💳 Why does Stripe require so much information?
In the world of online payments, ensuring security and trust is crucial. Stripe, a leading payment processing platform, has built a reputation for delivering reliable and seamless payment solutions to businesses worldwide. However, alongside its convenience, Stripe implements strict risk assessment measures to protect both merchants and customers from potential fraud and other financial risks. These measures sometimes involve pausing or temporarily holding accounts, a move that can be frustrating for users. Nonetheless, such actions are essential for maintaining a secure ecosystem where transactions can be processed safely. By preventing fraudulent activity, mitigating chargeback risks, and complying with regulatory requirements, Stripe ensures the integrity of its services, protecting businesses and consumers alike from financial harm.
My payment or payout will be paused soon
If your Stripe account is facing an upcoming pause on payments or payouts, it indicates that Stripe is currently evaluating your business. To avoid disruptions, promptly check what information or documentation Stripe requires to validate your business by visiting this page.
The process may sometimes take a few days and involve some back-and-forth communication with Stripe's customer support. Patience and timely responses during this period are essential to ensure a smooth resolution.
In the meantime, we recommend connecting your PayPal account as a backup payment method. This ensures you have an alternative in place in case the resolution takes longer than expected and Stripe pauses your account as a precautionary measure.
How to avoid account suspension
Before starting to sell as a Stripe partner, it’s essential to take several key precautions to avoid account closures or disruptions. Stripe has strict risk management protocols to prevent fraud, financial crimes, and non-compliance with regulatory standards. As a merchant, adhering to these guidelines helps protect your business from unnecessary risks. Here are the most important things to consider.
Understand Stripe's Terms of Service
Compliance
Familiarise yourself with Stripe’s Terms of Service and Restricted Businesses list. Stripe prohibits certain activities like illegal transactions, high-risk financial services, or selling counterfeit goods. Non-compliance can lead to account suspension.
Clear communication
Ensure that your business model is accurately and transparently communicated to Stripe during the sign-up process. Misrepresenting your business type can lead to account reviews or pauses. This also extends to your online presence, including your website and social media profiles, which Stripe may review as part of its risk assessment. A mismatch between your stated business activities and your public-facing platforms can raise red flags and result in further scrutiny.
Manage risk of chargebacks
Minimise chargebacks
Excessive chargebacks are a red flag for Stripe. Ensure transparent payment policies, issue refunds when necessary, and offer clear customer service to avoid disputes.
Monitor account and communication with Stripe
Proactive account monitoring
Regularly check for any alerts or requests from Stripe via email and the Stripe dashboard. Ignoring compliance requests or failing to provide required documentation may result in account closures.
Transparent business changes
Notify Stripe of any significant business changes, such as changes in product offerings, geographical expansions, or processing large volumes of unexpected transactions.
Maintain a solid business structure
Legal and tax compliance
Ensure your business is legally registered and compliant with tax laws. Stripe may request verification documents such as tax IDs, business registration details, or personal identification.
Sustainable financial practices
Stripe may pause or review accounts that show signs of financial instability. Maintain a healthy cash flow and avoid risky payment behaviours, such as large volumes of refunds or unexplained spikes in transaction amounts.
Can Tixtree help me resolve an issue with Stripe?
Unfortunately, our ability to assist with Stripe-related issues is limited. While Tixtree provides a platform for managing ticket sales, Stripe operates independently as the payment processor. This means we don’t have access to your account details or Stripe’s internal decisions regarding your account.
Since your business relationship with Stripe is direct, any issues or requirements related to your Stripe account must be addressed between you and Stripe. We simply facilitate the connection for payment processing on our platform, but we cannot intervene or provide information regarding your Stripe account status. For assistance, we recommend contacting Stripe's support team directly.
