Shopify is one of the most popular e-commerce platforms that enables businesses to create an online store to sell their products and services. While Shopify is a great platform for many businesses, it can be difficult for high-risk merchants to use. In this article, we will discuss what are Shopify high-risk merchant accounts and what you can do if Shopify holds your funds.
High-risk merchants are those that operate in industries that are considered to be high risk due to various factors such as chargeback rates, fraud, and industry reputation on its platform. When Shopify identifies a merchant as high risk, they may put their payments account on hold, which can be a frustrating experience for business owners. So, keep on reading to explore high-risk merchant accounts, why Shopify may hold your funds, and what you can do about it.
Before discussing high-risk merchant accounts, it is important to discuss the criterion for declaring a business high-risk. In 2026, Shopify considers a business high-risk if it operates in a high-risk industry or has a higher risk of chargebacks, fraud, or other financial risks. There are several factors that can trigger Shopify to classify a business as high-risk. These include:
If Shopify determines that a business is a high risk, it may place a hold on the account, require additional documentation or verification, or terminate the account altogether. This protects both the merchant and the payment processor from financial risks.
Shopify allows merchants to accept payments from customers through various payment methods, including credit cards, PayPal, and Apple Pay. However, there are several factors that can trigger Shopify to hold your funds. These include:
Shopify has a set of terms of service that all merchants must abide by. If a merchant violates any of these terms, Shopify may hold their funds as a penalty. This could include selling prohibited products, engaging in spam or phishing, or using unauthorized payment gateways.
Chargebacks and refunds are a common risk for all businesses that accept payments online. However, some businesses are at a higher risk of chargebacks and refunds than others. If your customers frequently request chargebacks or refunds, Shopify may consider your account high risk and put a hold on your funds.
Shopify may hold funds if it requires additional documentation or verification to ensure compliance with its policies and legal requirements. This could include requests for identification documents, business licenses, or tax information.
If there are errors in your payment processing, such as incorrect billing or shipping information, Shopify may hold your funds until the issue is resolved.
If Shopify suspects that there is fraudulent activity, such as stolen credit cards or identity theft, it may put a hold on your funds.
If your business sells products or services that are considered high-risk, such as CBD products, tobacco, or firearms, Shopify may hold your funds.
If your Shopify account is on hold, there are several steps you can take to resolve the issue and get your funds released. Here are some tips to help you get started:
The first step is to read Shopify’s email explaining why your funds have been placed on hold. This email will outline the reason for the hold and the documentation you must provide to prove your business’s legitimacy. If you still have queries contact Shopify support and ask why your account is on hold. Shopify will provide you with a reason for the hold and instructions on resolving the issue.
You must provide documentation such as government-issued identification, business licenses, and proof of address to prove your business’s legitimacy. If your business is involved in a regulated industry, such as pharmaceuticals or online gambling, you may also need to provide additional documentation, such as permits and certifications.
If the hold is due to excessive chargebacks or refunds, you may need to provide evidence that you have taken steps to reduce the risk of chargebacks. This could include improving customer service or offering refunds and exchanges.
If your account is on hold due to high-risk products or excessive chargebacks, you will need to take action to reduce the risk. This may involve discontinuing the sale of high-risk products or implementing new policies to reduce the risk of chargebacks.
Once you have gathered the necessary documentation, you will need to submit it to Shopify for review. You can do this by logging in to your Shopify account and navigating to the Payments section.
After you have submitted your documentation, it’s important to follow up with Shopify to ensure that they have received it and are reviewing it. You can contact their support team through email, chat, or phone to check on your account status.
You may want to consider alternative payment methods, such as cryptocurrency or e-wallets. These payment methods are not as widely accepted as credit cards, but they can be a good option for high-risk merchants struggling to find a payment processor that will work with them.
If Shopify is unwilling to release your funds, consider using an alternative payment gateway. There are several payment gateway providers that specialize in high-risk merchant accounts and may be able to provide better services for your business.
Payment Cloud, Signature Payments, PayKings, and Easy Pay Direct are some payment gateway providers specializing in high-risk merchant accounts. These providers can help you set up a high-risk merchant account and process payments for your business. These providers also offer chargeback protection and fraud prevention services to help reduce the risk of chargebacks and fraud.
A high-risk merchant account is a payment processing account that is specifically tailored to the unique needs of high-risk businesses. Unlike an aggregate high-risk merchant account shared among multiple companies, a dedicated account provides the business with its own merchant identification number (MID) and more control over its payment processing.
With a dedicated high-risk merchant account, transactions between the merchant and the customer are deposited directly into the business’s bank account, which provides faster access to funds and more transparency in the payment processing process. Additionally, dedicated accounts often offer more flexible processing terms and customized solutions tailored to meet the business’s needs.
In contrast, an aggregate high-risk merchant account, like those established through Shopify, uses one merchant account for a portfolio of businesses. This means that the account provider, like Shopify, has more control over the payment processing process and can change their rules or terms without the business owner’s consent.
While aggregate high-risk merchant accounts can be a convenient option for some businesses, dedicated high-risk merchant accounts offer more control, flexibility, and transparency in payment processing. It’s important for high-risk businesses to carefully evaluate their options and choose a payment processor that best meets their unique needs and requirements.
A high-risk merchant account can offer several benefits to businesses operating in industries that are considered high-risk. Here are some of the key benefits of having a high-risk merchant account:
High-risk merchant accounts often come with a wider range of payment processing options, including e-checks, ACH payments, and international payments. This can help businesses expand their customer base and increase revenue.
While high-risk merchant accounts may have higher processing fees than traditional merchant accounts, they often have lower fees than third-party payment processors specializing in high-risk industries. This can help businesses save money on payment processing fees over the long term.
Chargebacks can be a major issue for high-risk businesses, resulting in lost revenue, increased fees, and even account termination. High-risk merchant accounts often come with tools and services that can help reduce the risk of chargebacks, such as fraud detection software and chargeback mitigation services.
High-risk merchant accounts typically offer faster processing times and more frequent payouts than traditional merchant accounts. This can help businesses improve their cash flow and better manage their finances.
High-risk merchant account providers often have more specialized knowledge and experience in high-risk industries than traditional merchant account providers. This means they can offer more personalized and responsive customer support to help businesses navigate any issues or challenges they may face.
High-risk merchant accounts often offer more flexibility in terms of processing terms, payout schedules, and transaction limits. This can help businesses customize their payment processing solutions to meet their unique needs and requirements better.
Getting a high-risk merchant account with Shopify can be a challenge, as the platform has strict guidelines for accepting high-risk merchants. However, getting a high-risk merchant account with Shopify is possible if you are prepared to provide the necessary documentation and follow their guidelines.
Here are some steps you can take to get a high-risk merchant account with Shopify:
Shopify has a list of prohibited and restricted businesses, including certain industries considered high-risk, such as firearms, adult products, and CBD products. Before applying for a high-risk merchant account with Shopify, check if your business falls under any of these categories.
To apply for a high-risk merchant account with Shopify, you will need to provide the following documentation:
Make sure that all the documents you provide are accurate and up-to-date, as Shopify may reject your application if any information is incorrect.
Once you have gathered all the necessary documentation, you can apply for a high-risk merchant account with Shopify. To do this, go to your Shopify Payments settings and click on the “Complete your account setup” button. From there, select the “High-Risk Business” option and follow the prompts to provide the required information and documentation.
After you submit your application, Shopify will review your documentation and decide whether to approve your high-risk merchant account. This process can take several days or even weeks, depending on the complexity of your application.
If Shopify rejects your application or places your account on hold, it’s important to work with their support team to resolve any issues. This may involve providing additional documentation or addressing any concerns they have about your business. Be patient and persistent in your communication with Shopify, and be willing to make any necessary changes to your business practices or policies to comply with their guidelines.
