Particular organization varieties are restricted from establishing US-based modest company merchant accounts. The choice on who precisely is to be included in this “black List” is created by the Credit Card Associations of Visa and MasterCard and is mandatory for all credit card processing firms which are also their members. What this indicates is that no US credit card merchant processor is allowed to acquire transactions from blacklisted entities.
The biggest factor in determining whether or not a particular sort of enterprise really should be prohibited from setting up a US-based credit card payment processing service is the chargeback generation possible. In some industries, historical information show that it is just unacceptably high. It need to be noted that, even when a merchant account processing service is established, chargeback levels are still closely monitored and, if they exceed 1% of the total volume for three consecutive months, you will lose your credit card processing account. Applications from merchants engaged in the following activities will not be considered for US-based credit card transaction processing account, regardless of exception:
- Any merchant engaged in Illegal activity.
- Adult oriented merchandise or services (all media sorts: web, telephone, printed material etc.).
- Web/MOTO pharmacies (where fulfillment of medication is performed with an Internet or telephone consultation, absent a physical visit with a physician).
- Re-importation of pharmaceuticals from foreign countries.
- Web/MOTO firearm or weapons sales (including ammunition).
- World wide web/MOTO cigarette tobacco sales.
- Occult supplies.
- On the web gambling.
- Lotteries, raffles, gambling.
- Escort services.
- Collection agencies engaged in the collection of uncollectible debt, as defined by the Associations.
- Credit repair agencies.
- Sports forecasting or odds generating.
