Learn which industries are most vulnerable—and what to do when the big platforms say no.
Quick Summary / Key Takeaways:
- Stripe, PayPal, and Square can suspend or ban your account with little warning if you’re in a “high-risk” category.
- High-risk doesn’t mean illegal—it means higher perceived chargebacks, regulatory exposure, or reputational risk.
- If you sell CBD, adult products, nootropics, supplements, or offer recurring billing, you’re likely at risk.
- Getting banned means frozen funds, blocked orders, and broken integrations (especially on Shopify or WooCommerce).
- InclusivePay offers stable, long-term merchant accounts for industries that mainstream processors blacklist.
Table of Contents
1. Why Payment Platforms Ban “High-Risk” Merchants
Stripe, PayPal, and Square aren’t built for complexity. They’re designed for low-risk, mass-market businesses: ecommerce stores selling socks, software subscriptions, or digital downloads.
The moment your business triggers their internal risk filters, you’re either under review or outright banned.
Reasons for bans include:
- Regulatory risk (CBD, functional mushrooms, research chemicals)
- Reputation risk (adult, coaching, lightworker services)
- Financial risk (subscriptions, chargebacks, disputes)
- Platform misuse (bundling prohibited products, unclear billing flows)
The risk thresholds aren’t public, and they change. Worse? You’re rarely told why you were banned.
2. Common Industries That Get Flagged
Here’s a breakdown of what these processors typically consider high-risk:
| Industry | Stripe | PayPal | Square |
|---|---|---|---|
| CBD | ❌ | ❌ | ✅* (via Square’s separate CBD program, limited use) |
| Functional Mushrooms | ❌ | ❌ | ❌ |
| Adult Content | ❌ | ❌ | ❌ |
| Nootropics | ❌ | ❌ | ❌ |
| Tarot & Astrology | ❌ | ✅ (gray area) | ❌ (“occult materials”) |
| Research Chemicals (SARMs, Peptides) | ❌ | ❌ | ❌ |
| Coaching / Biz Opp | ❌ | ❌ | ❌ |
| MLM / Direct Sales | ❌ | ❌ | ❌ |
| e-Cigs / Vapes | ❌ | ❌ | ❌ |
Even if you’re operating legally under state or federal rules, these platforms often use bank-level restrictions that don’t match current legal realities.
3. What Happens When You Get Banned
The process usually follows this pattern:
- Your account is flagged by automated risk tools.
- You’re placed under review with limited processing functionality.
- New orders fail, and customer payments get declined.
- Your account is shut down without warning.
- Funds are frozen for 90–180 days.
This doesn’t just hurt your revenue. It damages your brand, your customer trust, and your ability to operate online. If you’re using Shopify, you may be forced to disconnect your checkout entirely.
4. How to Know if You’re on the Edge
Here are red flags that you might be one trigger away from a shutdown:
- You’ve seen more than 1% chargebacks in a 60-day window
- You’re selling supplements with health claims
- Your store lists “hemp” or “CBD” even if it’s in a topical or cosmetic form
- You’re using recurring billing with unclear cancellation policies
- You received a vague compliance warning from your processor
If any of these apply, it’s time to back up your transaction history and look at alternative options before you’re locked out.
5. Real-World Bans: Merchant Case Studies
Case 1: Functional Supplement Brand on Shopify
An adaptogen supplement company processed payments through Shopify Payments for 8 months before a sudden account shutdown. Their product pages included claims like “boosts focus” and “mood support.” Stripe flagged these as unapproved medical claims and disabled their checkout.
Case 2: Astrology Membership Site
This business ran a recurring subscription through PayPal for tarot-based coaching and astrology reports. A spike in refunds and a single keyword complaint led to a permanent ban. Funds were held for 180 days.
Case 3: CBD Topical Brand Selling on WooCommerce
Despite having COAs and no ingestible products, their mention of “CBD” in SEO meta titles was enough for PayPal to auto-ban the merchant. They were not given a path to appeal.
6. Why You Can’t Rely on Shopify Payments
Shopify Payments is powered by Stripe. That means even if Shopify allows your product, your payment processing is still subject to Stripe’s underwriting rules.
This is where most merchants get confused: Shopify says “yes” but Stripe says “no.”
You must use a third-party gateway if you sell:
- CBD or hemp-derived goods
- Functional or gray-area supplements
- Any regulated substance (including non-ingestibles)
And the moment your store is flagged? Shopify Payments stops working, your orders stop processing, and your revenue drops to zero overnight.
7. What to Look for in a High-Risk Merchant Account
Not all high-risk processors are created equal. Some charge 6–10% fees and still shut you down.
Look for these features:
- Transparent, flat-rate pricing (no junk fees)
- Proper underwriting—so you don’t get randomly flagged
- Integrations with Shopify, WooCommerce, ClickFunnels, etc.
- Chargeback support and fraud tools
- Fast setup (under 1 week)
Avoid “middleman” resellers and opt for providers that offer real merchant accounts with bank-grade security.
8. The InclusivePay Approach: Built for Brands Like Yours
Since 2018, InclusivePay has helped thousands of high-risk businesses process payments safely and scale without fear.
We specialize in industries that traditional platforms reject:
- CBD and hemp
- Adult content and services
- Functional mushrooms
- SARMs, peptides, and research-only compounds
- Lightworker brands (astrology, tarot, crystal healers)
- Subscription boxes and continuity offers
Our difference:
- Underwriting happens upfront—so you don’t get pulled later
- Integration is seamless with major platforms
- Our team has run these kinds of businesses—we know what gets flagged
We’re not a reseller. We’re an operator-backed solution built for brands that color outside the lines.
9. Frequently Asked Questions
Q: If I’ve already been banned, can I still get approved elsewhere?
Yes. We work with merchants who’ve been banned by Stripe, PayPal, and Square. Your past shutdown won’t disqualify you.
Q: Can I still use Shopify or WooCommerce with InclusivePay?
Yes. We integrate with both platforms using authorized gateways that support high-risk processing.
Q: How long does it take to get approved?
Typical approvals take 2–7 business days once we have your full application and documents.
Q: Are there setup fees?
No. Setup is free. You only pay a transaction fee once you’re live.
Q: Do you support international merchants?
Currently, we support U.S.-based businesses. International approvals may be possible depending on volume and risk category.
10. Final Word: Don’t Wait to Get Cut Off
If you’re in a gray-zone category, you’re already on borrowed time with Stripe, PayPal, or Square. One chargeback, keyword flag, or algorithm update could freeze your entire checkout.
The smarter play is to move early, protect your cash flow, and work with a processor who’s built for what you actually sell.
Click here to talk to the team at InclusivePay.
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Do you have a minimum monthly volume in order to approve ? We will be at $5-8k/month first 6 months . 10-12 there after .
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