
Cannabis merchant accounts can be terminated due to sponsor bank exits, network rule enforcement, chargeback thresholds, or compliance reviews. This page explains why shutdowns happen.
Many shutdowns occur because a sponsor bank changes its risk posture, not because a retailer violated state cannabis law.
When a processor loses its banking relationship:
Retailers often learn about shutdowns after transactions begin failing.
Because cannabis remains federally illegal:
Every payment relationship depends on a bank’s tolerance for federal risk exposure.
When risk appetite changes, programs end.