When Stripe Terminates Your Merchant Account
Last Updated on November 30, 2023 by Corepay
Has Stripe terminated or frozen your merchant account?
When Stripe terminates a merchant account, it can have significant consequences for your business, including frozen funds and limited payment processing options.
In this article, we will guide you through dealing with a terminated Stripe account. You’ll learn to determine if your account has been terminated, understand why it happened, and explore possible solutions. We will also discuss the MATCH list and its impact on obtaining a new merchant account.
With our help, you’ll be equipped with the knowledge and strategies needed to effectively handle a terminated Stripe merchant account and ensure the continued success of your business.
- Stripe often terminates or freezes merchant accounts without warning or explanation, leading to account closure and held funds.
- It is vital to contact Stripe customer support and consider partnering with another payment processor if funds are held.
- Stripe evaluates the financial risk of partnering with a business based on industry reputation and chargeback ratios, which can result in account termination.
- A backup plan and considering a high-risk merchant account are important in case of termination of a Stripe account.
How To Tell If Stripe Merchant Account Was Terminated Or Frozen
If you’re a business owner relying on Stripe for payment processing, finding out if your merchant account has been terminated can leave you feeling anxious and uncertain about the future of your business. Fortunately, some signs can help determine if your Stripe account has been terminated.
The first indication is usually when you receive an email notification from Stripe stating that your account has been closed or suspended. Additionally, if you try to log in to your Stripe dashboard and encounter an error message or cannot access your account, it could be a sign of termination.
It’s important to contact Stripe customer support immediately for clarification and the next steps if you suspect your account has been terminated.
Why Did Stripe Freeze My Payment Processing?
Stripe may freeze your payment processing for several reasons. One possible explanation is if you’ve been flagged as a high-risk merchant due to the nature of your business or a high number of chargebacks.
Another reason could be if you’re engaging in prohibited activities that violate Stripe’s terms and conditions.
Additionally, if there are ongoing customer complaints or an increase in fraudulent transactions associated with your account, Stripe may freeze your funds to protect themselves and their customers.
Reviewing and understanding Stripe’s policies to ensure compliance and avoid account termination or fund freezing is essential.
What Is The MATCH List, And Can You Get Off?
Merchants placed on the MATCH list by Stripe are not likely to be able to get removed from it.
The MATCH list, also known as the Terminated Merchant File (TMF), is a database that contains information about high-risk businesses. If your business is on this list, getting approved for a merchant account under the same DBA could be nearly impossible.
It’s essential to have a backup plan in case removal doesn’t happen, and consider working with a high-risk merchant service provider who specializes in dealing with these situations.
Main Reasons Stripe Terminated Or Froze Your Account
Curious about why your Stripe account got terminated or frozen? Let’s discover the main reasons behind it and what might have caused this unexpected setback.
Here are the possible reasons for Stripe terminating or freezing your account:
- Unauthorized or banned merchant status:
- Engaging in prohibited activities can result in immediate account suspension or termination without warning. It’s crucial to read and understand Stripe’s terms and conditions to avoid breaches.
- Stripe evaluates the financial risk of partnering with a business based on industry reputation and chargeback ratios.
- High-risk merchant status
- Specific industries, businesses, or practices are deemed high-risk by Stripe. Being classified as a high-risk merchant can increase the likelihood of account closure.
Understanding these reasons can help you navigate potential pitfalls and prevent future issues.
What To Do When Stripe Freezes Account
Are you feeling frustrated and helpless when your business suddenly loses access to funds? Here’s how to take action when Stripe freezes your account.
First, reach out to Stripe’s customer support immediately. While their response time may be slow, it’s crucial to start the process of resolving the issue.
In the meantime, consider partnering with another payment processor so you can continue accepting payments.
If you believe your account termination was unfounded, gather evidence that proves your transactions meet Stripe’s policies and submit it within 30 days. Be aware that if customer complaints persist, Stripe may withhold funds indefinitely.
To avoid future disruptions, consider working with a high-risk merchant service provider specializing in handling chargebacks and fraud. Remember, having a backup plan is essential for uninterrupted payment processing for your business.
Corepay Payment Processing For High-Risk Stripe Merchants
Corepay understands the unique challenges of being labeled high-risk and provides tailored solutions to meet your requirements.
By partnering with Corepay, you can access our advanced fraud prevention tools, chargeback management systems, and robust security measures. We specialize in industries other payment processors may shy away from, such as adult entertainment, online gaming, online dating, CBD, vaping, travel, and sweeps.
Not only does Corepay offer seamless integration options for your website or app, but we also provide exceptional customer support to ensure smooth operations. We also pride ourselves on 100% transparent payment processing, so you’re not confused by fees.
If you want to grow your business to new heights without fearing Stripe freezing or terminating your merchant account, skip the foreplay and come to Corepay.
We are confident that we can provide value to you that other payment processors simply cannot. Please fill out the application below to find out what we can do for you.
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