Prohibited and Restricted Businesses

Last Updated: October 22, 2025

Effective Date: October 22, 2025

Compliance Notice: Use of PayWall services for any prohibited activities will result in immediate account termination. Restricted business types require prior written approval before service activation.

Overview

This document outlines business types, products, and activities that are either prohibited or restricted from using PayWall's payment processing services. All merchants must comply with these guidelines to maintain service eligibility.

These restrictions are based on legal requirements, regulatory compliance, risk management, and commercial considerations across multiple jurisdictions where PayWall operates.

High-Risk Jurisdictions and Persons

Prohibited Jurisdictions

PayWall services are prohibited for persons located in, resident in, or citizens of the following jurisdictions:

  • Cuba
  • Iran
  • North Korea
  • Syria
  • Crimea, Donetsk, and Luhansk regions
  • Any other jurisdiction subject to comprehensive sanctions

Sanctioned Persons

Services are prohibited for individuals or entities on restricted party lists maintained by:

  • US Office of Foreign Assets Control (OFAC)
  • US Department of Commerce (Denied Persons List, Entity List)
  • European Union sanctions lists
  • United Nations Security Council sanctions
  • UK HM Treasury financial sanctions

Prohibited Business Categories

The following business types are strictly prohibited and may not use PayWall services under any circumstances:

Illegal Activities

  • Any illegal products and services
  • Illegal drugs and controlled substances
  • Substances designed to mimic illegal drugs (including synthetic alternatives)
  • Equipment intended for manufacturing or using illegal drugs
  • Fake identification or reference services
  • Document fraud services

Adult Content and Services

  • Pornography and adult entertainment
  • Escort services and prostitution
  • Adult live chat and webcam services
  • Sex toys and adult novelties (jurisdiction dependent)
  • Adult dating services with explicit content

Gambling and Gaming

  • Online gambling and betting
  • Casino games and slots
  • Lottery and sweepstakes with monetary prizes
  • Fantasy sports with cash prizes
  • Skill-based games with monetary rewards
  • Cryptocurrency gambling

Financial Services

  • Payday loans and high-interest lending
  • Cryptocurrency mining and staking operations
  • Unlicensed money transmission services
  • Investment schemes without proper licensing
  • Foreign exchange (forex) trading platforms
  • Binary options trading

Dangerous Materials

  • Weapons, firearms, and ammunition
  • Explosives and incendiary devices
  • Chemical and biological hazardous materials
  • Radioactive materials
  • Surveillance equipment and wiretapping devices
  • Telecommunications jamming equipment

Intellectual Property Violations

  • Counterfeit goods and trademark infringement
  • Pirated software and digital content
  • Unauthorized streaming services
  • Copyright-infringing materials
  • Brand impersonation services

Harmful Activities

  • Services promoting violence or harm
  • Hate speech or discriminatory content
  • Cyberbullying or harassment platforms
  • Identity theft services
  • Credit repair scams
  • Pyramid schemes and unauthorized MLM

Restricted Business Categories

The following business types require prior written approval and enhanced due diligence before service activation:

Content Creation Platforms

Platforms where users can monetize content creation, including subscription-based models.

Requirements: Prior written approval required. Must demonstrate content moderation and compliance measures.

Regulated Industries

Industries subject to specific regulatory oversight and licensing requirements.

Requirements: Must provide valid licenses and regulatory compliance documentation.

Cryptocurrency and Digital Assets

Cryptocurrency exchanges, wallets, and digital asset trading platforms.

Requirements: Enhanced due diligence and regulatory compliance verification required.

Travel and Tourism

Travel agencies, charter services, and reservation platforms.

Requirements: Valid business licenses and bonding requirements must be met.

Crowdfunding and Fundraising

Platforms facilitating fundraising activities and donation collection.

Requirements: Compliance with fundraising regulations and transparency requirements.

Multi-Level Marketing

Network marketing and direct sales businesses with recruitment components.

Requirements: Must demonstrate legitimate product sales and compliance with FTC guidelines.

Application Process: If your business falls into a restricted category, contact our compliance team at compliance@paywall.app before submitting an application. Include detailed business information and required documentation.

Jurisdiction-Specific Restrictions

Additional restrictions apply based on geographic location and local regulations:

United States
Cannabis (state-level compliance required), Tobacco products online sales
European Union
Certain dietary supplements, Unlicensed pharmaceutical products
Canada
Mortgage consulting services, Certain cannabis products
Australia
Interactive gambling services, Certain therapeutic goods
Brazil
Genital prosthetics and sex accessories
India
Alcohol sales, Dating services, Certain religious materials
United Kingdom
Unlicensed consumer credit, Certain gambling activities

Additional Use Prohibitions

Prohibited Uses Regardless of Business Type

  • Providing false, misleading, or incomplete information
  • Processing transactions on behalf of undisclosed third parties
  • Processing payments without legitimate goods or services
  • Money laundering or structuring transactions to avoid reporting requirements
  • Circumventing card network rules or regulations

Account Monitoring and Enforcement

PayWall continuously monitors merchant accounts for compliance with these restrictions. Violations may result in:

  • • Immediate account suspension or termination
  • • Withholding of funds pending investigation
  • • Reporting to relevant regulatory authorities
  • • Legal action for breach of terms

Questions About Business Restrictions?

Contact our compliance team for clarification on business eligibility or approval requirements.