US-Based Merchant Account Restrictions

Certain business types are restricted from establishingcard transaction processing account, regardless of
US-based small business merchant accounts. Theexception:
decision on who exactly is to be included in this "black- Any merchant engaged in Illegal activity.
List" is made by the Credit Card Associations of Visa- Adult oriented products or services (all media types:
and MasterCard and is mandatory for all credit cardinternet, telephone, printed material etc.).
processing companies which are also their members.- Internet/MOTO pharmacies (where fulfillment of
What this means is that no US credit card merchantmedication is performed with an Internet or telephone
processor is allowed to acquire transactions fromconsultation, absent a physical visit with a physician).
blacklisted entities.- Re-importation of pharmaceuticals from foreign
The biggest factor in determining whether a particularcountries.
type of business should be prohibited from setting up a- Internet/MOTO firearm or weapons sales (including
US-based credit card payment processing service isammunition).
the chargeback generation potential. In some industries,- Internet/MOTO cigarette tobacco sales.
historical data show that it is simply unacceptably high.- Occult materials.
It should be noted that, even when a merchant- Online gambling.
account processing service is established, chargeback- Lotteries, raffles, gambling.
levels are still closely monitored and, if they exceed 1%- Escort services.
of the total volume for three consecutive months, you- Collection agencies engaged in the collection of
will lose your credit card processing account.uncollectible debt, as defined by the Associations.
Applications from merchants engaged in the following- Credit repair agencies.
activities will not be considered for US-based credit- Sports forecasting or odds making.