Can Credit Unions refuse to open a business checking account for my business based on what I'm selling?

I went to my credit union to open a business account for an online business I have that sells adult novelties, nothing you can't find in your local Spencers gift store. After opening the account, they then called me the next day and said that I couldn't have an account with them because of what I sold. That feels like some kind of discrimination to me.
Can Credit Unions refuse to open a business checking account for my business based on what I'm selling?
You'll find that this is a common case in most banks, though it does not necessarily qualify as discrimination. Banks are wary of dealing with online adult merchants because of two things. 1. If you're accepting credit cards, an online business is a card-not-present transaction. Which means there is no physical card involved in the transaction, which increases the likelihood of fraud. 2. Adult (along with gaming, pharmacy, moto and travel) falls into the high-risk category. What you might want to look for is a merchant account instead of a business checking account. Consider also opening one online and with an offshore merchant account provider. I use adultmerchantpay.com, you might want to check them out.
Reply:A company can refuse to business with whoever they want unless they are discriminating based on the standard interpetation of discrimination. However, they chose not to do business with you based on your business and what it does, not because you are any sort of protected class. That would be like saying a bank is discriminating against mobsters by refusing to business with them.
Reply:Discrimination laws in the US are based on proving discrimination against a protected class such as race, religion or gender. Unfortunately, adult novelty business owners are not a protected class so you aren't being discriminated against.





A business can choose to do business with whomever they wish. If someone walks into my coffee shop, I can refuse to serve them...I don't even need a reason. So, yes, the credit union can refuse to do business with you and there is really nothing you can do about it but find another bank.