What to Do When Stripe Shuts Down Your Merchant Account
What to Do When Stripe Shuts Down Your Merchant Account
If your Stripe account was suddenly frozen, terminated, or your funds are being held, you’re not alone. Stripe is known for instant shutdowns across high-risk industries. This guide explains why Stripe closes accounts, what it means to be blacklisted, and how to recover fast with a compliant merchant account through High Wire Payments.
Why Stripe Freezes or Terminates Merchant Accounts
Stripe’s automated risk systems often flag businesses that fall into high-risk categories. This includes merchants selling in restricted industries, operating internationally, or maintaining a higher chargeback ratio than Stripe’s internal limits allow.
Common reasons for termination include:
- Belonging to a regulated or “high-risk” industry (CBD, kratom, adult, gambling, tobacco, hemp, etc.)
- Frequent chargebacks or refund disputes
- Large transaction volumes without consistent processing history
- Cross-border or multi-currency sales
Stripe can terminate accounts without prior notice and hold funds for up to 90 days—or longer in high-risk cases.
What Is the MATCH List and How Does It Affect You?
The Member Alert to Control High-Risk (MATCH) list—formerly known as the Terminated Merchant File (TMF)—tracks businesses that have been terminated by a payment processor. If Stripe adds you to the MATCH list, other processors may automatically decline your application.
While removal is rare, specialized high-risk providers like High Wire Payments work with banks still willing to underwrite MATCH-listed merchants, helping you restore processing quickly.
Stripe’s Restricted Industries
Stripe bans dozens of categories. Even indirect association with these sectors can trigger an instant shutdown. Commonly restricted areas include:
- Adult products or services
- CBD, hemp, kratom, and cannabis-derived goods
- Supplements, nootropics, or mushrooms (Amanita, functional blends)
- High-ticket coaching, investment, or credit repair services
- Firearms, vape, or paraphernalia sales
Even if your products are legal, Stripe’s risk department operates globally and may flag based on keywords, domain content, or product metadata alone.
How to Know If Stripe Closed Your Account
Stripe notifies merchants via an automated email, often with a vague statement such as “your business no longer meets our terms of service.” You’ll be locked out of your dashboard and unable to access payouts. Stripe rarely reinstates terminated accounts—even after appeals.
If you received such notice, act immediately to safeguard your cash flow and avoid losing access to customer payments.
What to Do If Stripe Is Holding Your Funds
Stripe may retain funds for 60–180 days to cover potential chargebacks. You can contact their risk department, but responses are often automated. If funds are not released after the holding period, you may need to provide legal documentation or contact your state financial regulator.
During that time, High Wire Payments can onboard you with a compliant bank partner to resume sales and prevent further disruption.
Common Triggers for Stripe Termination
- Excessive chargebacks: Exceeding a 0.3% chargeback ratio can trigger a shutdown.
- Customer complaints: Multiple negative reviews or refund disputes increase perceived risk.
- Prohibited keywords: Terms like “cannabis,” “CBD,” or “psychedelic” can flag your checkout page.
- Linked domains: Stripe scans connected domains; even a related product on a sister site can lead to termination.
How to Start Accepting Payments After Stripe Closes Your Account
If Stripe declines or terminates your business, your next step is a high-risk merchant account. These accounts are underwritten manually by real banks—giving you stability, transparent interchange-plus pricing, and a team that won’t freeze funds overnight.
With High Wire Payments, you can:
- Accept credit cards, debit, and ACH for high-risk products
- Integrate with gateways like Authorize.net, NMI, and Shopify alternatives
- Receive dedicated chargeback management and compliance support
Always Have a Backup Processor
Even if your Stripe account is active, you should maintain a secondary payment option. Having a backup merchant account ensures continuity during outages, terminations, or gateway errors. Many established merchants split volume across processors for redundancy.
Don’t wait until Stripe closes your account—apply for a backup processor while you’re still active.