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High-Risk Payment Processors: Shopify Drops your High-Risk Merchant Account

Published February 4, 2019

Updated October 17, 2024

4 min read
High-Risk Payment Processors: Shopify Drops your High-Risk Merchant Account

What to Do When Shopify Payments Drops Your High-Risk Merchant Account

When Shopify Payments, an aggregate payment processor, terminates your account or freezes your funds, it can be a stressful and confusing experience. This guide will help you understand your next steps and how to recover quickly.

PayKings specializes in assisting businesses that have been dropped by aggregate payment processors like Shopify Payments. We're here to guide you through the process of securing a new high-risk merchant account and resuming high-risk payment processing to get your business back on track.

Understanding Why Shopify Payments Might Drop Your Account

While Shopify Payments is convenient for many businesses, it has strict policies for high-risk merchants. Accounts may be terminated for a variety of reasons, including:

  • High chargeback rates
  • Selling products or services deemed high-risk
  • Sudden spikes in transaction volume
  • Regulatory changes affecting your industry

It’s important to note that being dropped by Shopify Payments does not necessarily reflect poor business practices but rather its risk management policies. High-risk businesses are subject to tighter scrutiny under Shopify's platform policies.

Steps to Take After Being Dropped by Shopify Payments

  1. Don't panic: Being dropped by one processor doesn't mean you can't find another.
  2. Secure your funds: Ensure you have access to any funds in your account.
  3. Analyze the reason: Understanding why you were dropped can help prevent future issues.
  4. Look for a specialized provider: Seek out payment processors that cater to high-risk industries.

Prepare your documentation: Gather financial statements, processing history, and business details.

The Difference Between Aggregate and Dedicated High-Risk Merchant Accounts

Shopify Payments is an aggregate payment processor, meaning they use one large merchant account for multiple businesses. This approach allows for quick setup but also means stricter risk management.

A dedicated high-risk merchant account, on the other hand, is tailored specifically to your business. It offers:

  • Your own unique Merchant ID (MID)
  • More stability and control over your payment processing
  • Higher tolerance for the risks associated with your industry
  • Customized fraud prevention measures

Steps to Take After Being Dropped by Shopify Payments

Don't panic: Being dropped by one processor doesn't mean you can't find another.

Secure your funds: Ensure you have access to any funds in your account.

Analyze the reason: Understanding why you were dropped can help prevent future issues.

Look for a specialized provider: Seek out payment processors that cater to high-risk industries.

Prepare your documentation: Gather financial statements, processing history, and business details.

Finding the Right High-Risk Merchant Account Provider

Once Shopify Payments drops your account, finding the right provider for a high-risk payment gateway is crucial. Consider the following when selecting a payment processor:

  • Experience with high-risk industries
  • Relationships with multiple acquiring banks
  • In-house underwriting team
  • Transparent fee structures
  • Robust fraud prevention tools
  • Excellent customer support

At PayKings, we specialize in providing high-risk merchant accounts to businesses that have been dropped by aggregate processors like Shopify Payments. Our team understands the unique challenges faced by high-risk merchants and works diligently to find the right solution for your business.

The Application Process for a High-Risk Merchant Account

Applying for a high-risk merchant account is more involved than signing up with Shopify Payments, but the stability and tailored service make it worthwhile. The process typically involves:

  • Initial consultation – Understanding your business and its needs.
  • Application preparation – Submission of required financial and business documents.
  • Underwriting review – Banks review your application and processing history.
  • Account approval – Once approved, your high-risk merchant account is set up.

Integration – Seamless integration with your Shopify store or other e-commerce platforms.

Moving Forward After Shopify Payments

Being dropped by Shopify Payments can feel like a setback, but it's often an opportunity to secure a more suitable, stable payment processing solution for your business. With a dedicated high-risk merchant account, you'll have the tools and support needed to process payments securely and grow your business with confidence.

Contact PayKings today to learn how we can help your business recover and thrive after being dropped by Shopify Payments. Our team of experts is ready to guide you through the process of obtaining a high-risk merchant account tailored to your specific needs.

Key Takeaways

  • High-risk merchants are often dropped by Shopify Payments due to strict policies around transaction volume, chargebacks, or high-risk industry types.
  • Switching to a dedicated high-risk merchant account offers more stability, control, and a higher tolerance for risk factors specific to your high-risk business.
  • PayKings specializes in helping high-risk businesses secure the right payment processing solutions tailored to their unique needs.
  • By choosing a specialized provider like PayKings, your business will have access to robust fraud prevention, stable payment processing, and long-term growth opportunities.

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