Why has my Stripe account been banned?

Stripe is a popular payment platform that allows online merchants to accept payments from customers around the world. However, Stripe also has strict policies and terms of service that merchants must comply with, or risk having their accounts suspended or even terminated. In this blog post, we will explore some of the common reasons why Stripe would ban your account, and what you can do to prevent or resolve such issues.

Common reasons for account suspension or termination

According to Stripe’s documentation1, a dispute occurs when a customer contacts their bank to contest a payment to you for one of a number of possible reasons, such as unauthorized transactions, fraud, product quality issues, or customer dissatisfaction. Disputes can result in chargebacks, which are fees that Stripe deducts from your account balance to cover the disputed amount. If you have too many chargebacks or disputes, Stripe may suspend or terminate your account until you can reduce your chargeback rate. Stripe sets a chargeback-to-transaction threshold of 1%, and will suspend or terminate your account if you exceed that threshold2.

Another reason why Stripe would suspend or terminate your account is if you engage in fraudulent activities, such as using stolen credit cards, creating fake orders, or manipulating reviews. Fraudulent activities can harm your customers, your payment providers, and Stripe, and can result in legal actions against you. Stripe has various tools and methods to detect and prevent fraud, such as Stripe Fraud Protect, Stripe Risk Analysis, and Stripe Trust and Safety team. If Stripe suspects that you are involved in fraud, they may suspend or terminate your account immediately, and may also report you to the authorities3.

Another reason why Stripe would suspend or terminate your account is if you sell products or services that are considered high-risk or prohibited by Stripe’s Acceptable Use Policy. These include products or services that are illegal, fraudulent, infringing, harmful, offensive, or otherwise violate the rights of others. Examples of such products or services are firearms, tobacco products, adult content, CBD products, counterfeit goods, and stolen property. You can view the complete list of restricted businesses on their website4. If Stripe detects that you are selling such products or services, they may suspend or terminate your account without warning, and may also report you to the authorities.

Another reason why Stripe would suspend or terminate your account is if you have geographical inconsistencies in your account activity. For example, if you are located in the United States but access your Stripe account from India, this is considered a remote operation and could get your account suspended. This is because Stripe needs to verify your identity and business information, and ensure that you comply with the local laws and regulations of the countries where you operate. If you need to access your Stripe account while traveling, you should inform Stripe beforehand and provide them with the necessary documentation2.

Another reason why Stripe would suspend or terminate your account is if you have a sudden or significant increase in your sales volume. For example, if your sales volume reaches $25k/month, Stripe may suspend your account for further review. This is because Stripe needs to provide you with a real merchant account and ensure that you have the proper licenses and permissions to sell your products or services. Stripe may also ask you to provide additional information or evidence to verify your business and transactions2.

How to prevent or resolve account suspension or termination

If you want to avoid having your Stripe account suspended or terminated, you should follow these best practices:

  • Always provide accurate and clear product descriptions, images, and prices, and deliver your products or services on time and in good condition.
  • Always have a clear and fair refund and return policy, and communicate with your customers promptly and professionally.
  • Always use secure and reliable payment methods, and verify your identity and business information with Stripe.
  • Always monitor your chargeback and dispute rate, and try to resolve them with your customers or dispute them with Stripe.
  • Always check the Stripe Acceptable Use Policy before you start selling any products or services, and make sure that you have the proper licenses and permissions to sell them.
  • Always inform Stripe if you need to access your account from a different country or region, or if you have a significant change in your sales volume.

If your Stripe account has been suspended or terminated, you should take these steps:

Conclusion

Stripe is a great payment platform for online merchants, but it also has strict policies and terms of service that you must comply with. If you violate any of these policies or terms, you may face account suspension or termination, which can affect your business and customers. To prevent or resolve such issues, you should follow the best practices and steps outlined in this blog post. If you need any help or advice on how to deal with Stripe account suspension or termination, feel free to contact us. We are here to help you.

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