Running an eCommerce business comes with many challenges, but nothing is more disruptive than having your payment processing frozen or terminated by Shopify. For high-risk merchants, this scenario is all too common. Understanding why Shopify may freeze your account, how to resolve the issue, and why choosing a dedicated high-risk payment processor like Corepay is crucial for long-term success.
Was Your Shopify Merchant Account Frozen Or Terminated?
At Corepay, we have been helping Shopify merchants secure reliable payment processing and we have helped many Shopify users when their Shopify accounts have been terminated/frozen.
Why Shopify Freezes Merchant Accounts
Shopify Payments, the platform’s integrated payment processing service, has strict policies regarding the types of businesses it supports. If your industry falls under Shopify’s prohibited business categories, your account may be suspended without warning. Here are the most common reasons Shopify freezes merchant accounts:
- Operating in a High-Risk Industry – Shopify Payments does not support industries such as CBD, adult content, firearms, gambling, or certain supplements. Even if your business is legal, Shopify’s Terms of Service (TOS) may prohibit it.
- Excessive Chargebacks – If your chargeback rate exceeds 1%, Shopify may freeze or terminate your account to mitigate financial risk.
- Suspicious or Unusual Transactions – Large spikes in transaction volume or unusual sales patterns can trigger an account review or suspension.
- Non-Compliance with Shopify’s TOS – Selling prohibited products, using misleading marketing, or violating intellectual property rights can lead to a frozen account.
- Suspected Fraudulent Activity – If Shopify’s fraud detection system flags your account for potential fraudulent transactions, your account may be suspended pending further investigation.
Corepay offers CBD payment processing, firearms payment processing, automotive payment processing, as well every other vertical which is legal.
Learn more about our Shopify high risk merchant accounts here.
Steps to Take When Your Shopify Account is Frozen
If Shopify freezes your account, follow these steps to minimize downtime and restore your ability to process payments:
1. Identify the Issue
Shopify typically provides a notice explaining why your account was frozen. Log into your dashboard to check for alerts or emails detailing the suspension.
2. Contact Shopify Support
Reach out to Shopify’s customer support team to gain clarity on the reason for the freeze and whether reinstatement is possible. If the issue is fixable (e.g., chargeback management, missing documentation), Shopify may allow you to resolve it.
3. Determine if Shopify is the Right Platform for Your Business
If Shopify has flagged your business as high-risk, it’s time to evaluate alternative solutions. Shopify Payments will not reinstate accounts that violate its TOS, meaning you’ll need a high-risk payment processor.
4. Set Up a Merchant Account with Corepay
Corepay specializes in high-risk payment processing, ensuring your business can continue to accept payments without the risk of sudden freezes or terminations. At Corepay, we will never terminate an account without an explanation and warning.
Why Choose Corepay for High-Risk Payment Processing?
High-risk merchants require a payment processor that understands their industry and provides tailored solutions. Corepay offers:
- Approval for High-Risk Businesses – Unlike Shopify Payments, we work with businesses in restricted industries such as CBD, adult content, gambling, and nutraceuticals.
- Chargeback Prevention & Management – We provide advanced tools to keep your chargeback rate below critical thresholds.
- Fraud Protection & Security – Our AI-powered fraud prevention tools minimize the risk of fraudulent transactions and account freezes.
- Custom Payment Solutions – Whether you need recurring billing, multiple payment options, or crypto payments, we offer solutions that fit your business model.
- Dedicated Support – Our high-risk merchant experts provide 24/7 assistance to keep your business running smoothly.
How to Switch to a High-Risk Processor
If your Shopify account has been frozen and reinstatement is unlikely, transitioning to a dedicated high-risk payment processor like Corepay is your best move. Here’s how to make the switch:
- Apply for a Corepay High-Risk Merchant Account – Submit an application with basic business details.
- Get Approved in as Little as 24 Hours – Our underwriting team quickly assesses your business and provides a custom payment solution.
- Integrate with Your eCommerce Platform – We offer seamless integration with Shopify (using third-party gateways), WooCommerce, Magento, and other major platforms.
- Start Processing Payments Again – Once set up, you can continue accepting payments without worrying about sudden freezes.
Final Thoughts
A frozen Shopify account can disrupt your business, but it doesn’t have to be the end of your eCommerce operations. By understanding Shopify’s restrictions and securing a reliable high-risk payment processor like Corepay, you can safeguard your ability to process payments and keep your business running smoothly.
If Shopify has frozen your merchant account, contact Corepay today to explore payment solutions tailored to your high-risk industry.
