As a business resource we would like to present a comprehensive universal prohibited merchant list used by traditional merchant processing companies and banks. The list is broken down into two parts; Prohibited Merchants, These Merchants are automatically declined upon submission, and Restricted Merchants, these are businesses that will be considered by underwriting if they meet the their criteria of compensating factors and will usually be subject to a probation period. At FintechMerchantAccounts.com we specialize in high risk merchant accounts working with both prohibited and restricted merchants. We do this by providing alternative solutions, and offshore banks. Feel free to contact us to discuss your needs in greater detail.
Prohibited Merchants/Industries
Traditional Merchant Accounts for the following types of Merchants:
Business Practices Promoting Racism, Violence, Abuse, Discrimination or Other Immoral
Activity
Illegal products/Activities of any Kind
Intellectual Property Rights Violators
Airlines
All Adult Entertainment, sexually oriented or pornographic merchants, including but not
limited to: Adult telephone conversations; Internet sex/porn; Adult pictures &
photos; Misc. adult entertainment (not elsewhere classified)
Collection Agencies
Credit Repair Services
Stolen property
Internet Tobacco Sales
Drug Paraphernalia
Escort or Dating Services
Gambling Establishments
Lottery Sales
Massage Parlors (unless licensed for physical therapy)
Multi-level Marketing
Time Share Sales
Bankruptcy Lawyers/Firms
Travel Agencies
Age Verification Services
Adult Videotext Merchants
Negative Option Billing
Outbound/Inbound Telemarketing
Internet Pharmaceutical Sales
Long Distance Services
Pre-paid legal advice/services
Cable box de-scramblers
Internet/Mail-Order designer/imitation handbags
Internet/Mail-Order watches
Male or Female Sexual Enhancement Supplements or Products
Pre-Paid Phone Cards
Internet Perfume Stores
Annual Billing with High Average Tickets
Matrix Merchants
Downloadable Software
Internet as Seen on TV Products
Knock off Athletic Shoes
Sunglasses
Medical Advice
Human Growth Hormones
Check cashing services
Counterfeit items, including but not limited to: Currency; Coins: stamps: Counterfeiting
equipment; Trademark infringement items
Investment opportunities
Pyramids/Ponzi Schemes
(Canada Only) Animals and Wildlife products classified as endangered or protected
(Canada Only) Business Opportunity (get-rich-quick schemes)
(Canada Only) Buying/shopping clubs
(Canada Only) Chain letters
(Canada Only) Credit card protection (including identity theft protection
(Canada Only) Cruise lines
(Canada Only) Extended warranty companies
(Canada Only) Flea Market/Kiosk Operators (defined as firms/individuals operating
from a booth, whether indoor or outdoor, on a part-time basis, with no lease or
telephone availability)
(Canada Only) Free gift, prize, sweepstakes or contest as an inducement to purchase a
product/service(Canada Only) Gaming, including horse and dog racing
(Canada Only) Hazardous and/or restricted materials
(Canada Only) Hair restoration
(Canada Only) Human parts and remains
(Canada Only) Investor clubs
(Canada Only) Products with unreasonable guarantees
(Canada Only) Pseudo-pharmaceuticals (anti-aging pills, sex nutrients, etc.)
(Canada Only) Sports forecasting or odds-making
(Canada Only) Third Party Payment Processors (Aggregators)
High Risk Merchants/Industries
The following Merchant types are historically prone to higher levels of chargeback and
fraudulent activity. These Merchants may represent high levels of financial risk /
liability. These Merchants will be subject to escalated UNDERWRITING procedures,
which may include a High-Risk Plan (SEE BELOW).
Answering Services
Diet Centers
Health Clubs
Internet Access Providers
Investment Opportunities
Liquidators
Motivational and Self-improvement Courses
Non-Retail Pawn Shops
Seminars
Tanning Salons
Vitamin/Herbal Supplement Sales
Water Purification
Non-Retail Jewelry
Electronics including Laptops and Computers
Cellular Phones and Pagers
Non-Retail Computer Hardware and/or Software sales.
Legal Advice and Kits
Auto Accessories/Tire Rims
Additional UNDERWRITING requirements for the High Risk Merchant Types may
include:
The latest business/financial statements
Detailed description of how the Merchant conducts business relative to deliveries,
deposits, sales procedures and return policy
Copies of printed sales material, print ads and electronic media
Personal guarantee of signatory with greater than or equal to 50% ownership in the
corporation
Copy of business license
Marketing Materials
Additional Business References