10 Risk Triggers That Can Shut Down Your Payment Processing

In today’s payment landscape, maintaining stable processing requires far more than just avoiding fraud. Processors are under pressure from card networks and regulators to enforce stricter compliance standards across every part of the merchant operation — from product type and refund policy to marketing strategy and customer experience. These shifts have led to an increase in account freezes, rolling reserves, and terminations across a wide range of industries.

At Compaytence, we’ve supported merchants through all of it — and we’ve identified 10 of the most consistent risk triggers that signal instability to processors. Whether you're in a high-risk vertical or scaling into new markets, these are the patterns being actively monitored.

1. KYC/KYB Inconsistencies All merchants are subject to global know your customer (KYC) and know your business (KYB)  requirements. Missing or inconsistent information — whether about your ownership, business address, or legal structure — is one of the fastest ways to stall or lose your account. These checks are ongoing, not one-time events.

2. High-Risk Products Without Proper Setup Stripe and Shopify Payments often approve high-risk products initially — but most get shut down as soon as sales begin. Ingestibles, supplements, skincare, and CBD face elevated scrutiny. If your supply chain, labeling, and compliance aren’t in order, processors won’t keep you.

3. Overhyped or Misleading Marketing Unrealistic claims, vague pricing, and AI-generated influencer content are now triggers. Marketing needs to set realistic expectations and be supported by real results. Disputes caused by bad expectations are flagged as merchant risk — not customer error.

4. Cross-Border Sales Without Infrastructure Selling globally without the proper setup — legal entities, tax compliance, localized payments — increases your risk profile. If over 30% of your sales come from outside your home country, expect scrutiny unless you’ve prepared a proper operational structure.

5. Fake Reviews and Inflated Social Proof Processors can detect fake or syndicated reviews — and many use automated systems to flag them. This is a fast track to reserves or full account shutdown. Merchants should focus on gathering authentic, verified reviews — and avoid shortcuts.

6. High Chargebacks and No Plan to Fix Them If you cross 1%, you're already in trouble. But it’s not just about the number — it’s about how you respond. Ignoring chargebacks, delaying refunds, or failing to implement alert systems tells processors you’re not equipped to handle customer disputes.

7. Refunds Signaling Product or Policy Issues High refund rates — especially outside the norms for your vertical — are seen as a signal of low product quality or misleading marketing. Long or vague refund windows (like 90 days) are also a concern. Clear, fair, and limited policies work best.

8. Unreliable Shipping and Fulfillment Shipping issues are among the most common dispute triggers. Vague timelines, missed tracking, or slow customer service during delays all create friction. Processors don’t want to take on that risk. Fulfillment needs to be reliable — and clearly communicated.

9. Brand Copying and IP Violations Using logos, product names, or likenesses without authorization can get you permanently removed from platforms like Shopify. A single DMCA takedown is often enough. Build your own brand and stay away from anything that resembles counterfeit activity.

10. Scaling Without a Business Plan Sudden spikes in sales are a red flag unless you’ve communicated a clear plan. Processors want to know you can support the growth — from inventory and suppliers to chargeback management and support. Without that visibility, they’ll limit or freeze your account.

The Industry is Moving Toward Hyper-Compliance

With Visa's upcoming Acquirer Monitoring Program (VAMP), acquirers will be held to even stricter standards. As a result, they’ll pass that scrutiny on to you. Processors aren’t just looking for high-volume businesses — they’re looking for fully compliant ones.

Compaytence Can Get You There

We’ve supported nearly 1,000 merchants in building compliant, processor-approved operations. Our team works directly with over 30 acquiring banks and payment service providers worldwide, offering insight into the internal standards these platforms use to evaluate merchant risk. From entity structuring to marketing reviews and dispute mitigation, we act as both strategic partner and compliance expert — helping you prevent disruption and position your business for long-term growth.

👉 Book a Call with Our Team — and take the first step toward becoming a merchant processors want to keep.