Stripe is often perceived as an easy to setup, all encompassing payment processor for online businesses, especially small online businesses. Their application process is clear, straightforward and convenient.
Like far too many things that seem too good to be true, that’s basically where the niceties end. Far too often people do not read the Stripe User Agreement/ Terms of Service to know what they’re getting themselves into. Much of the time, people coast along until something happens and by then its too late.
Audio Podcast:
Here’s how to contact Stripe:
Stripe Payments Company
354 Oyster Point Boulevard
South San Francisco, California 94080
Phone: 1-888-926-2289
Legal: notices@stripe.com
Stripe Dublin Headquarters
The One Building
1 Lower Grand Canal Street
Dublin D02 HD59, Ireland
+35319038449
This article seeks to demystify the user agreement to make it clear what you’re committing yourself to. Most importantly, if you’re already an entrepreneur with a Stripe agreement who finds himself/herself blocked by Stripe and your money, the goal is to help you locate resources to help you get your funds and give you alternatives to Stripe as your credit card processor.
Let’s take a deep dive together to demystify the agreement so you don’t get trapped. And if you’ve encountered issues, like Stripe blocking your, account, blocking you from receiving your funds, ghosting you or asking you to climb some mountain or jump through some hoop in order for them to talk to you, let’s review some of the options available to you to mitigate your issues and place you in the direction to recover your funds.
Let’s break all of this into small chunks of information so you can skip to the areas most relevant to you without having to a dissertation.
Note, as of May 2024, it seems Stripe is undergoing many changes within their user agreement so it’s of critical importance NOT to accept the terms by clicking ‘yes’ you agree until you’ve had a chance to read the user agreement or had an attorney read it on your behalf.
The Stripe Agreement
Section 1: Your Stripe Account
1.1 Registration and Permitted Activities
Text from the Agreement:
To use the Services, you must register for a Stripe account. When you register for a Stripe account, you agree to provide accurate, current, and complete information about yourself and to update such information as necessary to keep it accurate, current, and complete. You are responsible for all activity that occurs under your Stripe account, including all Sub-Accounts, and for maintaining the security of your account and the passwords. You may not use the Services for any illegal or unauthorized purpose, nor may you, in the use of the Services, violate any laws in your jurisdiction (including but not limited to copyright laws).
Data Involved:
- Personal Information: Name, address, email, and other contact details.
- Business Information: Business name, type, address, tax identification numbers, and other related details.
- Security Information: Username, password, and possibly two-factor authentication details.
Risks:
- Privacy: The sensitive personal and business information provided during registration needs to be protected from unauthorized access.
- Identity Theft: If account credentials are compromised, there is a risk of identity theft.
- Compliance: Users must ensure their activities comply with legal standards, avoiding unauthorized or illegal use of Stripe’s services.
Explanation:
- Accurate Information: Users must provide and maintain accurate information. Failure to do so can lead to account issues or suspension.
- Responsibility: Users are responsible for maintaining the security of their accounts, including all activities under their account.
- Legality: Users must use Stripe services within the bounds of the law, avoiding illegal activities.
1.2 Business Representative
Text from the Agreement:
You and your representative individually affirm to Stripe that (i) your representative is authorized to provide the information described in this Agreement on your behalf and to bind you to this Agreement; and (ii) your representative is an executive officer, senior manager, or otherwise has significant responsibility for the control, management or direction of your business.
Data Involved:
- Representative Information: Name, position, and contact details of the business representative.
- Authorization Documents: Proof of the representative’s authority to act on behalf of the business.
Risks:
- Verification: Ensuring that the representative is properly authorized to act on behalf of the business is crucial to avoid unauthorized actions or decisions.
- Data Integrity: Accurate representation is essential to prevent legal and operational issues.
Explanation:
- Authority: The representative must be authorized to bind the business to the agreement, ensuring they have the necessary authority and responsibility.
- Affirmation: Both the business and the representative confirm the representative’s authority, which helps in maintaining legal and operational integrity.
1.3 Your Stripe Account
Text from the Agreement:
We may require you to provide additional information or documents at any time, and failure to do so may result in the suspension or termination of your Stripe account. You agree to provide complete, truthful information in response to any inquiries we make.
Data Involved:
- Additional Documentation: Potentially includes financial records, identity verification documents, or business compliance documents.
- Inquiry Responses: Information provided in response to Stripe’s inquiries.
Risks:
- Compliance: Not providing required documentation can lead to account suspension or termination.
- Data Security: Sensitive documents and information must be securely handled to prevent breaches.
Explanation:
- Additional Information: Stripe may ask for more information to verify compliance or address concerns.
- Truthfulness: Users must provide truthful and complete information to avoid penalties or account issues.
