The Credit card Networks of Visa and MasterCard have restricted certain types of businesses from establishing US-based merchant account services. These restrictions are mandatory and are enforced by the merchant banks (also called Acquiring Banks or simply Acquirers) which comprisa the Visa and MasterCard Networks. What this decision means is that no US merchant bank or a merchant service provider is allowed to acquire transactions from blacklisted entities.

There are several criteria that are taken into account in making the list but the biggest factor in determining whether a particular type of business should be prohibited from establishing a US-based credit card payment processing service is the chargeback generation potential. In some industries, historical data show that it the chargeback rate simply unacceptably high. You should be advised that, even when a card payment 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 for card payment processing services from merchants engaged in the following activities will not be considered for US-based merchant processing account, regardless of exception:

Any merchant engaged in illegal activity.
Adult oriented products or services (all media types: internet, telephone, printed material etc.).
Internet/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.
Internet/MOTO firearm or weapons sales (including ammunition).
Internet/MOTO cigarette tobacco sales.
Occult materials.
Online 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 making.