Except stores aren’t banning the customers from browsing or building a cart. It’s only when someone goes to pay does the fraud detection run and block the transaction. What the US does allow companies to do, like Walmart, is run “background checks” on you before allowing you to cash a check. Over the years I’ve known many with problematic banking history or bad credit who would get denied from this.

I agree blanket bans like you bring up would be problematic and wrong, but I see nuance in using, say, the country of origin as one of the factors in their risk assessment.