MerchantGreatWhy PayPal Flags You as "High-Risk"
PayPal's automated risk systems trigger rejections and 180-day reserves. Here's what causes it:
Banned Industries
❌ PayPal: Auto-rejects CBD, adult, crypto, gaming, firearms
✅ Alternatives: Checkout.com, PaymentCloud accept these
PayPal: 0% approval • Alternatives: 71-86%
180-Day Rolling Reserve
❌ PayPal: Holds 10-30% of revenue for 6 months
✅ Alternatives: High-risk PSPs use smaller reserves (5-10%)
PayPal: 180 days • Alternatives: 30-90 days
High Chargeback Rate
❌ PayPal: Flags at 0.5%, reserves at 1%, terminates at 1.5%
✅ Alternatives: High-risk PSPs tolerate 2-3%+
PayPal: 0.5% max • Alts: 2-3% acceptable
MATCH List
❌ PayPal: Auto-rejects any MATCH/TMF history
✅ Alternatives: Some high-risk PSPs evaluate case-by-case
PayPal: 0% approval • Specialists: Considered
Sudden Volume Spikes
❌ PayPal: Freezes account on 2x volume increase
✅ Alternatives: Growth-friendly processors scale with you
PayPal: Conservative • Alts: Growth-optimized
International Sales
❌ PayPal: Flags high non-US transaction ratios
✅ Alternatives: Global PSPs handle cross-border better
PayPal: US-focused • Alts: Multi-region
7 PayPal Alternatives for High-Risk Merchants
Approval odds are ML-predicted based on 8,000+ real merchant outcomes. Your specific odds depend on industry, volume, and risk factors.
Checkout.com
High risk tolerance, global coverage, fast approval
Higher fees (2.9% + $0.30), setup complexity
PaymentCloud
Accepts MATCH merchants, high-risk expertise
Higher rates (3.5-5%), rolling reserves
Durango Merchant Services
Fast approval, dedicated account manager
US-focused, higher fees for risky profiles
Braintree
PayPal integration, fraud tools, scalable
Same parent as PayPal, still rejects high-risk
Authorize.Net
Reliable, widely integrated, fraud suite
Requires separate merchant account, complex
eMerchantBroker
Accepts very high-risk, MATCH merchants
Higher rates (4-7%), longer approval times
Stripe (Low-Risk Only)
Best rates IF approved (2.9% + $0.30)
Auto-rejects high-risk, same policies as PayPal
Takes 8 questions • Get approval odds for all 7 processors • 100% free
Common PayPal Rejection Reasons (And How to Avoid Them)
Understanding why PayPal rejects accounts helps you choose the right alternative:
MATCH List History
Previous termination from any processor
Solution: Use MATCH-friendly PSPs like PaymentCloud
Banned Industry
CBD, adult, crypto, gaming, firearms, vape
Solution: Apply to industry-specific processors
High Chargebacks
Chargeback rate above 0.5-1%
Solution: Use high-risk PSPs with 2-3% tolerance
Account Velocity
Too many applications in short period
Solution: Get approval odds BEFORE applying
"PayPal hit us with a 180-day reserve on $80K and flagged our CBD business as 'prohibited'. MerchantGuard™ matched us with PaymentCloud in under a minute. Approved in 6 days with NO reserve. Wish I'd found this before wasting 3 months on PayPal."
How to Escape PayPal's High-Risk Trap
Know Your Risk Level
Match processor to your true risk profile
CBD/Adult/Crypto -> PaymentCloud, eMerchantBroker Gaming/High Volume -> Checkout.com Moderate Risk -> Durango, Authorize.Net Don't apply to PayPal clones (Braintree)
Avoid 180-Day Reserves
Choose PSPs with shorter reserve periods
PayPal: 180 days (kills cash flow) High-risk PSPs: 30-90 days Some offer 0% reserves after 6 months Negotiate reserves during application
Understand Fee Structures
High-risk = higher rates, but worth it
PayPal: 2.9% + holds = effective 4-6% High-risk PSPs: 3.5-5% but no holds Consider TOTAL cost, not just rate Reserves cost more than higher rates
Check MATCH Policy
Some PSPs accept MATCH merchants
PayPal: Auto-rejects MATCH PaymentCloud: Evaluates case-by-case eMerchantBroker: MATCH-friendly Reason code matters (some are worse)
Multi-PSP Strategy
Never rely on one processor
Primary: Best approval odds Backup: Different risk model Don't put all volume on PayPal ever Have emergency backup approved
Geographic Coverage
Match PSP to customer locations
US-heavy: Durango, PaymentCloud Global: Checkout.com LATAM: Conekta, Mercado Pago EU: Checkout.com, Adyen
Stop Fighting PayPal. Get Matched in 60 Seconds.
Our ML model analyzes 8,000+ merchant outcomes to predict your approval odds at each PSP. Don't waste time on processors that will reject you or trap you in 180-day reserves.
🚀 Start Free PSP Assessment →Disclaimer: Approval odds are ML predictions based on historical merchant outcomes and should not be considered guarantees. Actual approval depends on underwriting criteria, application quality, and processor risk appetite. MerchantGuard™ is an educational readiness tool and does not submit applications, negotiate terms, or guarantee approvals. We may earn referral fees from some payment processors.