What to Do When Your Merchant Account Has Been Closed

Mohammad W. Jahin

Mohammad W. Jahin

What To Do If Your Merchant Account Is Closed

A merchant account may be terminated after a 30-days notice or quite suddenly. This is a very unwelcoming development for any business because they lose the ability to make transactions. The good news is that this article aims to provide insights on how to deal with this issue.

Here are some of the reasons why a merchant account may be closed.

Suspicious Activity

Some activities may come off as suspicious, and this will get the payment processor worried. If a merchant has more than one account, this might seem suspicious. Also, suppose the merchant violates the terms and conditions signed and agreed. In that case, their account may be terminated due to their action.


Fraudulent activities can cause termination of a high risk merchant account. It may be misusing card information, failure to make deliveries, and deliberately providing unclear information. Some frauds are intentional, while others may be due to sheer misunderstanding.

Regulatory Changes

Banks may change their policy leading to termination of your high risk account. Maybe they have a lot of high risk clients, and they are trying to cut down the list. You may not fit the category of accounts they may like to keep.


Many high risk merchant accounts in the UK have been frozen or closed due to excessive chargebacks. A chargeback occurs when the credit card holder disputes the transaction after delivery of goods. The bank has to reimburse it, and the business experiences a loss. When these incidents become frequent, termination of the account follows.

Belonging To a High Risk Industry

There are some businesses categorized as high risk. Most banks see high risk businesses more like a burden than an avenue to make money. Cryptocurrencies, CBD, Casino, Adult Entertainment, and Pharmaceutical are all high risk businesses.

Here are several steps to take if your account was terminated.

  • Contact The Previous Acquire. As a high risk merchant, it is not enough to assume the reason for the termination. You need to go to the previous acquire to get a written statement on the motive for closure.
  • Check Whether You Are In a MATCH List. The MATCH list is for accounts that were previously terminated. The process of opening a new account is different from reopening a closed account. It is important to check if you are on the list to determine how the new acquire will open the new account.
  • Ensure To Have All Statements For at Least Several Months. Having your merchant statement for at least the last six months is reasonable. You tender it to your new acquire, and it corroborates your story. This shows transparency and compliance to the new collaboration.
  • Find a Provider Specialized In High Risk. If your Merchant account was terminated, find a payment processing company that deals specifically with high risk merchant accounts. PayFasto can be an ideal choice to prevent your merchant account from being terminated again.

At PayFasto, we are fully equipped to handle high risk businesses. We use instruments like 3D Secure and fraud prevention tools to fend off the termination of a high risk merchant account, and we are committed to see high risk merchants thriving.

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