When Shopify Drops Your High Risk Merchant Account
When an aggregate merchant account like Shopify kicks you off their platform or freezes your account, it can be confusing as to what to do next. We’re here to help.
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Why Was My High Risk Merchant Account Dropped?
There are several reasons that a provider like Shopify would drop or freeze high risk merchant accounts. First, if you are selling goods or services deemed high risk without using high risk merchant accounts or payment processors. Shopify has the authority to drop or freeze your account.
If you are a high risk merchant on Shopify, it is essential to follow all protocols regarding the regulations on selling your products. Often, high risk goods are highly regulated. This marks your business as a high risk to banks and providers like Shopify.
Understanding why your merchant account has been dropped is vital to ensure that it never happens again. Although Shopify is one of the most well-known providers, hundreds of other comparable providers exist.
Dedicated high risk merchant account providers have a range of industry specializations. So you’re sure to find the perfect fit while mitigating your risk of being dropped again.
Did Shopify Drop Your Merchant Account?
- Being dropped by a central platform like Shopify concerns business owners. However, you’re not alone.
- Our team of high risk merchant account experts has laid out exactly how to handle this type of situation – which happens more often than you’d think.
- Signature Payments can help take the guesswork out of what your next steps should be when applying for a high risk merchant account.
What is a Dedicated High Risk Merchant Account?
A dedicated high risk merchant account is an account where the business has its merchant ID. The critical difference between an aggregate account and a dedicated account is that the merchant is not sharing a high risk merchant account with several other companies.
Aggregate high risk accounts, like ones established through Shopify, use one merchant account for an entire portfolio. A business has far less control with an aggregate high risk merchant account with Shopify than with a dedicated high risk merchant account.
With a dedicated high risk merchant account, transactions between the merchant and the customer are deposited directly into the business bank account. With an aggregate high risk merchant account, the funds from a transaction are sent to the account provider, like Shopify, and then are deposited into the merchant’s bank account.
Shopify, the aggregate high risk merchant account provider, also makes its own rules and can make any changes they deem necessary without your consent.
Benefits of a High Risk Merchant Account
Establishing your merchant account with a provider that specializes in high risk accounts ensures the security of your business. Providers that specialize in high risk accounts are familiar with the territory and unique needs of a high risk business. By choosing a high risk provider, the result is better service and secure processing. Rest assured, knowing your online high risk business is safe with your dedicated merchant account.
There’s no need to worry about unexpected account closures that could put the well-being of your business at risk. Providers of dedicated high risk merchant accounts understand the unique industry needs. Account providers like Shopify cannot offer this expertise for high risk industries. High risk merchants are much better off choosing a provider with a predominantly high risk background.
Chances are, if you were dropped from one of the significant aggregate high risk merchant account providers, like Shopify, it is only a matter of time before being cut from other like providers. This means that your next step will be to apply for a high risk merchant account with a company that specializes in high risk merchant accounts and can assign you a specific merchant ID.
Reevaluating Your Business Needs
The proper merchant account allows your business to function properly and keeps your assets safe. If Shopify dropped your account, there is a chance that any assets remaining in your Shopify bank account could be frozen. Any frozen assets could remain frozen until a high risk merchant account is established and the proof is provided. Only then can frozen assets stuck in your Shopify bank account be released to your dedicated high risk merchant account.
Establishing A New Account
It is best to seek out a high risk merchant account and payment processor that specializes in high risk industries across the board. To maximize your provider benefits, look for a high-risk provider with an in-house underwriting team. An in-house underwriting team will help you and your business ensure you are presented in the absolute best ways possible before your application is sent to prospective banks.
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