Along with Square and PayPal, Stripe is one of the most successful online payment service providers. Thanks to its intuitive design and easy integrations, millions of active online accounts rely on Stripe’s service to process transactions.
However, Stripe users need to remember this PSP isn’t a neutral party. Stripe is a company (i.e., it wants to make money!). If Stripe fears your business will tarnish its reputation, it could easily deactivate your account. Unfortunately, many companies in the “high-risk” category have discovered this brutal fact the hard way.
Although Stripe account closures are usually absolute, there are ways you could recoup funds and stay in business if you’re in this situation. Even if you can’t reactivate your Stripe account, there are ways forward for your business.
Before going over what to do if Stripe kicks you off, you should understand why Stripe would put a merchant in this precarious position. Knowing why Stripe blocks accounts could help you avoid this scary scenario.
First, Stripe has a clear list of “high-risk” businesses that it doesn’t allow. You can find the complete list in Stripe’s Prohibited & Restricted Business section. While these industries could vary depending on your country, most involve selling illicit drugs, counterfeit items, or adult products & entertainment. You should review Stripe’s Terms & Services beforehand to see if your market is on Stripe’s “no-go” list.
Even if you have a “low-risk” business, there are other reasons Stripe may decide to terminate you. Most notably, merchants that have a high amount of chargebacks and complaints trigger a red flag. Stripe also monitors merchant volume for any suspicious activity. If there are sudden spikes in processing or unusually low volume, it may trigger Stripe’s security division.
Remember that Stripe doesn’t “have your side” when setting up an account. It can and will eliminate you if it feels you threaten its reputation. Whenever you work with third-party payment providers like Stripe, you must pay careful attention to its Terms and Services. You must also create a clear refund policy with customers to avoid abnormally high chargebacks.
If you get a termination notification from Stripe, it will likely come as an automated email. However, even if you get this message, your account termination will probably be swift. In worst-case scenarios, some merchants report their Stripe payment processor stops working unexpectedly.
Depending on how Stripe interprets your case, they may ask for official payment documentation or bank transactions to clarify your situation. However, don’t bet on Stripe, allowing you to defend your case.
Stripe often mentions that it will freeze your account for at least 90 days in its termination email. The primary reason is to have enough funds to resolve chargeback disputes while you’re barred from using your account. You will need to keep in touch with Stripe’s staff to get any remaining fees refunded to your bank account.
Seeing your Stripe account suddenly close is a terrifying experience. However, after the initial shock sinks in, you must act fast to protect your money, business, and reputation.
First, you should reach out to the Stripe team to clarify its decision. Since Stripe is such a large business, there are a few ways you could reach out to support members.
First, visit the company’s official “Contact Us” page and open an inquiry with the Help & Support team. You could also email Stripe at info@stripe.com or send a message on Stripe’s official Discord or Facebook.
Reaching out to Stripe ASAP is essential because team members can respond in a few working days. The faster you set this process in motion, the better your chance of resolving a ticket promptly.
As you try to reinstate your Stripe account, you need to use your PR skills to let customers know what’s happening. Be sure to send messages to anyone affected by the recent Stripe account closure and keep everyone in the loop on any progress. Being upfront and transparent is key to maintaining your business’s credibility.
If possible, you should consider migrating subscriptions from Stripe to another platform.
You shouldn’t bet on Stripe reinstating your payment account. While it would be great to go back to “business as usual,” you need to be proactive in seeking alternative platforms that are more attuned to your company.
To avoid future termination emails, those involved in “high-risk” industries should speak with a professional team like Shark Processing. Shark Processing helps many merchants on Stripe’s “banned list” continue to operate at total capacity. Since our team focuses on risky businesses, we know how to use e-payment processors without facing compliance issues.
Changing the company’s mind is challenging when you get on Stripe’s blacklist. While it’s not impossible to get off of this dreaded list, please remember you’re playing by Stripe’s rules. Even if Stripe permits your review request, you’ll need to provide many official documents and transaction data that prove you’re a legitimate business.
If Stripe isn’t interested in reviewing your business, the only other option is to file a lawsuit. Before you take legal action, schedule a consultation with a professional who has experience with similar cases. An attorney should know whether you have a legitimate claim against Stripe and whether it would be worthwhile to pursue.
If Stripe terminates your account, there’s a good chance other big-name PSPs will do the same. While these stylish fintech platforms are easy to get on, they have been known to kick off merchants with little warning. You always have to remember third-party PSPs are most concerned with their profitability, not yours.
Thankfully, there are ways for “high-risk” businesses to take advantage of convenient payment platforms such as Stripe provides. To enjoy the full benefits of fast and stress-free payments, you need the expertise of a team like Shark Processing. If you’re struggling to give your customers easy payment options, you should contact Shark Processing for a commitment-free consultation.
