Stripe may shut down accounts for a variety of reasons, such as violation of its terms of service, suspicious or fraudulent activity, or failure to comply with regulatory requirements. If an account is shut down, Stripe will typically provide the account holder with a reason for the shutdown and information on how to appeal the decision or correct any issues.
Stripe may shut down an account for a variety of reasons, including but not limited to:
- Violation of Stripe’s terms of service: This can include activities such as using Stripe to sell illegal or prohibited goods, engaging in fraud or money laundering, or using the platform in a way that harms other users or Stripe’s reputation.
- Compliance with regulatory requirements: Stripe is required to comply with various laws and regulations, such as anti-money laundering (AML) and know-your-customer (KYC) laws. If an account holder is found to be in violation of these requirements, Stripe may shut down the account.
- High chargeback rate: As previously mentioned, high chargeback rate can indicate that the account holder’s business practices or products are not meeting customer expectations, or engaging in fraudulent activities.
- Suspicious or fraudulent activity: Stripe may shut down an account if it suspects the account holder is engaging in fraudulent activities such as using stolen credit card information, money laundering or phishing.
- Policy violations: Stripe’s policies include requirements for account holders to comply with certain laws, regulations, and industry standards, and not to engage in certain types of business or to provide certain types of products or services. If an account holder is found to be in violation of these policies, Stripe may shut down the account.
- Non-compliance with requests for information or documentation: Stripe may require account holders to provide certain information or documentation in order to verify their identity or comply with regulatory requirements. If an account holder fails to provide this information or documentation in a timely manner, Stripe may shut down the account.
It’s worth mentioning that Stripe is constantly reviewing and updating their policies, thus this list may not be exhaustive, and Stripe reserves the right to determine what constitutes a violation of their policies based on the specific circumstances of each case.
Stripe considers a variety of activities to be fraudulent, including but not limited to:
- Attempting to use stolen or fake credit card information to make payments
- Creating multiple accounts to bypass limitations or restrictions
- Using an account to sell counterfeit or pirated goods
- Engaging in phishing or other types of fraud
- Creating or using an account to launder money
- Attempting to evade detection or investigation of fraudulent activity
This is not an exhaustive list and Stripe reserves the right to determine what constitutes fraudulent activity based on the specific circumstances of each case.
Stripe may shut down accounts for chargebacks
if the account holder has a high chargeback rate. A chargeback is when a customer disputes a charge with their bank and requests a refund. This can happen if the customer is unhappy with the product or service they received, or if they believe the charge was unauthorized. If a large number of chargebacks occur on an account, it can be an indication that the account holder’s business practices or products are not meeting customer expectations. It also can indicate that the account holder might have been engaging in fraudulent activities, such as selling counterfeit or pirated goods. High chargeback rates can also increase Stripe’s own risk and costs, so they may shut down an account in order to protect their own business. Stripe’s standard chargeback rate is generally below 1% of overall transaction volume, but this varies by industry and region.
Can Stripe hold my money?
Stripe can temporarily hold funds in an account under certain circumstances. One of the reasons is to cover chargebacks or refunds that may occur. When a customer disputes a charge and requests a refund, the funds for that charge will be held in a reserve account until the dispute is resolved. This is to ensure that Stripe has the necessary funds to refund the customer if the dispute is decided in their favor.
Stripe may also hold funds in a reserve account if it suspects that an account holder is engaging in fraudulent or high-risk activities. This is to protect itself and its other users from potential losses due to fraud or other illegal activities. The funds in the reserve account may be held for a specified period of time or until Stripe is satisfied that the account holder’s activities do not pose a risk.
It’s worth mentioning that these holds are temporary measures that are put in place to protect Stripe and its users from potential losses, and Stripe will release the funds back to the account holder as soon as possible if the account is in good standing and if the reason for the hold no longer applies.
What are the prohibited items on Stripe?
Stripe considers certain items to be prohibited for sale on its platform. These include, but are not limited to:
- Illegal items: Any items that are illegal to produce, distribute, or sell under any applicable laws, regulations or guidelines.
- Counterfeit items: Any items that are designed to look like genuine items but are not genuine, and which are intended to deceive or defraud customers.
- Dangerous items: Any items that are dangerous or potentially harmful to customers, such as weapons, explosives, or hazardous chemicals.
- Intangible items: Any items that do not have a physical form and cannot be shipped to customers, such as digital downloads or software.
- Adult items: Any items that are intended for use by adults only, and which may not be suitable for children, such as adult entertainment or gambling-related products.
- Stolen items: Any items that are known or believed to be stolen.
- Regulated items: Any items that are subject to specific regulations and certifications, such as medicines, medical devices, or electronics.