Introduction –
One of the most important things that you ought to know about stripe is that, it is one of the best payment gateways and it is one of the well-known ways to process debit card and credit card transactions. Besides all of that, the cash flows through the card holder, through the gateway and into the bank account. If you are a high-risk business, then merchant accounts which are known as high-risk by stripe, it can be banned. You can also look here for more details on, stripe high risk business. Now, many businesses are there that are high risk and they have queries like what happens if they are banned? Continue reading to know more.
Right to Ban High Risk Business –
An important thing, that you should know is that stripe reserves the right to close or ban a merchant account for cause. All you need to understand is that, your businesses must abide by stripe’s policies, regulatory requirements and terms of service. One of the most common ways in which you can be banned or are banned is closing one’s account. Besides all of that, the repercussion of being banned are several. What happens when your account is closed? The first and the foremost thing is that, you cannot process the transaction, next is that, you cannot accept the payments, apart from that, you cannot access funds in your account, besides all of that, you are reported to high-risk merchant database like MATCH. Being subject to extra fees and penalties and not being addressed properly or knowing the reason for ban are other.
Chargebacks & Purchase –
Firstly, you can’t bring money if you cannot process the payments or accept transactions. Next, if you lose access to the funds in your account, then it can stop your business. Besides all of that, if you if there are chargebacks, then it will be deducted from these funds. Moreover, disbursements to the card-holders who purchased something, but did not get their purchase will be sorted out by stripe. Moreover, these funds will come from your account.
Common High-Risk of Industries –
There are many high-risk industries that stripe has banned. Some of them are adult entertainment, the industry is considered high-risk because of legal implications, age restrictions & also high charge back rates. These are businesses that includes websites with video streaming, strip clubs, & adult toy stores. Next, industry is travel and tourism. The travel industry faces high-chargeback rates & also, financial instability due many cancellations and also the impact of external factors, like weather or political unrest. Some of such businesses includes tour operations, travel agencies, airline ticketing business and so on. Gambling and casinos, pharmaceuticals and nutraceuticals, e-commerce, tobacco vaping and so on are the industries that are considered as high-risk.