My payment gateway froze my funds, what’s a better option?

The Risk of Frozen Funds

Getting your funds frozen by a payment processor can be a scary and frustrating experience. Many business owners assume that when they use popular payment processors, their money is both safe and theirs. Unfortunately, that’s not the case.

Most online payment processors are custodial gateways, meaning they have full control over your funds until the money is transferred out of your account. This applies to both traditional merchant payment processors and crypto payment processors.

If you engage in activities they consider risky, such as selling high-risk products (CBD oil, supplements, adult products, digital content), receiving too many customer complaints (even false ones), or triggering internal security flags, they can block your access to funds that rightfully belong to you.

For business owners, this poses a serious risk. The question becomes: how do you prevent frozen funds and account holds?

Switching Payment Methods to Protect Your Business

The key is to switch payment methods if you have any concerns about account holds or withheld payouts. Even if you’re not selling high-risk products or receiving frequent complaints, your money is still controlled by a third party, whether you like it or not.

If you operate a brick-and-mortar store, the simplest solution is to encourage customers to pay with cash. Cold, hard cash is in your hands the moment the transaction is complete, making it one of the most secure payment methods available. Of course, cash isn’t an option for online transactions.

Why Cryptocurrency Is a Strong Alternative

That’s where cryptocurrency payments come in. Like cash, crypto can be highly secure, but it has its own pitfalls. Custodial crypto payment processors (like BitPay or Coinbase) still exist, meaning they can hold or freeze funds just like traditional payment processors.

The solution is to use a non-custodial crypto payment processor.

What Is a Non-Custodial Payment Processor?

Non-custodial payment processors are unique to cryptocurrency and don’t exist for traditional money. They send crypto payments directly to your wallet without ever holding the funds. This means that, even if they wanted to, the processor cannot block your transaction. It occurs as a normal blockchain transfer, bypassing third-party control entirely.

Best Non-Custodial Payment Processors

1. Blockonomics – One of the best and easiest-to-use non-custodial payment solutions. It supports Bitcoin, Bitcoin Cash, and USDT payments, sent direct to wallet. Setup is simple, and their support team is responsive if issues arise. Because funds never pass through their custody, there’s no risk of freezes. They also have a strong track record of working with high-risk merchants.

2. BTCPay Server – Like Blockonomics, it’s direct-to-wallet and supports a wide range of cryptocurrencies. However, it requires significant technical setup and is best suited for experienced users or businesses with in-house developers.

Final Thoughts

At the end of the day, if you’re at all concerned about your money being held by a third party, switch to a non-custodial payment processor. This applies whether you currently accept traditional currencies or cryptocurrencies.

For most businesses, Blockonomics is the top choice. They’re fully non-custodial, offer reliable software, and provide responsive support.

If you’ve experienced frozen payments before, don’t let it happen again. Take control of your sales, and keep your money where it belongs: in your hands.

Quick Recap

Custodial payment processors control your funds until withdrawal.
Frozen funds can happen for many reasons—sometimes unfairly.
Cash is safest for in-person payments, but crypto is best for online.
Use a non-custodial crypto payment processor like Blockonomics or BTCPay Server for instant, direct-to-wallet payments.