ACH & Credit Card Processing Restricted Merchant Types

The following Merchant types are “Restricted,” carrying significantly more risk and requiring significantly more resources for Bank to monitor. Restricted Merchants are allowable by policy, but Reseller must be highly selective in regards to Restricted Merchants onboarded with Bank. Application packages for such Merchants should be exemplary in all regards, generally with 6+ months of clean Transaction history, 2+ years of audited financial statements or tax returns, and a background check clear of negative media and consumer complaints. Such Merchants may require additional collateral or other actions to assist in risk mitigation.

Bank, in its sole discretion, reserves the right to decline any such Merchants who pose significant risk.
• Any merchant that relies on a 3rd Party for Fulfillment of goods/services
• Any merchant where international transactions are expected to be 25% or more of total volume
• Bail Bonds
• Billing Company (Separate checklist and underwriting criteria apply)
• Cable, Satellite and Other Pay Television and Radio Services
• Career Advice or Placement Centers
• Computer Hardware Sales & Repair
• Computer Network/Information Services
• Computer Software Sales, subscription-based
• Direct Marketing – Continuity/Subscription Merchants
• Duty Free Stores
• Extended Product Warranty/Guarantee or Service Plans
• For-profit Colleges
• Furniture Stores (except for custom furniture)
• General Contractors: Residential and Commercial
• Independent Sales Organizations ("RESELLER's"), requires EDD by Bank and Bank must underwrite and contract with each underlying referred merchant
• Magazines and Newspapers
• Nutraceuticals, defined as products not approved by the FDA that make or imply health-related benefits to the user
• Oriental Rug Sales
• Political Action Committees (PACs)
• Start-up
• Telecommunication Services, including local and long distance calls and facsimile services
• Any other merchant posing elevated risk to Bank

ACH & Credit Card Processing Prohibited Merchant Types

The following Merchant types are “Prohibited.” Bank will not provide payment processing services for such Merchants. Reseller must make its best efforts to ensure no Merchants onboarded with Bank operate in a prohibited manner at any time.

• Any merchant diverting money out of the U.S.
• Any merchant selling "social media activity," including likes, positive reviews (or elimination of negative reviews), followers, friends, etc.
• Any merchant selling goods or services designed to mimic an illegal product or service
• Any merchant selling goods or services goods or services that are unfair, deceptive, or predatory and/or prohibitedby regularatory authorities
• Any merchant selling goods or services that infringe or violate upon the intellectual property of rights of others, including cyberlockers and merchants impersonating other merchants/brands
• Any merchant that does not maintain sufficient inventory to meet anticipated sales or whose internal or external fulfillment house lacks the resources to promptly fill orders
• Any merchant that does not meet Banks's requirements for U.S. domicile (i.e. located outside the United States)
• Any merchant that does not own the product at the time of sale and/or does not obtain the product until after the cardholder pays for them, including shipping and forwarding brokers
• Any merchant that fails to meet Bank's KYC/CIP/DD/EDD standards
• Any merchant that is currently in a chargeback or fraud monitoring program
• Any merchant that is prohibited by Bank's AML/BSA/OFAC policy(ies)
• Any merchant that offers listings or access to public or private grants and government funds
• Any merchant that poses reputational risk to Bank, including but not limited to businesses promoting racism, hate, violence, abuse, discrimination or other immoral activity
• Any merchant that refuses to provide necessary information about its business, owners, or operations
• Any merchant where the business entity and/or principal(s) are in bankruptcy
• Any merchant whose business model may ultimately become unsustainable because it involves transactions primarily for the enrollment of other promoters into the business (such as pyramid scheme) or where the success of the down line sales promoters is contingent upon enrolling other promoters rather than the sales of goods or services to end-user consumers
• Any merchant whose chargeback, refund, or return history is excessive
• Any merchant whose products are, or are likely to be, in violation of any law, statute, or regulation at the state or federal level
• Adult Products and Entertainment: Pornography, Novelties, Book, Video, Toy Stores, Conversation (Audio or Text), Gentlemen's Clubs, 900 Numbers, Sexual Enhancement, Passion Parties, Strip Clubs
• Airlines
• Alcohol, Wine, and Liquor Stores (On-line)
• Auctions (On-Line), including penny auctions, bidding fee auctions, and auctions with a countdown
• Bankruptcy Attorneys
• Car, Truck, Motorcycle, and Boat Sales (USED)
• Collection Agencies, except for “first party” collections activity conducted by the original party to which the debt is owed (which is allowable on a limited basis and requires written approval from Avidia Bank)
• Commodity or Securities Trading
• Consumer Credit Reporting Agencies
• Credit Card Rate Reduction Services
• Credit Restoration/Repair Agencies
• Crowd Funding
• Cruiselines
• Custom Furniture
• Dating & Escort Services
• Debt Consolidation
• Debt Repayment*
• Direct Marketing – Door to Door Sales
• Direct Marketing – Inbound Telemarketing Merchants
• Direct Marketing – Outbound Telemarketing Merchants
• Direct Marketing – Travel Related Arrangement Services MCC
• Discount Membership Clubs, including Discount Buying, Medical, Coupon, Upsell, or Rebate-Based Clubs
• Distressed Property Sales or Marketing
• Drug Paraphernalia, defined as any equipment, product, accessory, or material that is modified for making, using, or concealing drugs
• E-Cigarette/Vapor Stores (On-Line)
• eWallets
• Financial Counseling
• Gambling and Similar Activities, including lotteries, lottery tickets, sweepstakes, sports forecasting, odds making, casino gaming chips, off-track betting, fantasy sports (and DFS), and race tracks (excludes bingo, pickle cards, and raffles for charitable purposes)
• Games of Skill (for which a prize of value is offered to winners or participants)
• Guns/Firearms/Ammo/Weapons Dealers (On-Line)
• High Interest Non-Bank Consumer Lending, including but not limited to Pay Day Loans and Title Loans
• Information Retrieval Services
• Investment Advice, including "Get Rich Quick" Schemes
• Jewelry Sales & Repair (On-Line)
• Loan/Mortgage Modification Services
• Marijuana, including medical marijuana
• Marketplaces
• Memberships or subscription-based services that extend beyond one year in length
• Money Service Businesses or similar activities, including money orders, traveler's checks, money transmitters, check cashing, currency exchange, sellers/providers of prepared access (pre-card cards; gift cards; stored value), and quasi-cash 18
• Multi-Level Marketing (or any euphemism thereof, such as "MLM," "Direct Selling," "Affiliate Marketing," "Network Marketing") or "business opportunity" merchant whereby sales occur between the cardholder and an "independent agent" rather than the cardholder and the merchant directly
• "Negative Option" Marketing, Renewal, or Continuity Practices, generally defined as marketing practices involving a discounted, free, "pay only for shipping", or low-cost trial period, after which time the cardholder is charged periodically higher amount
• Pawn Shops
• Pay Day Loans
• Payment Facilitators
• Pharmacies (On-Line), including B2B card not present pharmacies, prescription fulfillment agencies, or advertising for such a merchant
• Prepaid Phone Cards/Minutes/Services
• Psychic/Occult Products or Services
• Remote Technical Support
• Sale-incentive-based programs whose profitability primarily relies on services paid for by the cardholder that are never or rarely used
• Synthetic Drugs (i.e. K2, Bath Salts, etc.)
• Tax Relief Services
• Ticket Resellers and Marketplaces
• Time Shares and Time Share Related Businesses
• Tobacco Products (On-Line)
• Travel Services, including travel agents, travel membership clubs, charter services, travel brokers, tour operators, and vacation planners
• Virtual Currencies, including BitCoin and BitCoin exchanges
• Any other merchant posing excessive risk to Bank, in the sole discretion of the Bank Vice President of Merchant Risk or higher ranking official
* Merchant types denoted with an asterisk may be considered on a limited “Restricted” basis for ACH processing only.
Bank reserves the right to modify these lists at any time.