Is Your Business Restricted From Using Stripe? Here’s How To Find Out

A quality payment processor is necessary for every business to run. Stripe is one of the most popular and the best option for new business. But unfortunately, CBD or cannabidiol merchants will experience restricting their stripe accounts.

Stripe is one payment service provider that several business owners can use to accept several payment methods, ranging from credit cards to buy now and pay later services with charges applicable for each transaction. CBD is a stripe high-risk business due to the psychoactive component called THC present in marijuana.

CBD is under the risk category due to the confusion between hemp and marijuana. CBD derived from hemp contains THC or tetrahydrocannabinol less than 0.3%. Whereas marijuana it has a THC of more than 0.3%. That made the CBD fall into a high-risk business, and it is not accepted by stripe.

What is a stripe?

Stripe is a payment processor which accepts online and credit card processing for business. If a buyer wants to purchase the product online, the seller must get the amount. Stripe promotes safe and effective processing of funds through the credit cards, and the bank, in turn, transfers the funds to the sellers’ or merchants’ accounts.

Stripe accepts both the payment processing and credit card processing gateway for online transactions. It is one of the simple software used for online payment.

Why is your merchant account frozen by stripe?

You will be a banned merchant if stripe closes your merchant account. Stripe will not process your payment if you are a forbidden merchant. The restriction applies to the business selling products or services based on the adult, gambling, cannabis, and other types of industries are risky.

The stripe may restrict you as a high-risk merchant due to providing digital products and services based on the deemed industry, which is highly risky and operates internationally or accepts payments from various countries.

Closure of your account without information

Stripe will terminate the merchant’s account without giving prior information or warning, and also, the fund held by Stripe will lead to a negative reputation among business persons. In some cases, the stripe will give a 30-day notice to make a red flag on your account. It is not sure that your account will remain open. That is due to the improper infrastructure to verify disputes of every business type.

How To Find Out Your Business Restricted From Using Stripe?

Free photos of Money

If a customer wants to buy a product, they can select it from the store. To pay for it, they will use a credit card. You will not allow this card for payment, and if the buyer doesn’t have money, they have to put the product back and leave it out. They will search for the gas station that will accept their credit card but their CBD products.

Your business will grow, and the number of customers will increase day by day. Suppose you accept the payment for the products using both credit card and cash. After a few days, you may receive the message that your merchant payment provider has rejected your business and they will not allow you to accept credit card payments.

Your CBD business is considered a high-risk business by payment provider stripe. It is not your mistake because of false disputes over CBD products. However, the products are legal, and they may provide health benefits and need age verification to buy the products.

Stripe payment processor will give information to the merchants about the termination of their accounts through an automated message. But it will not provide any particular explanation of why your account was closed. You cannot take any action to reclaim your business account, and it is impossible to find out why your account was suspended or reinstate payment processing.

Stripe will say that they will respond to the customers within 24 hours. However, it is not valid according to the people’s complaints and says that stripe will not give any quick response. Then you have to find another payment processor which is ready to accept the high-risk business.

Essential reasons for closing your account by stripe

1. So many chargebacks

Stripe, a payment provider, will work only with the merchant who maintains a 0.2 to 0.3 percentage of chargeback ratio. If your business has an increased chargeback ratio, then your business is called a high-risk business.

2. Complaints from customers

Another reason for your terminated account is due to several complaints received. Payment service providers feel that they are working with a high-risk business with customer complaints.


Your account will remain restricted without giving any warning or any details regarding the closure of your account. But you will get an email only declaring the suspension of your account. If your account is closed forcefully, you have to set up credit card processing with the help of an experienced merchant account provider.

Huynh Nguyen

Huynh Nguyen. I am an ordinary person with a passion for the internet. I am the man behind this organization. If you have any problems, just contact me at I will get back to you within 24 hours.

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