk assessments to protect its network. Here are some common reasons why Clover may terminate a merchant account:
1. High Chargeback Ratio
Excessive chargebacks can label your business as high risk, leading to account closure. Processors, including Clover, monitor chargeback rates closely and may act preemptively. If your chargeback rate exceeds 1%, your account may be flagged for review.
**Chargeback prevention specialists.
How to Prevent Chargebacks
- Use fraud detection tools to identify suspicious transactions.
- Provide clear refund policies and excellent customer support.
- Work with a chargeback management service to dispute fraudulent claims.
- Implement strong transaction monitoring and validation processes.
2. Violations of Terms of Service
Clover has a strict list of prohibited activities. If your business engages in activities that violate these terms—such as selling restricted goods, misrepresenting transactions, or engaging in fraud—Clover will likely shut down your account.
Examples of Violations
- Selling unapproved high-risk products like CBD, supplements, or tobacco.
- Processing payments for another business under your account (transaction laundering).
- Repeatedly exceeding the approved processing volume without notifying Clover.
- Failing to provide accurate business details during onboarding.
3. High-Risk Business Category
Some industries are considered high-risk due to the nature of their transactions, regulatory scrutiny, or historical chargeback rates. Even if your business operates legally, Clover may still terminate your account.
Industries That May Face Termination
- CBD and hemp businesses
- Adult entertainment services
- Online gaming and gambling
- Subscription-based businesses with high refund rates
- Nutraceuticals and supplements
- Medspas
4. Suspicious or Unusual Transaction Patterns
If Clover detects abnormal activity, such as sudden sales spikes, international transactions, or inconsistent processing behavior, it may flag your account and eventually terminate it.
Red Flags That Can Trigger Termination
- Large transactions that don’t match your usual sales volume.
- Multiple declined transactions from the same IP address.
- Inconsistent refund patterns that suggest fraud.
- High volumes of international transactions without prior approval.
5. Compliance and Regulatory Issues
Businesses that fail to comply with industry regulations or card network rules risk account termination. Clover must adhere to banking laws, and if your business presents regulatory concerns, it may be removed from the platform.
Common Compliance Mistakes
- Failing to verify customer identities in regulated industries.
- Not maintaining PCI compliance for credit card transactions.
- Selling products that require special licensing.
- Misrepresenting business activities to avoid high-risk classification.
What to Do After Your Clover Account Is Terminated
If Clover shuts down your account, here’s how to handle the situation:
Step 1: Review the Termination Notice
Clover typically provides a termination notice with a reason. Carefully analyze the document to determine the cause and whether you can dispute the decision.
Step 2: Contact Clover Support
Reach out to Clover’s support team for further clarification. In some cases, errors occur, and accounts can be reinstated upon review.
Step 3: Retrieve Your Funds
Clover may hold your funds for up to 180 days to cover potential chargebacks. Make sure you understand their reserve policies and the process for fund release.
Step 4: Identify and Fix Risk Factors
If your termination resulted from excessive chargebacks, fraud concerns, or compliance violations, work on rectifying these issues before applying for a new processor.
Step 5: Find a New Merchant Account Provider
You’ll need to secure a new payment processing solution quickly to avoid disruptions to your business.
How Corepay Helps Businesses After Clover Termination
Corepay is a premier payment processor specializing in high-risk merchant accounts. If you’ve been dropped by Clover, we offer solutions tailored to your business needs.
1. We Accept High-Risk Merchants
Unlike Clover, Corepay works with businesses in high-risk industries, including CBD, gaming, adult, and supplements.
2. Fast and Reliable Approvals
Our streamlined onboarding process ensures quick approvals so you can start processing payments without major delays.
3. Chargeback and Fraud Prevention Solutions
We provide advanced tools to help businesses minimize chargebacks and reduce the risk of future account terminations.
Key Features:
- AI-powered fraud detection
- Chargeback alerts and representment services
- Secure tokenization and encryption
- Proactive risk monitoring for transactions
4. Multi-Gateway Payment Solutions
Corepay supports various payment gateways, enabling businesses to process credit cards, ACH payments, and alternative payment methods securely.
Available Payment Methods:
- Credit and debit cards (Visa, Mastercard, AMEX, Discover)
- ACH and eCheck payments
- Cryptocurrency payments
- Contactless and mobile payment solutions
5. Compliance Support and Risk Management
We ensure merchants stay compliant with industry regulations, helping them avoid regulatory issues and processor shutdowns.
How Corepay Ensures Compliance:
- Assistance with PCI-DSS certification
- Guidance on high-risk product labeling and marketing
- Regular account monitoring to prevent issues
- Advanced reporting tools to track compliance risk factors
6. Dedicated Customer Support
Corepay provides personalized support to assist merchants with chargeback mitigation, compliance, and ongoing payment processing needs.
Get Back to Business with Corepay
Losing your Clover account can be frustrating, but you don’t have to let it derail your operations. Corepay provides stable, high-risk-friendly merchant services to ensure you continue accepting payments without interruption.
