High risk payment gateway: why some businesses are hard to place

The short answer

CBD, products that make medical-style claims, travel, holiday lets and marketplaces are the businesses most often labelled high risk.
Stripe approves you fast but can hold your money later if it decides it does not like what you sell.
Specialist providers will say yes, but expect more questions, higher fees and sometimes money held back. Be patient.

Tony Berry has spent 16 years in card payments and runs Payment Guru and Tip4 from Kent. We asked him why some businesses cannot get a card processing account, and what he does about it. His answers are below, in his own words, from a voice note he recorded in October 2026.

He started with the warning he gives every high risk merchant:

"I would just say to all merchants who believe themselves to be high risk, have a certain amount of patience. There is a fair bit of back-and-forth, probably a lot more than there would be if they were a small retail business."

Published 5 November 2026. Checked against Stripe's published terms, the Food Standards Agency, the CAA and legislation.gov.uk on 5 November 2026.

Which types of business usually count as high risk?

It is a longer list than it sounds, and it starts with what the product claims.

"There's a number of things that can get qualified as high risk these days.

"So something that is likely to be seen as some sort of chemical. Something that makes big claims but shouldn't be promising them. That might be hair growth stuff, that could be erectile dysfunction, anything that has a pseudo-medical claim. CBD is certainly one of the big ones.

"These things can be slightly tricky to place. Certainly a lot of the mainstream channels and platforms, like Shopify, won't like these."

Then the sectors where the money arrives long before the service. That includes travel, and marketplaces, which Tony treats differently.

"And you've got your traditional stuff as well. You've got your travel businesses. And there's a lot more things starting to be found in this sort of area, such as marketplaces, but I would treat those slightly differently."

Why do the big providers turn them down or close their accounts?

Because the acquirer carries the loss if you fail to deliver, and the card schemes can fine the acquirer too.

"Most acquirers are either very cautious with all of these or don't want to take them at all. There are other parties that will be able to do these, but it may mean processing is done overseas, with significantly higher fees. But it can mean that there's an ability to get a solution for businesses that struggle in this area.

"The risk to the acquirer, and potentially even scheme implications, can be a major problem in terms of businesses struggling."

Why can Stripe approve you quickly and then hold your money?

Because Stripe is a payment facilitator. It says yes first and looks later. If you sell online and you also take orders by phone, read why Tony sends a payment link instead.

"Some of them may have realised that getting set up with Stripe can be very straightforward at the start. However, funds could be held at any time.

"What tends to happen is that Stripe is what's called a payment facilitator, so they will approve quickly. But then if you appear to be processing in a way that they do not like, or that they wouldn't normally have approved, this could be pulled at any time. So you could have several thousand pounds held, and could even lose that, because they are saying that you've gone against their terms and conditions, in terms of a product that they may not be 100% comfortable with."

What do providers want to see before they say yes?

Volume, and proof that you can deliver what you have been paid for.

"They are expected to provide significant volume, which might mean there's minimum billings. But again, it's a specialist area in its own right."

For travel, that means money held somewhere safe until the customer has flown.

"It could also be a business that has a long time between the payment and the service. That could be a travel business taking bookings five or six months ahead. Those businesses need bonding, they need certain things to support them."

What's a settlement reserve, and why do providers hold back money?

Holiday lets are his example. The money is large, it is paid up front, and the property belongs to someone else.

"Or it could be holiday lets, for example. Again, these can be a problem because of high turnover, but a lot of the properties are held by third parties. And it might mean certain terms, such as a settlement reserve, and certain things that mean that the facility is atypical."

The rules, with sources

What Stripe will not take. Stripe's UK restricted businesses list, last updated 22 September 2026, prohibits "cannabis products" and CBD products above the local THC limit, "pseudo-pharmaceuticals or nutraceuticals that are not safe or make harmful claims", "commercial airlines and cruises", "timeshare services" and "get rich quick schemes". It restricts, meaning case by case, "cannabidiol (CBD)" products with negligible THC, "pharmaceuticals, medical devices and telemedicine" and "travel reservation services and clubs". The list says it is "not an exhaustive list". Source: Stripe restricted businesses, UK.

How Stripe can hold your money. Stripe's UK services agreement defines a "Reserve" as "collateral funds which Stripe holds and controls to satisfy any liabilities or potential liabilities User incurs under this Agreement", and lets Stripe deduct or set off amounts it is owed from that reserve, from funds payable to you, or from your Stripe account balance. That is the mechanism behind Tony's "several thousand pounds held". Source: Stripe Services Agreement, UK, sections 7.2 and 12.

Why CBD is a flag. CBD sold as food in England and Wales is a novel food and must be authorised before sale. The Food Standards Agency's advice since October 2023 is that healthy adults should take no more than 10mg of CBD a day from food, and it does not recommend CBD for under-18s, people on medication or anyone pregnant or breastfeeding. A product that is not on the FSA list should not be on the market. Source: Food Standards Agency guidance on cannabidiol.

Why travel needs "bonding". The Package Travel and Linked Travel Arrangements Regulations 2018 require insolvency protection for package holidays, by bonding, insurance or money held in trust. Any business selling flight-inclusive packages or flight-only to UK consumers must hold an ATOL unless it is an airline or exempt. An acquirer will ask to see this before it takes a deposit six months ahead of travel. Sources: The Package Travel and Linked Travel Arrangements Regulations 2018, Part 5 and CAA, do I need an ATOL.

On "significantly higher fees" and "minimum billings". Tony does not put a number on either, and no UK regulator publishes high risk pricing. Overseas acquirers quote case by case. If someone gives you a flat high risk rate before seeing your business, ask what it is based on.

Quick answers

What is a high risk payment gateway?
Tony: "There are other parties that will be able to do these, but it may mean processing is done overseas, with significantly higher fees. But it can mean that there's an ability to get a solution for businesses that struggle in this area."

What businesses are high risk for card payments?
Tony: "Something that makes big claims but shouldn't be promising them. That might be hair growth stuff, that could be erectile dysfunction, anything that has a pseudo-medical claim. CBD is certainly one of the big ones."

Why did Stripe freeze my account?
Tony: "Stripe is what's called a payment facilitator, so they will approve quickly. But then if you appear to be processing in a way that they do not like, or that they wouldn't normally have approved, this could be pulled at any time."

Why is a travel business high risk?
Tony: "That could be a travel business taking bookings five or six months ahead. Those businesses need bonding, they need certain things to support them."

What is a settlement reserve?
Tony: "It might mean certain terms, such as a settlement reserve, and certain things that mean that the facility is atypical."

How long does it take to get a high risk merchant account?
Tony: "Have a certain amount of patience. There is a fair bit of back-and-forth, probably a lot more than there would be if they were a small retail business."

Next step

I get it. You have been turned down, or you have money sitting in a Stripe balance you cannot reach, and every page you find is a provider promising instant approval. Tony's line is the opposite. It takes longer, it costs more, and the ones promising instant are the ones who hold your money later.

Send Tony last month's statement, or your Stripe dashboard if that is what you have, and tell him what you sell, where your customers are and how far ahead they pay. He will tell you which acquirers will look at you, what they will ask for, and what the fees are likely to be. If you are not high risk at all, he will say so.

This will not suit everyone. If your volume is small, a specialist acquirer with minimum billings may cost more than it is worth, and Tony will tell you that too. The high risk payment processing page covers how the placing works.

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About Tony Berry

Tony runs Payment Guru and Tip4 from Kent. He has worked in card payments for over 16 years and set up Payment Guru to find businesses the right card processing, terminals and payment tools, and Tip4 to do tipping and tronc. He is the person who answers the phone. Payment Guru on LinkedIn

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High risk payment gateway: why CBD, travel and holiday lets are hard to place, and what gets you a yes