What to Use If Stripe Bans You: A Complete Guide

Think of your payment processor like a doctor. A platform like Stripe is a general practitioner—great for common, everyday needs. But if you have a specific, complex condition, you need a specialist. For businesses in high-risk industries, a mainstream processor is often the wrong fit. Their systems aren’t designed to handle the unique challenges of sectors like travel, CBD, or subscription boxes, leading to sudden account closures. When this happens, you’re left wondering what to use if Stripe bans you. The answer isn’t to find another generalist; it’s to find a specialist who understands your industry’s nuances. This guide will show you how to find that specialized partner and build a payment system that supports your business for the long haul.

Key Takeaways

Understand Why You Were Banned: A Stripe ban isn’t random; it’s typically due to your business model being labeled high-risk, excessive chargebacks, or a policy violation. Identifying the root cause is the first step to finding a payment processor that actually fits your business needs.
Switch to a High-Risk Specialist: Don’t just find another generic processor. The most stable solution is to partner with a provider that specializes in high-risk industries, as they have the right infrastructure and risk tolerance to support your business long-term and prevent another sudden account closure.
Create a Payment Safety Net: Never depend on a single processor again. Build a resilient system by having a backup processor ready, offering alternative payment methods, and actively monitoring your account health to keep chargeback rates low.

Why Did Stripe Ban Your Account?

Getting that “your account has been suspended” email from Stripe can be a shock. It often feels like it comes out of nowhere, leaving you scrambling to figure out what went wrong and how to keep your business running. While the notice might seem vague, account bans usually happen for specific reasons tied to risk and policy violations. Stripe is designed to serve a wide range of businesses, but its risk tolerance is relatively low, especially compared to processors that specialize in certain industries.

Understanding the “why” behind the ban is your first step toward finding a stable, long-term solution. It’s not always about something you did wrong intentionally. Sometimes, it’s simply a mismatch between your business model and what a mainstream processor like Stripe is built to support. Let’s walk through the most common reasons for an account suspension so you can identify the likely cause and find a payment partner who truly understands your business needs.

Common Reasons for Suspension

Sometimes, a ban isn’t related to your industry but to specific activities on your account that raise red flags. A sudden, massive increase in sales volume can look suspicious to an automated system, even if it’s just the result of a successful marketing campaign. Other common triggers include changing key account details like ownership, having unclear refund or terms of service policies on your website, or discrepancies between the business information on your site and what you provided to Stripe. Even having issues with a separate Stripe account you own can impact your current one. Reviewing these operational details can often shed light on why your account was flagged.

Operating in a High-Risk Industry

If you operate in an industry that traditional payment processors consider high-risk, you might face a ban even if your business is completely legitimate and compliant. High-risk businesses are those in sectors with a greater potential for chargebacks, fraud, or regulatory scrutiny. This includes industries like CBD, supplements, subscription boxes, travel, and digital goods. Mainstream processors like Stripe often avoid these categories altogether to minimize their own financial risk. The frustrating part is that you may have been able to process payments for a while before the system eventually flagged your business type, leading to a sudden shutdown.

Violating Policies or Compliance Rules

Every payment processor has a list of prohibited business types and practices, and violating these is a fast track to getting banned. Stripe has a clear list of restricted businesses that it will not support. This includes obvious categories like illegal products but also extends to many legal but highly regulated industries such as gambling, adult content, certain financial services, and telemarketing. It’s crucial to read and understand the terms of service for any payment processor you work with. An unintentional violation is still a violation, and it can lead to your account being closed without much warning.

What Are Chargeback Thresholds?

A chargeback happens when a customer disputes a transaction with their bank, forcing a refund. While some chargebacks are inevitable, a high rate signals to processors that there might be a problem with your products, customer service, or business practices. Most processors, including Stripe, have a chargeback threshold, which is typically around 1% of your total transactions. If your chargeback rate creeps above this number, your account is likely to be flagged for review and may be suspended or terminated. This is one of the most critical metrics to monitor, as it directly reflects the health and risk level of your merchant account.

Your First Steps After a Ban

Getting that “account closed” email is jarring. When your revenue stream is cut off, it’s easy to panic, but a clear plan is your best way forward. Your business isn’t over; this is just a hurdle. The immediate actions you take can make a huge difference in how quickly you get back to processing payments. Let’s walk through the first four things you need to do to regain control.

Review the Ban Notice

First, find the email from Stripe and read it carefully. It should explain why your account was flagged, which is your starting point. Look for the specific policy you supposedly violated and any required next steps. Understanding their reasoning is critical, whether you plan to appeal or find a new processor. Knowing the “why” gives you the power to address the problem head-on.

Secure Your Customer Data

Your customers are your top priority. If your account won’t be reopened quickly, protect those relationships. Communicate with your customers about the payment processing issue—transparency builds trust. If you have a backup payment method, let them know they can use it. It’s also crucial to have access to your customer data outside of Stripe. This information is vital for migrating to a new system without losing history.

How to Appeal the Decision

If you believe the ban was a mistake, you can appeal. To do this, you’ll need to contact Stripe’s support team directly. When you reach out, be professional, calm, and clear. Explain your situation and provide any supporting evidence. While an appeal isn’t always successful, especially for high-risk businesses, it’s a step worth taking if your account was closed in error. A well-reasoned explanation can sometimes get your case reviewed.

Document Everything

Whether you’re appealing or moving on, documentation is your best friend. Gather all relevant information about your business and Stripe account history: business type, location, transaction volume, and chargeback rates. Be prepared to explain why Stripe shut you down, as new processors will ask. Having a clear, honest summary ready will make the application process much smoother. This preparation is key to finding a new, more stable payment solution.

Finding Your Next Payment Processor

After a ban, finding a new payment processor can feel overwhelming, but it’s also an opportunity to find a partner that truly understands your business. The key is to move away from one-size-fits-all platforms and find a provider equipped to handle the specific needs of your industry. Instead of just looking for a quick replacement, think of this as a strategic move to build a more resilient payment infrastructure for the long term. Your goal is to find a processor that not only accepts your business but also provides the tools and support to help you grow securely. This means looking beyond the big names and exploring solutions designed for businesses just like yours.

Specialized Processors like Borderfree Payments

This is where specialized processors come in. Unlike traditional platforms that serve a broad market, specialized providers focus on industries that are often considered high-risk. They build their entire business model around supporting merchants who need more than just basic transaction processing. Because they understand the nuances of your industry, they offer higher acceptance rates and provide sophisticated risk management tools to protect your revenue. A partner like Borderfree Payments offers solutions tailored to your specific challenges, ensuring you get approved and stay approved. They provide the stability and expertise that high-risk businesses need to operate without fear of sudden account closures.

Traditional Payment Processors

It’s helpful to understand why traditional processors often aren’t a good fit for high-risk businesses. Platforms like Stripe and PayPal are designed for low-risk, high-volume markets. Their automated systems and strict risk policies often flag businesses in sectors with a higher likelihood of chargebacks or regulatory scrutiny. These high-risk industries include businesses like subscription services, travel, and digital goods. While these platforms are excellent for many businesses, their rigid structure makes them an unstable choice if your operations fall outside their narrow definition of “safe.” This is likely why you were banned in the first place.

Digital Wallets

While digital wallets like Apple Pay and Google Pay are fantastic for creating a smooth checkout experience for your customers, they aren’t a standalone solution to a processor ban. Digital wallets are a payment method, not a payment processor. They still need to be connected to a merchant account and a processor to actually move money from your customer to your bank account. When you’re searching for your new processor, make sure they support popular online payment processing services and digital wallets. Offering them is a great way to improve conversion rates, but you first need a solid processing partner on the back end.

How to Choose the Right Payment Solution

After a sudden ban, the pressure is on to find a new payment processor quickly. But rushing this decision can land you in the same situation all over again. Your goal isn’t just to find a replacement; it’s to find a long-term partner that understands and supports your business model. This means taking a step back and carefully evaluating your options based on a few key criteria.

Think of this as an opportunity to build a more resilient payment system for your business. The right solution won’t just process transactions—it will provide the stability you need to grow without constantly looking over your shoulder. You’re looking for a provider that is transparent about its policies, offers features that protect your revenue, and is equipped to handle the specific needs of your industry. This involves looking beyond just the transaction fees and considering factors like integration, security, and global reach. A thorough evaluation now prevents future disruptions and helps you find a processor that truly has your back, allowing you to focus on what you do best: running your business.

Check for Industry Compatibility

This is the most critical step, especially if you operate in a high-risk industry. Many standard processors, like Stripe, have strict policies against certain business types. A provider might approve you initially, only to shut you down weeks later during a routine review. You need a partner that explicitly welcomes your business.

When vetting a new processor, be upfront about what you sell. Look for providers that specialize in high-risk payment processing and list your industry on their website. These companies have the infrastructure and risk tolerance built to support businesses like yours, which means you won’t have to worry about another unexpected account closure for the same reason.

Compare Fees and Pricing

Transaction fees can significantly impact your bottom line, so it’s essential to understand the full cost of a payment solution. While high-risk processing often comes with higher rates, the pricing structure should be transparent and predictable. Don’t just look at the percentage per transaction; ask for a complete fee schedule.

Look for hidden costs like setup fees, monthly minimums, and chargeback fees. Some providers offer interchange-plus pricing, which can be more transparent than a flat rate. The key is to shop around for cost-effective solutions that don’t surprise you with unexpected charges. A good partner will be clear about their pricing so you can accurately forecast your expenses.

Verify Geographic Coverage

If you sell to customers around the world, your payment processor needs to be able to handle international transactions seamlessly. Before committing to a provider, confirm that they support payments from all the regions you serve. Limited geographic coverage can lead to lost sales and frustrated customers who can’t complete a purchase.

Ensure the processor can handle multiple currencies and provides clear settlement reports for international sales. Specialized providers like Borderfree Payments are built to ensure businesses can accept payments without interruption across various regions. This global capability is crucial for scaling your business and reaching a wider audience without payment-related roadblocks.

Assess Technical Integration

Switching processors involves more than just signing a contract; you have to integrate the new system with your website and existing software. A complicated integration process can lead to costly downtime. Look for a provider that makes this transition as smooth as possible.

Review their API documentation for clarity and check if they offer pre-built plugins for your ecommerce platform, like Shopify or WooCommerce. A provider with robust developer tools and responsive technical support can make a huge difference. The easier it is to integrate key features, the faster you can get back to accepting payments and running your business.

Review Security and Compliance

Security is non-negotiable. As a high-risk business, you are often a prime target for fraud, so your payment processor must have advanced security measures in place. This includes PCI DSS compliance, tokenization, and robust fraud detection tools that can help you screen for suspicious transactions.

Securing a reliable high-risk merchant account means partnering with a processor that prioritizes your security and helps you stay compliant. Ask potential providers about their fraud prevention systems and how they help you manage chargebacks. A secure and compliant partner protects your revenue, your customers’ data, and your business’s reputation.

What to Expect When Switching Processors

Switching to a new payment processor is a big move, but it’s completely manageable with a clear plan. Breaking the process down into smaller steps will help you transition smoothly without disrupting your business. Here’s what to focus on.

Plan Your Migration

Your first step is to create a migration plan. Map out a timeline with key milestones, from setup to launch, and assign clear responsibilities to your team. You’ll also need a strategy for handling recurring subscriptions and saved customer payment details. A well-documented project plan acts as your roadmap, ensuring everyone is aligned and no critical steps are missed. This proactive approach prevents last-minute scrambling and keeps the transition on track.

Create a Communication Plan

How you communicate this change is key to maintaining customer trust. Be proactive and transparent. Draft clear messages explaining that you’re updating your payment system for a better experience—no need to detail the ban. Inform customers of any actions they need to take, like updating their payment info, via email and a notice on your website. A thoughtful communication strategy helps manage expectations and shows customers you value their business.

Integrate and Test the New System

Now for the technical part. Work with your development team to integrate the new payment gateway into your website, using the documentation and support from your new processor. Before going live, thorough testing is non-negotiable. Use a sandbox environment to run multiple test transactions, checking for successful payments, declines, and refunds. This step is crucial for catching bugs early and ensuring a seamless checkout experience for your customers from day one.

Prepare for Launch

You’re almost there. Before flipping the switch, run through a final launch checklist. Make sure your customer support team is trained on the new system and knows how to handle common questions. Update any internal documentation related to payments. It’s also smart to schedule the launch during a low-traffic period to minimize potential impact. On launch day, monitor transactions closely to address any unexpected issues immediately. Being prepared makes the transition feel like a planned upgrade.

How to Prevent Future Payment Issues

Once you’ve found a new payment processor, the last thing you want is to go through this process again. Getting your account shut down is a major disruption, but it’s also a chance to build a more resilient payment system for your business. By being proactive, you can protect your revenue streams and maintain a healthy relationship with your new payment partner. It all comes down to managing risk, communicating clearly with your customers, and staying on top of your account health. Let’s walk through the key steps you can take to prevent future payment issues and keep your business running smoothly.

Develop a Risk Management Strategy

If you’re in a high-risk industry, you can’t approach payments the same way a low-risk ecommerce store would. Your business has specific needs, and your risk management strategy should reflect that. This starts with choosing a processor that understands your industry, but it also involves your internal processes. A solid strategy means you’re actively working to minimize the risks your processor sees. This includes everything from how you verify customers to how you handle disputes. Think of it as a partnership—when you show your processor you’re serious about managing risk, they’re more likely to see you as a reliable, long-term client. A specialized payment gateway is often the first and most important part of this strategy.

Implement Chargeback Prevention Tactics

Chargebacks are a major red flag for payment processors and a primary reason accounts get suspended. A chargeback happens when a customer disputes a charge with their bank instead of contacting you for a refund. While some are due to legitimate fraud, many are cases of “friendly fraud,” where a customer doesn’t recognize a charge or has buyer’s remorse. Your goal should be to keep your chargeback rate below 1%. You can do this by using clear billing descriptors (so customers recognize the charge on their statement), providing excellent customer service, and making your refund process easy. Proactive communication can often resolve an issue before it becomes a costly chargeback.

Set Up Transaction Monitoring

Payment processors use automated systems to monitor for suspicious activity, like a sudden spike in transactions or payments from unusual locations. You should be doing the same. Regularly review your own transaction data to spot patterns that could signal fraud or other issues. Setting up your own monitoring allows you to catch potential problems before your processor does. For example, if you see an unusual number of failed transactions from one IP address, you can block it. This proactive approach shows your payment partner that you’re actively working to secure your account and protect against fraud, which builds trust and reduces your overall risk profile.

Create a Clear Refund Policy

Ambiguity is your enemy when it comes to customer trust and payment processing. A confusing or hard-to-find refund policy is a common cause of customer disputes that can quickly turn into chargebacks. Your refund, shipping, and terms of service policies should be written in plain language and be easily accessible from every page of your website, especially during checkout. Make sure customers know exactly what to expect if they’re unhappy with a purchase. A transparent and fair refund policy not only reduces chargebacks but also helps build customer confidence, which can lead to more sales in the long run.

Keep Your Business Information Updated

This might seem small, but it’s incredibly important. Payment processors need to know that the information they have on file for your business is accurate and current. If you move, change your business name, or update your contact information, make sure you update your payment processor account immediately. Outdated information can be a red flag for compliance teams, as it can suggest that the business is no longer active or is trying to hide something. Keeping your details current is a simple way to maintain a good standing with your processor and ensure there are no interruptions in communication or your ability to get paid.

How to Build a Resilient Payment System

After dealing with a payment processor ban, your top priority should be preventing it from happening again. A resilient payment system isn’t just about finding a new processor; it’s about creating a setup that can withstand unexpected shocks. Think of it as building an infrastructure that protects your revenue and keeps your business running, no matter what happens with a single provider. This means being proactive, diversifying your options, and having a clear plan for when things go wrong.

Work with Multiple Processors

Relying on a single payment processor is a huge risk, especially in a high-risk industry. The best way to protect your business is to work with more than one. This doesn’t mean you have to split your transactions 50/50, but you should have a fully onboarded and active backup processor ready to go at a moment’s notice. If your primary account is suddenly frozen or shut down, you can redirect your transactions to the backup without interrupting sales. This approach ensures your business can keep accepting payments and gives you a safety net against sudden policy changes or account holds from one provider.

Monitor Your Accounts Regularly

Stay on top of your payment processing accounts. Regularly check your transaction reports, chargeback rates, and any communications from your processor. High chargeback rates are a major red flag for processors and can trigger an account review or suspension. Keep an eye on your metrics and aim to stay well below the industry thresholds. Also, make sure all your business information is current. If you change your business address, update your product line, or make any other significant changes, inform your processor immediately. Outdated information can lead to compliance issues and put your account at risk.

Use a Customer Verification System

Many account issues stem from chargebacks, which can be caused by true fraud, customer confusion, or “friendly fraud.” Implementing a robust customer verification system can significantly reduce these disputes. Use tools like Address Verification Service (AVS) and CVV checks to confirm that the person making the purchase is the cardholder. For high-risk industries, consider adding more advanced fraud prevention tools that analyze transaction patterns and flag suspicious activity. Clear communication, accurate billing descriptors, and timely delivery of products or services also play a huge role in preventing misunderstandings that lead to chargebacks.

Have an Emergency Plan

Don’t wait for a crisis to figure out what to do. Create a clear, step-by-step emergency plan for payment processing disruptions. This plan should outline exactly who to contact and what actions to take if an account is frozen or banned. Your first step should always be to contact the processor to understand the reason for the action. Your plan should also include a template for communicating with your customers about potential payment issues. Having a pre-written response ready helps you manage the situation professionally and maintain customer trust, even when things are stressful behind the scenes.

Plan for Business Continuity

A resilient payment system is a key part of your overall business continuity plan. If your primary processor freezes your account, they may hold your funds for 90 days or more while they investigate. Can your business survive without that cash flow? Your continuity plan should account for this possibility. It’s also a good time to review your business model. If you consistently have trouble getting approved by payment processors, even high-risk specialists, it might signal an underlying issue with your products, marketing, or fulfillment that needs to be addressed to ensure long-term stability.

Adding Alternative Payment Methods

After a ban, your first instinct might be to find a single, direct replacement for Stripe. But this is the perfect moment to think bigger and build a more resilient payment system. Diversifying your payment options is one of the smartest moves you can make. It’s not just about having a backup; it’s about meeting your customers where they are and giving them more ways to say “yes” to a purchase.

Offering a variety of payment methods can reduce friction at checkout, cater to international buyers, and capture sales you might have otherwise lost. For a high-risk business, this flexibility is crucial. It shows stability and customer-centricity, even when you’re navigating a challenging situation behind the scenes. Instead of relying on one channel, you create a multi-lane highway for your revenue, making your business far less vulnerable to a single point of failure. Think of it as your financial safety net—the more threads it has, the stronger it is. This approach also helps rebuild trust with your audience. When they see multiple, reputable payment options on your site, it signals that you’re a legitimate and stable operation, which is especially important when recovering from a service disruption.

Integrate Digital Wallets

A great first step is to integrate popular digital wallets like PayPal, Apple Pay, or Google Pay. Customers know and trust these brands, and the checkout process is often faster than manually entering credit card details. This convenience can directly lead to higher conversion rates. For you, the business owner, setting up a simple payment gateway with a service like PayPal can be a quick way to start accepting payments again while you secure a more permanent merchant account. Digital wallets can act as a bridge, keeping your cash flow moving during a transition period and remaining a valuable payment option for your customers long-term.

Offer Cryptocurrency Options

For many high-risk businesses, cryptocurrency isn’t just a trend—it’s a strategic advantage. Accepting digital currencies like Bitcoin or Ethereum can open your business to a global audience and solve some of the biggest headaches in high-risk payment processing. Crypto transactions are secure, often have lower fees, and, most importantly, are not subject to the same chargeback risks as credit cards. If you’re in an industry like iGaming, collectibles, or other verticals often flagged by traditional banks, offering crypto can be a game-changer. This requires a specialized payment gateway that understands the nuances of both your industry and digital assets, ensuring you can accept these payments safely and efficiently.

Provide Bank Transfer Solutions

Don’t overlook the power of direct bank transfers, such as ACH payments. While not as instantaneous as a card payment, they are incredibly reliable and secure, especially for high-value transactions, B2B sales, or subscription models. The risk of chargebacks is virtually nonexistent, and transaction fees are typically much lower than credit card processing rates. For a business that has been labeled “too risky” by mainstream processors, the stability of bank transfers is a significant asset. A high-risk payment processor can help you integrate this option smoothly, making it a seamless choice for customers who prefer to pay directly from their bank accounts.

Set Up Payment Plans

Making your products or services more affordable can significantly widen your customer base. Offering payment plans or “Buy Now, Pay Later” (BNPL) options breaks down larger costs into manageable installments, reducing hesitation for buyers on a budget. This is more than a payment method; it’s a powerful sales tool. Implementing this requires a robust system to manage recurring billing, which can be one of the unique challenges of running a high-risk business. Partnering with a provider that offers reliable high-risk merchant accounts is key. They can provide the infrastructure to handle these complex billing schedules, ensuring you get paid on time while offering your customers valuable flexibility.

Frequently Asked Questions

Can I just open a new Stripe account using different information? It’s tempting to try this as a quick fix, but it’s a risky move that almost always backfires. Payment processors have sophisticated systems to detect linked accounts and repeat applications. Attempting to get around a ban by using slightly different information is a violation of their terms of service. When they inevitably discover the new account, they will shut it down, too. This can make it even more difficult to get approved by a legitimate high-risk processor in the future, as it creates a negative history for your business.

My business isn’t on Stripe’s restricted list. Why was I still considered ‘high-risk’? Stripe’s restricted business list covers categories they won’t support under any circumstances, but it isn’t the only factor they consider. A business can be flagged as high-risk for other reasons related to its model or performance. For example, industries with a high average chargeback rate, businesses that use a subscription model, or accounts with sudden, dramatic spikes in sales volume can all be perceived as risky. The decision is often made by automated systems that weigh multiple factors beyond just the product you sell.

Stripe is holding my funds after the ban. When will I get my money back? This is one of the most stressful parts of an account closure. Processors typically hold funds for a period of time, often between 90 and 180 days, to cover any potential chargebacks that may arise after the account is closed. The exact timeline and process should be outlined in the closure notice you received from Stripe. While it’s frustrating, this is a standard industry practice to protect the processor from financial loss. Review your notice carefully for the specific details regarding your funds.

Will a specialized high-risk processor be a lot more expensive than Stripe? High-risk processors often have higher transaction fees than standard platforms like Stripe, and it’s important to be prepared for that. This isn’t because they’re trying to gouge you; it’s because they are taking on a greater level of financial risk by supporting your business. Think of the higher rate as an investment in stability. You’re paying for a partner who understands your industry, provides tools to manage risk, and won’t suddenly shut you down. The cost of a stable, reliable processor is almost always lower than the cost of a sudden business interruption.

How quickly can I get set up with a new high-risk processor? Unlike the nearly instant approval from platforms like Stripe, getting set up with a high-risk specialist takes a bit more time. These providers perform a more thorough underwriting process to understand your business and its risks. The timeline can range from a few business days to a couple of weeks, depending on the provider and the complexity of your business. The best way to speed up the process is to have all your documentation ready to go, including your business information, processing history, and a clear explanation of why your previous account was closed.

What to Use If Stripe Bans You: A 7-Step Guide