Compliance & Legal Requirements

Which Products and Industries are Prohibited?

Certain products and industries may be considered prohibited for card processing due to bank requirements, card network rules, and legal or regulatory obligations. These rules can vary by jurisdiction and by banking partner, and eligibility is always confirmed through underwriting.

This list is constantly changing based on bank risk appetite, card network guidance, compliance standards, and regulatory updates. So even if your industry appears below, you should still apply. In many cases, underwriting can review your specific business model, offer structure, and fulfillment approach to confirm what is possible.

Also note: if a business model is truly prohibited, it is typically prohibited across most (and often all) reputable merchant service providers because the limitations come from banks and card networks, not the provider itself. That said, we still encourage you to apply with Easy Pay Direct, because we can confirm eligibility accurately, explain the outcome clearly, and identify any available options when possible.

Prohibited (typically not eligible for card processing through our banking partners)

  • Bowling Alleys

     

  • Car Pooling
  • Car Rental
  • Cleaning/Janitorial Services/Home Cleaners
  • Construction/Contractors
  • Discount Buying Club
  • Education/Tutoring
  • Electrician/Electrical
  • Financial Services – Remittance
  • Firearms
  • Grocery Stores
  • Health Supplements
  • Home Security/Surveillance
  • HVAC
  • ID Background Check
  • Landscaping/Lawn Care
  • Liquor/Package Stores
  • Magazine Subscriptions
  • Marijuana / Cannabis
  • Movie Theaters
  • Nutraceutical – Diet Memberships (Trial/Recurring)
  • Nutraceutical – Muscle
  • Nutraceutical – Teeth Whitening
  • Peptides
  • Pet Care – Information Product
  • Physical Medical/Physicians
  • Property Management
  • Psychics
  • Roofing
  • Salon (Independent Hair Stylist)
  • Salon (Not Independent Stylist)
  • SEO/Hosting
  • Smoking – Herbals (K2, “Potpourri”, etc.)
  • Smoking – Hookahs
  • Smoking – Marijuana
  • Smoking – Other
  • Software Sales – Anti-Virus
  • Towing & Roadside Assistance
  • Travel – Cruise Bookings
  • Travel – Travel Clubs (Discounts)
  • Travel Without Airfare
  • Trucking/Logistics

If you’re unsure where your business fits, apply anyway. Underwriting will review your business model (including your offer, billing method, fulfillment timelines, refund policy, and marketing approach) to determine what is approvable through our banking partners.

What Marketing and Advertising Compliance Rules Apply?

Marketing and advertising related to card processing must accurately represent products, services, pricing, and outcomes. Claims must align with actual business practices and comply with card network, regulatory, and consumer protection standards.

Misleading claims, unclear billing terms, or inconsistent disclosures can increase Chargebacks risk and trigger account reviews. Marketing practices are often evaluated during Underwriting and ongoing monitoring.

Easy Pay Direct helps merchants understand why accurate marketing disclosures matter but does not approve advertising content.

What Refund and Return Policies are Expected?

Clear and accessible refund and return policies are expected as part of card network and bank requirements. Policies should accurately describe eligibility, timelines, and methods for refunds and be visible to customers before purchase.

Consistent refund practices help reduce Chargebacks and support compliance. Refund policies are reviewed during Underwriting and may be monitored over time.

Easy Pay Direct helps merchants understand policy expectations but does not set refund rules.

What Terms of Service Requirements Apply to Merchant Accounts?

Terms of service are expected to clearly define the relationship between the business and its customers. This typically includes billing terms, refund policies, delivery expectations, dispute resolution, and customer responsibilities.

Terms should be accurate, accessible, and aligned with actual business operations. Inconsistencies between terms and practice can increase risk during Underwriting or monitoring.

Easy Pay Direct helps merchants understand why clear terms matter but does not draft or approve legal documents.

How Does Chargeback Compliance Work?

Chargeback compliance involves responding to disputes according to card network rules and within required timeframes. This includes submitting documentation, following dispute workflows, and monitoring dispute trends.

Failure to meet chargeback compliance requirements can increase risk exposure and lead to additional monitoring or remediation requirements. Compliance expectations are set by card networks and enforced by banks and processors.

Easy Pay Direct helps merchants understand dispute processes and compliance expectations but does not control dispute outcomes.

What is EMV compliance, and do I need to be EMV compliant as a merchant?

EMV compliance means your business can accept chip-based card payments using an EMV-capable, certified payment terminal (or POS) for in-person (card-present) transactions. EMV stands for Europay, Mastercard, and Visa, and it refers to the global standard for chip cards and chip-capable terminals managed through EMVCo.

With EMV, the customer typically inserts (dips) the chip card into the terminal (or uses contactless tap when enabled). The chip helps reduce counterfeit fraud because it generates transaction-specific security data that is much harder to copy than magnetic stripe data.

Do I need to be EMV compliant?

If you accept in-person card payments, you should be EMV-capable.

In the United States, the major card networks implemented an EMV fraud liability shift starting October 1, 2015 for many card-present scenarios. In simple terms:

  • If a customer has a chip card, but a merchant processes the transaction using magnetic stripe on a non-EMV terminal, and the transaction turns out to be counterfeit fraud, the merchant may be held liable via a chargeback because the merchant was the party that had not adopted chip acceptance.

Important clarification: EMV is mainly about counterfeit fraud on card-present transactions. It does not mean “customers win every dispute for any reason.” Chargebacks can still happen for many reasons (refund disputes, goods not received, friendly fraud, and more). EMV primarily impacts who eats the loss in specific counterfeit fraud situations.

Does EMV replace PCI compliance?

No. EMV compliance and PCI DSS compliance are different. EMV helps reduce certain types of card-present fraud. PCI DSS is a broader security standard focused on protecting cardholder data and systems. Even if you are EMV-capable, you still need to follow PCI requirements based on how you store, process, or transmit card data.

How to become EMV compliant

If you take in-person payments, becoming EMV-ready usually means:

  1. Use an EMV-capable terminal or POS (chip dip and ideally contactless tap).
  2. Ensure the device is properly certified and configured with your processor/gateway setup.
  3. Train staff to dip or tap first and understand when “swipe fallback” is appropriate.
  4. Keep the terminal software/firmware updated (updates can affect security and acceptance).
  5. If you also sell online, treat that separately: EMV does not apply to ecommerce checkout.