Stripe’s banned industries include, adult, CBD, tobacco and more. If you operate in these industries you’ll want a high risk merchant account to process payments. If you’re considering Stripe and unsure if your business will qualify then it’s important to be aware of the platform’s policies regarding industries they don’t allow. In this article, we will delve into the world of Stripe’s banned industries , exploring the reasons behind these restrictions and the implications they have for businesses.

Stripe's Banned Industries Regulations

Stripe maintains a list of prohibited activities and industries that are not eligible for their payment processing services.

While the complete list of banned industries may evolve over time, some common examples of industries prohibited by Stripe include:

1. Illegal Activities: Stripe strictly prohibits any transactions related to illegal activities or products, including but not limited to drug paraphernalia, illegal substances, counterfeit goods, and illegal gambling operations. These restrictions align with legal frameworks and regulations across various jurisdictions.
2. High-Risk Businesses: Certain industries are considered high-risk due to legal and regulatory complexities, reputational concerns, or elevated levels of fraud. Examples include online gambling, adult entertainment, multi-level marketing schemes, and debt collection agencies. Stripe’s caution in these areas helps maintain the integrity of their platform and reduces potential liabilities.
3. Financial and Investment Services: Stripe has limitations on certain financial and investment services, including initial coin offerings (ICOs), pyramid schemes, and unauthorized money transmission services. These restrictions aim to protect customers from fraudulent financial activities and ensure compliance with financial regulations
4. Firearms and Weapons : Transactions involving firearms, ammunition, explosive materials, and other weapons are not permitted on the Stripe platform . These restrictions align with legal restrictions, ensuring the safety and security of Stripe’s user base.
5. Subscription Boxes: While subscription-based businesses are generally welcomed by Stripe, certain subscription box models may face restrictions due to compliance concerns. This includes subscription boxes related to tobacco, vaping, or alcohol products , where additional regulatory requirements and age verification measures come into play.

Stripe Dropping Your Merchant Account

If you get an instant approval from Stripe, and break these regulations then they will drop your account after they review it. In general, attempting to use Stripe’s payment services for prohibited activities can result in account suspension or termination, financial loss, and damage to a business’s reputation.

It is important for businesses to thoroughly review Stripe’s terms of service, acceptable use policy, and restricted business guidelines before integrating the payment gateway into their operations. By doing so, businesses can ensure compliance with Stripe’s policies and explore alternative payment solutions when necessary.

High Risk Payment Processing Stripe

In instances where a business operates within a banned industry or falls into a high-risk category, it may be necessary to seek alternative payment processing solutions for Stripe . Several specialized payment providers cater to industries that face restrictions on mainstream platforms like Stripe. These providers have a deep understanding of the unique requirements and challenges of these industries, offering tailored solutions while ensuring regulatory compliance.

When exploring alternative options, businesses should prioritize payment processors with strong security measures, robust fraud prevention tools, and a track record of serving businesses within their specific industry. Conducting thorough research and seeking recommendations from industry peers can help identify the most suitable payment processor for specific business needs.

Avoid Stripe’s Restricted List

Stripe’s commitment to compliance and risk mitigation is reflected in its policies regarding banned industries. By adhering to these restrictions, Stripe maintains a secure and trusted platform for businesses and customers alike.

Understanding the implications of these restrictions is crucial for businesses operating within or adjacent to the banned industries. By proactively seeking alternative payment solutions and maintaining compliance with legal and regulatory requirements, businesses can ensure seamless payment processing while safeguarding their reputation and mitigating potential risks.