Updated December 2024

When it comes to online payments with Shopify as a high-risk merchant, it's important to know that you'll need to work with third-party payment processors. That's because Shopify doesn't offer high-risk payment processing directly, but it does integrate with third-party companies that can provide you with the payment services you need. If you're a high-risk company, you require a custom high risk merchant account to accept payments for goods or services on Shopify.

The best Shopify high-risk merchant account provider offers low rates, fast integrations, and helpful customer support. They'll get you set up and process payments quickly. If you're just starting a new store or adding new items to an existing store, check the rules and regulations that go along with your account. Your current payment processor may not be able to work with your Shopify e-commerce store. If that's the case, you won't be able to process payments on Shopify when someone makes a purchase.

You might also consider working with payment aggregators. Although their straightforward sign-up process can seem like an easy way to find a payment processor for Shopify, there are some drawbacks to partnering with a payment aggregator. The primary issue is that many refuse to work with high-risk industries. Additionally, they often have a fee structure with graduated rates rather than being based on sales volume.

What To Do If Your Shopify Merchant Account Is Put on Hold?

If your Shopify merchant account is placed on hold, it can significantly disrupt your business operations. Follow these steps to resolve the issue and resume payment processing:

1. Review Shopify’s NotificationShopify typically sends an email explaining why your account is on hold. Carefully read the notification to understand the specific issue, whether it's related to chargebacks, policy violations, or required documentation.
2. Contact Shopify SupportReach out to Shopify’s support team for further clarification. Their assistance can provide insights into what is needed to resolve the hold, whether it’s additional documents or adjustments to your store’s operations.
3. Provide Required DocumentationIf Shopify requests specific documents—such as proof of business registration, inventory invoices, or identification—submit them promptly to demonstrate compliance.
4. Audit Your Store for ComplianceEnsure your store adheres to Shopify's terms of service. Remove any prohibited products, review refund policies, and ensure accurate product descriptions to avoid future issues. Unfortunately, if you fall under the high-risk Shopify merchants list, you'll need a different payment processor.
5. Consider Alternative Payment ProcessorsIf the issue persists or you face extended delays, explore high-risk payment processors like those offered by Zen Payments. These solutions are tailored for businesses in high-risk industries, ensuring smoother payment processing while maintaining compliance.

Taking these steps not only resolves the immediate issue but also minimizes the chances of future holds on your Shopify merchant account.

Shopify Terms and Conditions Prohibits Many High-Risk Merchants

Shopify has an extensive agreement regarding merchant account legalities. You can learn about the specifics of online payment processing on their Terms and Conditions Page. Moreover, they list Prohibited Businesses explicitly. These entail multiple industries, and the ones they mention are not exhaustive.

Why Is My Shopify Merchant Account Considered High Risk?

There are a number of reasons your merchant account can be considered high risk because payment processors worry about the liability they take on when working with you. These reasons include – higher levels of chargebacks, lower credit scores, and regulated industries.

Chargeback Rates – Your chargeback rate is determined by the number of chargebacks customers request from their bank. Most payment processors don't want to see your rates exceed 1% because it causes added work on their end. In addition, high chargeback rates affect your bottom line. When a chargeback occurs, the money is taken directly from your merchant account.

Refunds can also hurt your company and high refund rates are seen as a precursor to chargebacks. If you notice many people returning your products, be sure to create a process where you can monitor what's causing those issues and prevent them from occurring.

Credit Scores – If you have a low credit score and want to start a business, you may face higher reserve rates on your account. This is because your merchant account provider wants to hedge risk when it comes to opening an account for your business operation. On the plus side, many providers will give you the processing solution you need if your credit score is within a reasonable range.

Regulated Industries – As mentioned above there is a long list of regulated industries such as CBD , Adult, Firearms and more. A good rule of thumb is that if you sell products that have an age requirement or could be considered harmful to consumers, you are probably in a high-risk industry and need a cbd merchant account from an established provider.

Typically, if you run a high-risk business, you'll need a credit repair merchant account to accept online payments. High-risk merchant accounts are available through third party payment processors if you want to remain on Shopify, or separate from Shopify altogether.

Shopify Payments Prohibited Businesses Include:

Shopify considers high-risk businesses 'prohibited.' The various high-risk industries they don't work with include:

• Monetary Services
• Law Firms
• Cryptocurrency
• Credit Services
• Adult Content
• Branded Goods without Proper Sales Licenses
• Gambling
• Gaming and Video Game Betting
• Casino
• Regulated Products
• Nutraceuticals
• Social Media Follows
• Drug or Medical Items
• Get Rich Quick
• Ponzi Schemes
• Pyramid Schemes
• Mugshot publication

If you have an online business, Shopify Payments could be a good option, but only if you meet certain conditions. Shopify Payments is exclusively a low-risk payment processor. This means they only work with select types of businesses. High-risk businesses have to seek out a third-party payment processor in order to accept credit card payments. Depending on the industry you're in, there are different qualifications you have to meet to apply for a merchant account.

For example, if Shopify drops your payment processing because you have an adult site, you'll have to contact a payment processor who works directly with that vertical. There are many kinds of adult sites, from streaming and video to books and toys, and every business type has its own MCC code and regulations.

How To Setup High-Risk Payment Gateways On Shopify

A high-risk gateway on Shopify is a tool that connects directly to your merchant account and will allow you to process Shopify payments. To set it up, you'll have to find a gateway company that integrates within your store. The good news is that many times your high-risk account provider already has one that they can help you set up.

Once you find one, the payment gateway setup process is as simple as uploading code to your Shopify page. Depending on the gateway, some code works better than others. If you have any installation issues, be sure to contact support. Often, they have teams dedicated to the tech side of their payment products.

Once you've completed the setup process, you'll be ready to start accepting payments. Find a high-risk payment provider with excellent customer service to get up and running smoothly.

Work With Zen Payments as Your High-Risk Payment Service Provider For Shopify

Not all high-risk payment processors are created equal. Zen Payments is the best option if you are a high-risk company and need a third-party payment processing company to process payments on Shopify. We create custom business solutions that fit your business model. We'll help you with everything from Shopify payments to setting up a high-risk payment gateway and payment processing. We also offer ACH payments and various payment methods to ensure we meet your company's needs.

Start a High-Risk Account for Shopify Payments

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