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When Square Drops Your High Risk Merchant Account

Published March 15, 2023

Updated December 20, 2024

2 min read
High Risk
When Square Drops Your High Risk Merchant Account

Introduction

Large merchant account providers like Square can unexpectedly drop or freeze your account, especially if your company requires a high risk merchant account. This can severely impact your ability to process payments online and hurt your sales. Finding a high-risk credit card processing company quickly becomes critical in such situations.

The Impact of Being Dropped by Square

When Square stops your ability to process payments:

  • Customers visiting your e-commerce site may be turned down when trying to purchase items, emphasizing the need for a reliable ecommerce merchant account.
  • Your sales can be severely affected
  • You need to find an alternative payment processor quickly

Square Credit Card Processing

Square is primarily useful for low-risk merchants, who:

  • Run online companies with consistent and non-regulated transactions
  • Have few chargebacks
  • Don't operate in risky verticals

In contrast, high-risk merchant account providers like PayKings customize accounts per business and vertical, understanding that each industry has its own unique challenges. Such as those faced by ecommerce merchant account providers.

Advantages of High-Risk Merchant Accounts

More lenient terms and conditions

Greater operational flexibility

A unique account that belongs to you (unlike Square)

A unique ID number that serves as a business bank account

An online interface or payment gateway for easy integration with your website

Finding the Best Payment Processor

When looking for a new payment processor after being dropped by Square:

Look for a company with experience in your business vertical

Seek providers with the necessary banking resources to onboard your company

Prioritize expeditiousness, as quick recovery is crucial

Look for alternatives immediately

Speak with agents who can quickly put together your bank package

Why You're Likely Classified as High-Risk

If a major account provider drops your account:

  • You'll likely be classified as high-risk
  • Other major providers (PayPal, Stripe) may not let you create a new account
  • Some may open your account instantly but drop it later

Choosing a Sustainable Solution

To avoid repeated issues:

Choose a well-established payment processor with industry experience

Look for processors who can help organize your business information quickly

Seek out companies with dedicated sales and underwriting teams

Conclusion

Being dropped by Square can be a significant setback, but it's not the end of the road. By understanding your high-risk status and seeking out specialized payment processors, you can find a sustainable solution that allows your business to continue operating smoothly. Remember to act quickly and choose a provider with experience in your specific industry for the best results.

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