What do Vito Corleone, Sherlock Holmes, and Tony Stark have in common? Each of these characters would be prohibited or restricted from running their company’s payments through an Adyen account.
In 2006, Adyen was founded by Pieter van der Does, Arnout Schuijff, and other entrepreneurs with the goal of simplifying payment processing. The Netherlands-based company is a popular option for global businesses, but there are some major drawbacks you should be aware of. If you are an Adyen prohibited business or restricted business, you will be unable to run payments using the platform.
For more information about which businesses face prohibitions and how to successfully process your company’s payments, read on.
TL;DR
- Since 2006, Adyen has provided support with mobile, point-of-sale (POS), and e-commerce payments.
- This popular platform largely focuses on the retail, hospitality, travel, restaurant, and e-commerce industries, although it works with a range of verticals.
- Unlike some merchant account providers, Adyen is incredibly limited in the businesses it serves. It has a long list of industries that are restricted or prohibited.
- While prohibited industries cannot use Adyen, restricted businesses are allowed to process payments as long as they follow certain rules.
- When companies are completely prohibited by Adyen, they must set up an account with an alternative payment processor.
- High-risk merchant accounts are a good option for processing transactions if you have. They have experience working with high-risk industries, so they understand the kind of underwriting, contract terms, security, and fee structure that these kinds of industries require.
What Is Adyen?
Today, Adyen has more than 4,000 employees in 28 offices around the world. In 2023, the payment processor handled more than €970 billion in payments. It serves as a single payment platform for businesses to accept e-commerce, POS, and mobile transactions.
While Adyen offers its services to many different companies, it primarily focuses on the following industries.
- Retail
- Restaurants
- Travel and Hospitality
- E-commerce
What Are Adyen’s Requirements for Businesses To Use Adyen?
In order to use Adyen, companies have to follow certain rules. Adyen prohibits and restricts businesses according to applicable local, national, and international laws. Additionally, the payment processor considers the reputational impact of working with different industries and business models.
Before Adyen works with a company or industry, it reviews the rate of chargebacks and fraud. As the risk level increases, the likelihood of being approved declines.
Finally, Adyen must also consider the requirements of its partners. Different card networks have specific requirements about who they will work with, and Adyen must enforce these rules.
List of Prohibited and Restricted Businesses on Adyen
If you are one of the Adyen prohibited businesses, you will not be able to use Adyen. Restricted businesses can use the platform, but they must meet certain requirements and be approved.
To help you get a better understanding of which organizations are allowed on Adyen, we’ve compiled a list of restricted and prohibited businesses. This list only focuses on merchants, so you should visit Adyen to see additional information about prohibited and restricted payment gateways and platforms.
- Adult Goods (Excluding Fetish Products): Restricted
- Fetish Products: Prohibited
- Content Involving a Sexual Nature: Prohibited
- Entertainment Involving a Sexual Nature: Prohibited
- Bearer Share Entities: Prohibited
- Binary Options: Prohibited
- Buy Now Pay Later (BNPL) Programs: Restricted
- Credit Repair Businesses: Prohibited
- Debt Collection Agencies: Restricted
- E-Wallets: Restricted
- Foreign Exchange, Virtual Currencies, and Similar Money Services: Restricted
- Fines: Restricted
- Unsecured Loans: Prohibited
- Unlicensed or Independent Financial Advisors: Prohibited
- Life Insurance: Restricted
- Non-Life Insurance: Restricted
- Shell Banks: Prohibited
- Remittance and Money Transfers: Restricted
- Payday Loans: Prohibited
- Payroll Services: Restricted
- Counterfeit Products: Prohibited
- Essay Mills: Prohibited
- Businesses Involving Copyright Infringement: Prohibited
- Get-Rich-Quick Schemes: Prohibited
- Ransom- and Extortion-Based Businesses: Prohibited
- Data Pass: Prohibited
- Deceptive Marketing Tactics, Claims, or Practices: Prohibited
- Inbound Telemarketing: Prohibited
- Pyramid Selling and Financial Scams: Prohibited
- Crowdfunding: Restricted
- Non-Profit Organizations: Restricted
- Airlines: Restricted
- Ancestry Research: Restricted
- Endangered or Protected Animal Products: Prohibited
- Art Dealers: Restricted
- Auction Houses: Restricted
- Bail Bonds: Prohibited
- Bankruptcy Lawyers: Prohibited
- Penny Auctions: Prohibited
- Casual Dating Services: Restricted
- Car Rentals and Sales: Restricted
- Vehicle Importers: Restricted
- Click Farms and Similar Social Media Businesses: Prohibited
- Detective Agencies: Prohibited
- Cyber Lockers, Domain Hosting, and Cloud Storage: Restricted
- Cruise Lines: Restricted
- Direct Marketing and Outbound Telemarketing: Restricted
- Drop Shipping: Restricted
- Embassies and Government Services: Restricted
- Ozone-Depleting Substances (ODS), Bacteria Cultures, and Research Chemicals: Restricted
- Hazardous Materials: Prohibited
- Health-Related Facilities: Restricted
- High-Value Fashion Items: Restricted
- High-Risk Cyber Lockers: Prohibited
- Human Body Parts or Fluid: Prohibited
- Internet Products and Service Providers: Restricted
- Intravenous Therapy: Prohibited
- Jewelry: Restricted
- Telecom Merchants: Prohibited
- Live-Streaming Services: Restricted
- Mail Order Spouses and International Match-Making Services: Prohibited
- Medical Equipment and Supplies: Restricted
- Medical Spas: Restricted
- Nutraceuticals: Restricted
- Pawnshops: Prohibited
- Policy and Religious Campaigning: Restricted
- Real Estate Services: Restricted
- Pseudoscience-Related Services: Restricted
- Standalone Tipping: Restricted
- Telemarketing Companies Selling Things as a Third Party: Prohibited
- Ticket Agencies: Restricted
- Timeshare: Restricted
- Veterinary Practices: Restricted
- Travel Agents: Restricted
- Alcohol Sales: Restricted
- Cannabis in Canada Only: Restricted
- Drugs and Drug-Related Tools: Prohibited
- Anything in Support of Illegal Activities: Prohibited
- Gambling and Games of Skill: Restricted
- Fireworks, Explosives, and Radioactive Materials: Prohibited
- Pharmaceuticals and Medical Devices: Restricted
- Tobacco and Tobacco-Related Products: Restricted
- Cryptocurrency Exchanges: Restricted
- High-Risk Securities: Restricted
- Digital Wallet Operators: Restricted
- Security Brokers and Investments: Restricted
- Aggregators: Restricted
- Payment Facilitators or Providers: Restricted
- Payment Service Companies: Restricted
- Decryption and Descrambler Products: Prohibited
In addition to this extensive list of Adyen prohibited businesses and restricted businesses, they have a few additional rules. Any company that uses Adyen’s logo or IP without asking for permission could potentially damage Adyen’s reputation, so this type of activity is expressly forbidden.
Additionally, any business can be banned from using Adyen if it advocates hate, violence, or discrimination. Terrorism and abuse are also prohibited.
What Should I Do If My Business Type Is Restricted on Adyen?
If your business type is restricted on Adyen and you want to set up a merchant account, start by reaching out to your Adyen representative. They can discuss the eligibility requirements and how to get your account approved.
It’s important to note that prohibited and restricted accounts are dealt with differently. Restricted accounts can still use Adyen, but you’ll likely have different onboarding and documentation requirements. In comparison, prohibited businesses aren’t allowed to have any kind of account on Adyen.
If your account is restricted after you’ve already set it up, talk to your account representative. Adyen will provide you with information about why your account was restricted and how you can remedy the problem. For example, this provider often requires other companies to provide additional documentation. You will also need to meet stringent verification requirements to show that your business is eligible to use Adyen.
Even if you turn in all of the requested documentation, it isn’t always possible to get your Adyen account approved. When this happens, the best option is to find a different payment platform to work with. There are many high-risk providers out there that can process payments from restricted industries.
For the best experience, find a provider that has worked with your industry in the past. You should also research their fee structure and chargeback prevention methods. Because high-risk providers typically deal with merchants that are more prone to fraud and chargebacks, they often offer specific, high-tech tools to mitigate fraudulent transactions.
What Are Some of the Top Alternatives to Adyen?
As you look for an alternative to Adyen, there are a few questions you should ask yourself.
- What are the underwriting requirements involved?
- Are there any rolling reserve requirements?
- What is the fee structure?
- What types of industries does the high-risk provider work with?
- What tools are available for chargeback and fraud prevention?
- Does the provider support your country, currency, and payment methods?
- What are the contract terms?
To get you started on your search, here are a few of the best alternatives to Adyen.
| Provider | Top Strengths | Ideal Option For |
| PayCompass | PayCompass is known for specializing in high-risk merchant accounts. They offer clear pricing and exceptional chargeback prevention tools. | This option works best for companies that are struggling to find a payment provider or that want reasonable terms. |
| Corepay | At Corepay, businesses can access top-rated services, fast approval times, and global coverage. | Corepay has received positive reviews from clients who are in the CBD, subscription, vaping, and cryptocurrency industries. However, you should verify which industries it works with before applying for an account. |
| PaymentCloud | At PaymentCloud, you can access top e-commerce integrations and a high approval rate. Plus, it offers excellent chargeback prevention measures and support. | PaymentCloud has built its reputation on providing accounts for high-risk merchants and e-commerce accounts that have a hard time getting approved by traditional providers. |
| High Risk Pay | High Risk Pay boasts fast approval times and support for merchants that have bad credit. | This option works best for companies that have very high risk levels or that need a fast approval process. |
| Durango Merchant Services | Durango Merchant Services is known for its long track record in the industry. It has a global presence and works with high-risk merchant accounts. | Businesses that have been declined by other providers can try applying with Durango Merchant Services. This provider is also a good option for companies that operate in unusual verticals. |
How PayCompass Can Help
Even if your company doesn’t fit the traditional mold, PayCompass can talk to you about the type of options available. Over the years, PayCompass has partnered with many high-risk merchants that needed access to a top-rated merchant account provider. Because of this, PayCompass can offer the tailored solutions global companies need to succeed.
Fraud and Chargeback Prevention
Many merchant accounts are considered high risk because they have an increased rate of fraud and chargebacks. Because of the higher risk level associated with these accounts, it’s important for businesses to find a payment provider that offers state-of-the-art fraud and chargeback prevention options. At PayCompass, we can help you prevent and mitigate fraudulent transactions, so more money stays in your pocket.
Customized Solutions
Your business is unique, so your approach to payment solutions should be too. When you apply for an account, we review your company’s history, fraud prevention needs, industry, transaction volume, and other factors. Then, we use this information to decide the type of services and support that you need.
Flexible Underwriting
If your business doesn’t fit the standard profile, traditional payment processors may be unwilling to give you a merchant account. With flexible underwriting, you can go beyond your credit score. Flexible underwriting typically involves looking at a broader range of considerations to determine your creditworthiness and risk profile. Then, this information can be used to decide whether your company should be given an account.
Competitive Fee Structure
At PayCompass, we provide a competitive fee structure and support for more than 170 different currencies. Our contracts clearly detail all of the fees involved upfront, so you can plan ahead. Instead of charging you according to your category label, we base your fees on our extensive evaluation of your underlying fundamentals, credit history, fraud rate, and other factors.
Final Thoughts
While Adyen offers a convenient, secure service, its stringent restrictions and prohibitions mean that many reputable companies are unable to do business with Adyen. If you are an Adyen prohibited business or Adyen restricted business, it’s essential to be proactive about finding alternative providers.
If you are a restricted business, you can work with Adyen to determine the type of onboarding steps and documentation you need to do in order to open an account. Adyen has specific rules about which kinds of merchants are allowed.
For merchants who are unable to open an account, high-risk merchant account providers offer a valuable lifeline. High-risk merchant account providers offer support in a range of industries, so you can find a provider that has experience in your field. Additionally, these providers can help you tackle issues with chargebacks and fraud.
For more information about setting up your merchant account, reach out to the experts at PayCompass today.
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