Merchant guides
Payment account shut down? What to do next.
If Square, Stripe, PayPal or another payment app closed your account, get the reason in writing, download your transaction history, and apply with a processor whose sponsor banks accept your type of business. Most shutdowns of smoke, vape, supplement, kratom and hemp-derived businesses happen because the app doesn't allow the category, not because the merchant did anything wrong.
Your first week, step by step.
- Get the reasonAsk whether the closure was about your product category, chargebacks, unusual volume or identity checks. The answer shapes your next application.
- Download your recordsSave your transactions, payouts, refunds and disputes for the last three to six months before you lose access. Underwriters will ask for them.
- Ask about held fundsProcessors can hold your remaining balance for a period to cover refunds and chargebacks. Get the release date in writing.
- Ask whether you were reported to MATCHMATCH is Mastercard’s list of merchants whose accounts were closed for certain reasons. A listing stays for five years and limits which banks can approve you, so it’s better to know now.
- Apply with a processor that accepts your categoryTell them about the shutdown upfront and send your statements and records with the application.
What not to do.
- Don’t open a new app account under another nameRunning your sales through a different business or person to get around a closure breaks card network rules and can get you listed on MATCH.
- Don’t hide the shutdownUnderwriters find out. A file that explains what happened is far more likely to be approved than one that leaves it out.
- Don’t wait until you’re out of optionsApproval takes days, not hours. Apply as soon as you know the old account is closing.
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FAQ
Common questions
Can I get approved after being shut down?
Often, yes. A shutdown doesn't rule you out, especially when the reason was your product category rather than fraud. Be upfront about it on the application. Hiding it is what gets files declined.
Will my new account have a reserve?
Possibly. After a shutdown, underwriters may hold back a small percentage of each batch for a period to cover chargebacks. You'll know the terms before you sign.
How long will my old processor hold my money?
It depends on their terms and your chargeback risk. Processors can hold remaining funds after closing an account to cover refunds and disputes. Ask them for the release date in writing.
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