Transcription
Prohibited & RestrictedMerchant Guide
Activities known to be in violation of laws, regulations and rulesActivity that could cause measurable reputational damage to the Bank/MSPActivity that could measurably affect the safety and soundness of the Bank/MSPActivity pursued for the purpose of circumventing the intent of Card Brand or regulatory rulesPROHIBITEDMERCHANTSActivity initiated by foreign-owned entities, or entities based outside the United StatesActivity materially conducive to money laundering or criminal exploitationActivity that could constitute load balancingDOCUMENTS TO REQUESTFour most recent months previous processingFour most recent months business checking statementsTwo years tax returns or audited financials(Accounts over 100K/monthly volume)RESTRICTEDMERCHANTSContract with full terms and conditions (refund & deposit policies) if applicableVerify parameters on application with previous processing statements or industry standard(e.g. Construction/ Home Improvements with 1K high ticket)Merchant Applitcation Request must match previous processing statements.
PROHIBITED MERCHANTS OR PRODUCT TYPESCLARIFICATIONSMerchant IndustryAdult Material & Entertainment(Retail, Card Present)Includes adult or sexually oriented products, services, and media. No Adult Videos.(See Gentlemen’s Club BMO Exception)RestrictedAdvertisingMonthly or Quarterly Billing MaxRestrictedAge Sensitive Products(Card Not Present-CNP)Tobacco/Alcohol/ (firearms/guns refer to Gun Sales)RestrictedAggregators(or Payment Facilitators- PayFac’s)Properly registeredRestrictedAir Craft ServicesRestrictedAirlinesIncludes charters, private jets, aircraft lease payments, regional, national andinternational airlines.ProhibitedAmmunition & Gun Sales(Retail, No Gun Shows, No Personal Sales, NoAssault Weapons)Merchants primarily selling weapons, weapon parts, or ammo via card present (swiped)transactions.(ATF states Sale of ammunition alone does not require a license)Restricted(FFL required unless theyprovide a LOI stating they willonly sell ammo)Animals by Mail(Recommend-Shipping guidelines to confirm they follow federal and state shipping laws)RestrictedArt Galleries and Art DealersAuctionsRestrictedCard present(CNP under Online Auctions)Automobile Rental Car AgenciesRestrictedRestrictedIncludes all merchants primarily engaged in the sale of used vehicles. Requires letter ofintent (deposits, repairs/service only) repairs and service only for TBB no depositsRestrictedBail BondsIncludes businesses primarily acting as a surety for persons accused in court.Restricted(Collect license or certificationneeded to sell Bail Bonds priorto approval)Bill Payment ServicesBusinesses that primarily offer centralized portals for bill payment to third partyvendors.(Also refer to Aggregators)RestrictedAutomobile Sales (Used)Bridal and Formal WearBusiness Opportunities (Work-at-Home)RestrictedOpportunities with deceptive marketing, promises of wealth, products / services ofquestionable value. Investment opportunities/Multi level marketing (e.g. a websitefeaturing ‘levels’ compensation plans)Restricted
PROHIBITED MERCHANTS OR PRODUCT TYPESCLARIFICATIONSBusiness physically located outside the US /Offshore Merchants (or Embassy, ForeignConsulate or other Foreign Government)Merchant IndustryProhibitedBusiness Selling Goods or ServicesInternationallyIncludes businesses primarily engaged in the exportation of goods outside the UnitedStates.RestrictedCable Box DescramblersIncludes all devices or software designed to circumvent copyright protection techniques.ProhibitedCarpet and Flooring(Recommended-Copy of contractor license & contract with full terms and conditions)RestrictedCatering(Recommended-Contract with full terms and conditions)RestrictedCell Phone Stores and PlansRestrictedCharters & ToursExcluding Day tripsRestrictedCheck CashingIncludes businesses primarily engaged in check cashing services.ProhibitedCoin DealersIncludes businesses primarily engaged in the sale of coins or the exchange of foreigncurrency.(Minimum 5 yrs. in business and 6 months satisfactory previous processing)RestrictedRestrictedAddendum NeededCollectibles/MemorabiliaCollection AgenciesUncollectable DebtConcierge ServicesRestrictedRestricted(Recommended-Copy of contractor license & contract with full terms and conditions) forCabinets & Counter installation refer to Kitchen and Bathroom, for Window and doorsales refer to Window and Door SalesRestrictedConsumer Electronic and Computer Hardware, MOTO/ Internet require 1 yr. in operations plus minimum 6 months satisfactory previousProducts, Sales, Supplies, Service, and RepairsprocessingRestrictedConstruction/ Home Improvement ContractorsCounterfeit Goods(i.e. Gucci, Rolex, etc.) to include ‘tribute’ items, such as ‘Louis Vitton’ bag; replicas,reproduction of original luxury goodsProhibitedCoupon Books (Printed)Merchants that are primarily engaged in the sale of coupon books and coupon clubmemberships.Restricted
PROHIBITED MERCHANTS OR PRODUCT TYPESCLARIFICATIONSMerchant IndustryCredit Card Protection Services / Identity TheftIncludes all services designed to pay credit card balances due to unemployment orexigent circumstances.ProhibitedCredit Repair ServicesIncludes all services and counseling purportedly designed to repair consumer orbusiness credit.RestrictedCross border TradeBlood Products or PharmaceuticalsProhibitedCrowd Funding(i.e. Kickstarter, GoFundMe)ProhibitedCruise LinesIncludes all regional and international cruise lines, charter services, and vacationpackages involving cruises.ProhibitedDating ServicesBusinesses offering matchmaking services, memberships and social networks dedicatedto dating.RestrictedDebt ConsolidationIncludes all entities offering to consolidate Debt / Debt Relief / Credit InsuranceProhibitedDebt Counseling ServicesIncludes all entities offering counseling services to reduce debt (no debt consolidation)RestrictedDebt Representation Services(No Past Due Debt Collection, Includes Legal &Consulting Services, Bankruptcy Law)Services primarily focused on all forms of debt reduction, negotiation, settlement(includes tax and mortgages). Includes bankruptcy lawyers.ProhibitedDetective Services/ Private InvestigatorsIncludes unlicensed private investigators, unlicensed detective agencies and relatedservices.RestrictedDietary SupplementsRestrictedDirect Marketing - Catalog & RetailGoods sold via a combination of catalog and retail store.RestrictedDirect Marketing - Catalog BusinessesMail order houses where customers select products from printed or electronic catalogwith no face-to-face sales.ProhibitedDirect Marketing - Continuity, SubscriptionsServices offered via continuity subscription basis until the cardholder cancels (movies,music, newspapers)ProhibitedDirect Marketing - Inbound TeleservicesMerchants that offer information services (inbound calls) may include, polls,sweepstakes, horoscopes, etc.ProhibitedDirect Marketing - Insurance ServicesInsurance services offered via direct mail, billing insert, magazine or television ads.ProhibitedDirect Marketing - Not Elsewhere ClassifiedMerchants that offer products / services with direct marketing methods; infomercials,direct response ads, etc.Prohibited
PROHIBITED MERCHANTS OR PRODUCT TYPESCLARIFICATIONSMerchant IndustryDirect Marketing - Outbound TelemarketingMerchants that solicit customers via outbound calls and mailings and typically includevitamins, cosmetics, etc. (including MCC’s 5965, 5966, & 5967)ProhibitedDirect Marketing - Travel Related ServicesTravel packages and subscriptions offered to customers via direct mail and outboundtelemarketing.ProhibitedDiscount Buying ClubsBusinesses primarily offering memberships or access to purchase merchandise atdiscounted prices.ProhibitedDocument Preparation ServicesDrug ParaphernaliaRestrictedIncludes products generally used for the consumption or distribution or illegalsubstances.Educational Materials/ Seminars/ Self Help/Life CoachingElectronic Cigarettes (E-Cigarettes)RestrictedRestrictedCard present-retail only (Card-not-present prohibited)Embassy, Foreign Consulate or other foreigngovernmentRestrictedProhibitedEscort Services (Sexually Suggestive)Includes merchants with sexually oriented marketing offering dating, escort andcompanionship services.RestrictedEssay Mills/Paper MillsGhost writing services that sell term papers, essays etc. with intent that purchaser willsubmit documents as ownProhibitedExtended Warranties (Products or Services)Businesses offering extended warranty coverage for products or services. (includingprotection services)ProhibitedFinanced Payments via Credit Card(All products and Services)Prohibited(Registered Debit CardRestricted)Fireworks Retailers (Unlicensed)All businesses selling via card not present or card present without a valid license.Licensed retailers acceptable.ProhibitedForeign Entity or Foreign Resident ownedMerchantsRestrictedFortune Tellers, Psychics, Astrologers,Spiritual ReadersIncludes astrologers, numerologists, palm readers, psychics, and spiritual advisers.RestrictedFreight Forwarding, Shipping BusinessesBusinesses that primarily forward packages or freight on the behalf of other carriers.RestrictedFurniture & Mattress Stores(Office / Commercial or Home Furnishings withExcessive Forward Delivery)All Internet / MOTO furniture sales, and card present sales with average deliverytimeframes greater than 7 days.Restricted(Requires Bank Concurrence)
PROHIBITED MERCHANTS OR PRODUCT TYPESCLARIFICATIONSMerchant IndustryFuture Service Liability Greater than one yearAll products types, services, membershipsProhibitedGambling/ Sports Forecasting (MCC 5967 /7995)Includes all gambling, wagering, lottery, fantasy sports, casino chips, and off-trackbetting activity.(Also includes Lottery Sales/Horse and Dog Racing/ Skill Games/)ProhibitedGeneral Contractors(Recommended-Copy of contractor license & contract with full terms and conditions)RestrictedGentlemen’s ClubsGet Rich Quick ServicesProhibitedIncludes services marketed as minimal effort and high return or promises of wealth.Gold, Coins, Precious MetalsProhibitedProhibitedGolf Clubs-Custom MadeMinimum 1 yr. in business and 3 months previous processingRestrictedGovernment Grant ServicesAll services to aid individuals with applying, qualifying or obtaining government grants.ProhibitedHair restoration ServicesNon-Medical nutraceutical type hair restoration products are prohibited for unreasonableguarantees. medical procedures for hair restoration ARE allowable on BMO HarrisRestrictedHome Based CharitiesCharities that are home based excluding well established and tax-exempt organizationsand residential hospice care.RestrictedHookah EstablishmentsRetail only- No Drug ParaphernaliaRestrictedIllegal ProductsIncluding Illegal Synthetic Stimulants (Bath Salts), Salvia Divinorum or HGHProhibitedImmigration & Naturalization ServicesMust be provided by licensed AttorneyRestrictedInternet Service Providers & ComputerNetworkingMCC 4816 ( Also refer to Telecom merchants)RestrictedInvestment Opportunities & Ponzi SchemesIncludes all forms of securities, stocks, bonds, futures, and cash gifting activity.ProhibitedKitchen and Bathroom Cabinets & CountersInstallation (Large average tickets 2.5K )(Recommended-Copy of contractor license & contract with full terms and conditions)RestrictedLead Lists(All Types)Restricted
PROHIBITED MERCHANTS OR PRODUCT TYPESCLARIFICATIONSMerchant IndustryLifetime Memberships or GuaranteesIncludes businesses offering services and guarantees in perpetuity.ProhibitedLimousine and Taxi ServicesRestrictedLiquidation companiesProhibitedLoan Modification/Mortgage Relief ServicesProhibitedMagazine Subscriptions(Internet, Direct Mail, Telephone)Businesses primarily selling magazine subscriptions to one or more publications in anymedia format.Restricted(12 months Future Service orless)Marijuana or Drug SalesIncludes all drugs that are illegal under any law (including Medical Marijuana regardlessof any State laws). All typesProhibitedMassage Parlors, Massage Therapy(Unlicensed, Sexually Oriented)Includes all unlicensed massage parlors and therapists, and all sexually orientedservices.ProhibitedMassage TherapistsTherapist certification or LMT Credentials requiredRestrictedMedical & Dental Loan Payments/Financedpayments via CC(All products and Services)Prohibited(Registered Debit CardAcceptors RestrictedMembership clubsMust be 12 months future serviceRestricted( 12 months Future Service)Merchants requiring Card Brand RegistrationModeling Agencies / Beauty PageantOrganizationsRestrictedIncludes model scouting, social networks dedicated to modeling portfolios, marketing,and beauty pageants.Modification ChipsMoney Services Businesses- Money Orders,Money Transfer Networks, Quasi-Cash(Redeemable Tokens, Bitcoins, VirtualCurrencyProhibitedIncludes merchants primarily offering money orders, travelers checks, wire transferservices or stored value cards. Includes All Bitcoin, Virtual Currencies and gamblingtokensMoving Companies(long or local distance providers)Multilevel Marketing BusinessesMutilation of Body pportunities focused on recruitment, wealth generation, questionable value of productsRestrictedor services. (Product sales Only) (called MLM)(Bank Concurrence Required)Includes all acts or simulated acts of mutilation via all forms of media.Prohibited
PROHIBITED MERCHANTS OR PRODUCT TYPESCLARIFICATIONSi.e. customer is automatically charged If they don’t return merchandise or cancel serviceNegative response marketing techniques byat the end of a free or low cost trial period. Includes hidden disclosures, bogus claimsany type of merchant/ Deceptive marketingand endorsements, refund/cancellation avoidance, poorly disclosed negative option, prepractices.checked opt-in boxes for payment without cardholders active consentMerchant IndustryProhibitedNon Profit or Charitable entitiesStart ups (any business with less than 12 months of verifiable business history)RestrictedNutraceutical Businesses(Teeth Whitening, Colon Cleansers, SexualEnhancements, etc.)Merchants that are engaged in the sale of teeth whitening, colon cleansers, sexualenhancement supplements, etc. Also includes Acai, Hoodia, Noni Juice, HGH, CoralCalcium.RestrictedOnline Auctions(CNP auctions)Includes penny auctionsRestrictedOnline Electronic SalesIncludes businesses primarily engaged in the sale of electronics via MOTO or the Internet.RestrictedOnline Jewelry SalesIncludes businesses primarily engaged in the sale of jewelry via MOTO or the Internet.RestrictedOnline MallsRestrictedOnline/ Mail order Event Ticket SalesMinimum 1 yr. in business and 6 months satisfactory previous processingRestrictedPast Due Collection ServicesIncludes all entities attempting to collect on past due debt on the behalf of third parties.RestrictedPatently Offensive Material(Racist, Bigoted Materials)Includes merchants selling goods or services designed to incite hate, violence, or abuseof individuals or groups.ProhibitedPawn ShopsRestrictedPay Per Click and parked websitesAll types of products/servicesProhibitedPayday LendingIncludes all entities primarily offering short-term loans, title loans, and cash advanceservices.ProhibitedPenny AuctionsIncludes all pay per bid and bidding fee auction services. Normal auction houses andconsignment shops are acceptable.RestrictedPharmaceuticals(Card Not Present)Includes all entities engaged in the card not present (keyed) sale of prescription drugs.Prohibited(Retail only)Pharmacies (Card Present)100% swiped onlyPlastic SurgeonsRestricted
PROHIBITED MERCHANTS OR PRODUCT TYPESCLARIFICATIONSMerchant IndustryPolitical Fund Raising/ Political ActionCommittees / Political Campaigns (all Types)Cannot promote anything illegal or brand damagingRestrictedPools and Hot TubsRestrictedPrepaid /Discount health plansMinimum 5 yrs. in business plus minimum 12 months satisfactory previous processingRestrictedPrepaid Gift cardsMinimum 6 months previous processingRestrictedPrepaid Phone Card SalesIncludes business primarily selling prepaid one-time use card, reloadable cards andvirtual card accounts.RestrictedProducts or services with UnreasonableGuarantees or claimsProhibitedPyramid Sales & SchemesIncludes opportunities focused on member recruitment with products or services ofquestionable value.ProhibitedRecurring BillingAgreement term 12 months. NO 3rd party Payments(refer to Bill Payment Services)RestrictedSalvia DivinorumScooters/HooverboardsProhibitedMinimum 1 yr. in business and 6 months previous processingSearch Engine Optimization(SEO)Security and/or Surveillance equipment andservice providersRestrictedRestrictedMinimum 1 yr. in business and 6 months satisfactory previous processingRestrictedShell BanksProhibitedSocial Networking SitesRestrictedSports Forecasting(MCC 5967/ 7995)(Also found in Gambling)RestrictedStorage & Warehouse CompaniesEstablishments primarily engaged in the renting or leasing of storage (or warehousingand storage of a general line of goods).RestrictedSurveillance Equipment(Excluding Home & Office Security Systems)Includes all eavesdropping equipment, spy equipment, cellular signal boosters andjammers.(Minimum 1 yr. in business and 6 months satisfactory previous processing)Restricted
PROHIBITED MERCHANTS OR PRODUCT TYPESCLARIFICATIONSTechnical Support Call CentersMerchant IndustryRestrictedTelecom Merchants and TransactionsPre-paid phone cards, re-chargeable phone cards, recurring phone services (MCC 4814and 4816)RestrictedTelemarketing companies offeringFree gift/prize or sweepstakes with purchase of product; chain letters; sale of anyproduct/service that is prohibited; Hodge podge product mix; solicitation with outboundtelephone calls via fax blasting, email spamming etc. (MCC 5965, 5966, 5967)RestrictedTimeshares & ServicesIncludes timeshare sales, rentals, fees, loan modifications, marketing, and all relatedservices.ProhibitedTobacco(Card Not Present)Includes all entities engaged in the sale of tobacco products via card not presentmethods (keyed). No CNP-E-CigRestricted(Annual registration/ LegalOpinion)Tobacco Merchants(Card Present)Includes merchants primarily engaged in the sale of tobacco products.RestrictedTrade with CubaProhibitedTrade/ Vocational SchoolsMinimum 1 yr. in business and 6 months satisfactory previous processingRestrictedTravel Agencies & Tour PackagesIncludes all travel and tour packages, discounted travel voucher and coupon programs.RestrictedTravel ClubsIncludes all destination packages, travel membership programs, point redemption andconversion offers.ProhibitedUnlicensed Intellectual PropertyUsed Car Sales(Excludes New Car Dealers)ProhibitedRestrictedRequires Letter of IntentIncludes all merchants primarily engaged in the sale of used vehicles. Requires letter ofstating the account will only beintent (deposits, repairs/service only) repairs and service only for TBBuse for repairs, deposits,service/laborVideo Streaming & Audiotext MerchantsIncludes phone and internet chat services, electronic bulletin boards, forums, sportsscores and odds.RestrictedVitamins, Nutritional Supplement BusinessesBusinesses primarily engaged in the sale of vitamins and nutritional supplements.RestrictedWeb DesignMOTO/ Internet require 1 yr. in operations plus minimum 6 months satisfactory previousprocessingRestrictedWeight loss Center and Programs(Card not Present-CNP)Restricted(Physician owned and operatedwith physician onsite)
!PROHIBITED MERCHANTS OR PRODUCT TYPESCLARIFICATIONSMerchant IndustryWeight loss Center and Programs(Card present only)Must be physician owned and operated with Physician onsite (registered nurse alsoacceptable)RestrictedWindow and Door Sales and Installation(Recommended-Copy of contractor license & contract with full terms and conditions)Restricted
PROHIBITED MERCHANTS OR PRODUCT TYPES CLARIFICATIONS Merchant Industry Direct Marketing - Outbound Telemarketing Merchants that solicit customers via outbound calls and mailings and typically include vitamins, cosmetics, etc. (including MCC’s 5965, 5966, & 59
