Update: This post was originally written back in 2014. A few hours after this was published we were contacted by various people at Stripe and got our account reinstated. And we have had no problems with them since. Skip down to the follow-up.
Why We Chose Stripe
We have heard a lot about Stripe in recent years, but as a European company, we couldn’t sign up for a long time. Not until they finally started accepting UK based companies. We have been a high volume PayPal user – both as a merchant and a buyer – since 2007, with over a million dollars traded on their platform. We had our fair share of disputes and long chats with the PayPal support team, but there wasn’t anything unmanageable.
There are two major problems with PayPal though:
- Their reputation, a lot of clients tell us that they would like to avoid paying with PayPal, at all costs.
- Their API is a nightmare; it’s overcomplicated and lacks features that should be default in 2014. Long story short, we were excited to build out Kinsta’s credit card acceptance program with Stripe.
The signup process is easy, although you have to send in a lot of documents, that’s understandable. While you’re waiting for the confirmation of your live account, you can already start building your client for their API and they provide libraries for the most common languages, which are written based on modern programming standards and as a result of that, they’re really easy to work with. That’s not a surprise, as Stripe was born out of frustration of the founding team with payment processors available in those days, they set out to disrupt the industry.
And they did: the API doesn’t feel like it’s only an afterthought like it does with PayPal, it’s a real pleasure to work with. Setting up and starting to receive payments with Stripe is easy.
Then the Problems Start
I can’t remember when was the last time we had to deal with a fraudulent payment online, maybe we’re lucky (or maybe PayPal’s fraud protection is not that bad after all). About a week after we started using Stripe (among PayPal and Bitcoin) on our site, the first scammer arrived. The funny thing is that he paid for the service (apparently with a stolen credit card) and never even used the service! A week after that payment was charged back and as it was already deemed suspicious by our team, we refunded it immediately.
As the number of our transactions increased, so did the fraudulent activity. Again, it’s strange that except one person (who tried to use an account for email spamming, but he was caught and banned in no time) all the stolen credit card abusers just wanted to pay us the money and then do nothing, it just seems illogical to me. If they wanted to test a bunch of card numbers, they could’ve done it with a service that costs $1 or so, and if they wanted to use it for spamming or something else, why didn’t they at least try to do it?
Unfortunately, Stripe has a chargeback fee of $15 so we were losing money on each transaction that, in my opinion, should’ve been stopped by Stripe even before they happened. For example, there was a guy who used the same email address and tried cards from 3 different continents in a span of 15 minutes. Unless he’s the Flash, that’s not really possible and it’s a huge warning for all payment processors I know of, yet Stripe didn’t blink an eye.
As we were losing money and Stripe wasn’t providing any help to stop these whatsoever, we set out to find a company who specializes in online fraud prevention. Here are a couple of them that we heard good things about but didn’t have a chance to check them out yet: minFraud by MaxMind, Sift Science and Signifyd. They’re very affordable, even for a small business. I’m really not sure why Stripe doesn’t have a partnership with any of these companies, it seems like a no-brainer for me.
Before we could finish the implementation of any of the above-listed services, one night (and I’d like to underline the night part) we received an email from Stripe, out of the blue, that stated:
Thanks for signing up with Stripe!
Unfortunately, at this time we will need to stop offering service for kinsta.com. Currently, Stripe can only support users with a low risk of customer disputes–after reviewing your submitted information and website, it does seem like your site presents a higher level of risk than we can currently support. Unfortunately, we will be unable to accept any additional payments on your behalf.
And that was it.
I’d like to emphasize that none of our legit users disputed anything, ever, only the stolen credit card owners requested a chargeback through their banks, which is what you’d expect. What I did not, however, expect from Stripe in any situation is that they’d just close down our account, in the middle of the night without fair notice. Or help. And that goes in the face of everything that we experienced with Stripe prior to that.
They could’ve given us advice on how to minimize frauds, what we could have changed in our form or anything. Plus a warning like “if this continues, we will have to suspend your account” a couple of weeks before the final decision would’ve been nice, too. On top of all that they’re not replying to inquiries about the issue. This is a perfect case study of how not to handle customer relations.
Is the problem with us? After searching on Google for a bit, it turns out that this is a rather usual way to do business at Stripe nowadays. See here, here, here and here. And if you need more, just do a search yourself and pay extra attention to the comment sections.
Turns out we’re lucky, we have programmers and can move to another API in a short time. When everyday people who sell and ship tangible products get scammed, it can break their whole business and sometimes their lives too (as we’ve read in the topics linked above). To think that implementing a good fraud detection system could solve all this, yet they don’t do anything about it is mind-boggling.
Not long ago Stripe was just a startup happy for all new clients, set out to disrupt the way PayPal handled customer care and business in general. A few years in and they’ve become the same faceless enterprise. Even if it’s hard as you scale, you should never lose sight of your initial goals so that you can keep true to yourself and provide the value that users signed up for in the first place. This should be the most important takeaway for everyone dealing with customers, including Kinsta.
When you’re building a company that you’d like to last a long time, don’t forget that your current small clients (and I’m not arrogant enough to consider ourselves anything other than tiny in Stripe’s eyes) can grow huge in no time, after all this is the Internet we’re talking about! We’re living in the age of hyperscaling.
It’s also important that as a startup you provide multiple payment options for your clients. Not everyone likes PayPal but not everyone trusts online merchants with their credit cards – and then there are those who like to use Bitcoin. If you’re starting a business nowadays it’s better to be prepared for the “next big thing”. Bitcoin could be one of those.
We sincerely hope that Bitcoin (or something else based on the groundwork laid out by Bitcoin) will get mainstream in the coming years, it makes all this so simple (no disputes, no chargebacks, ridiculously low fees). For now though we’ll talk to a couple of other credit card processing companies (but we’re leaning towards Braintree) and update this post once we have a solution. Until then we can only advise you to stay away from Stripe, they’re not the great startup they once were.
Follow Up – A Few Hours Later
We all make mistakes. We’re just a small hosting startup yet we make mistakes every now and then, I can imagine how hard it can be to look after hundreds of thousands of customers. That, though, is not an excuse, you have to be proactive and if you make a mistake you better own up to it and learn from it.
That’s exactly what Stripe did and I’m happy to say that we got our account reactivated and a lot of friendly people from the company reached out to us and made sure we don’t feel left behind. I even had the chance to chat with Patrick Collison, co-founder of Stripe and Andy Young, head of Stripe’s UK division. These guys are building a company that is valued well over a billion dollars yet still took the time to contact us personally, now that’s exemplary customer care.
When you’re dealing with a lot of clients you have to have a (high) level of automation otherwise you’d have to operate a customer support team so large that it could fill a city. Automation is never perfect and as someone who spent five years in the search engine optimization (SEO) business, I’m no stranger to getting screwed by an algorithm.
In Google’s case, we were used to not being able to reach out to anyone and our only option was to dust ourselves off and start over. However, I don’t expect the same from a company that we are a paying customer of. That’s what hurts the most in my opinion: not being able to get help for your problems and the lack of communication from your business partner.
If you’re dealing with customers directly, customer care is everything, even more so in the modern days of social media. Stripe is not the only payment processor online and just like they grew up in the shadows of PayPal (which didn’t provide adequate customer support and made it really hard for developers to integrate their services) they can be knocked out by a current or future competitor that may provide better support and/or a better product at the same pricing levels. In today’s all connected world giants are rising and falling every day.
It’s a fact that bad news and bad reviews spread much faster than good ones. You have to monitor social media as much as you can. The discussion about your brand is happening whether you like it or not, the only choice you have is to join or look the other way and pretend that social media doesn’t exist. Now if you’d like to build a longterm business it’s not really a choice.
In order to a startup to succeed, in my opinion, you have to have three things: meritorious support, one of the best products (or services) in your niche and competitive pricing.
Customer support is everything though. It is possible that the founders and the management didn’t even know about the issues customer face when trying to reach the support team. Or that overnight, immediate account closures happen at all. It’s important to directly ask your clients for feedback every now and then and work together with them to make your product better.
The industry Kinsta is in (web hosting) is infamous for abysmal customer care. I guess in the old days it was easy to put together an okay(ish) server box and put as many clients on it as possible, take their money and when they complained you made them feel like they aren’t really entitled for any support because the service is so cheap.
Even though Kinsta provides the best web hosting performance among all of our current competitors, that’s only 10% of the recipe to success. I’d say added value (backups, security, custom admin features, etc.) is another 10% and the other 80% is customer support. Everyone who knows Linux can put together a hosting server, some of them can even build outstanding servers, but if they don’t provide fanatical support (I hope Rackspace won’t sue us for using their trademarked term…) it’s simply not enough.
As I mentioned earlier, we do really like Stripe. As the lead developer of our team, I’d say it’s the best thing that happened to online payments since PayPal. They made a mistake, maybe a tiny one for them, but a huge one for us and when I called them out on it they owned up to it and did everything in their power to fix it. I’m happy to call them a business partner.
Update: Fast forward 5 years and we are still happy with Stripe. In fact, you can check out how we’ve reduced credit card fraud by 98% using Stripe Radar.
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I am one of the affected customers…API is awesome and you can be up and running in no time….but my experience so far terrible. I gave a second chance way too many times and had endless chats with them. They do not care about fraud. I asked to implement 3D secure but seems they do not want to hear about it at all.
Braintree now belongs to paypal, so yes please update us once you are using them, I am really interested also. Our business is from UK too.
Yep I read your article. Did you switch on the address verification feature on Stripe? I was recommended to switch that on however I’m not sure how good that is outside the US & UK :-/
Which company do you use now?
Thanks for stopping by! Mark
Nothing yet…stuck with paypal, but I think we will use bitcon (coinbase or bitpay seems the best option right now) but I need an alternative for card payments. I was thinking on Paymill, but they rejected my application since my company is in the UK and I am a resident on Spain…after loads of paper work…
We’re using Coinbase for BTC payments, it’s great! However now that we have access to Stripe’s Bitcoin beta program too, I’ll have to check that out. Hopefully it integrates well with their CC payment processing solution.
sounds good I will check it , thanks!
hi.so do i have a quick question.i’m from Italy, have my LTD in UK, and just a card where I can put my cash in UK.does stripe let me do that, or have to find another way?thanks for responding
you need a UK bank account
Wow that sucks Mark! I have used Stripe on a couple projects and fell in love with them. But then again I didn’t have to deal with support/fraud either. I will definitely double think about using Stripe in the future.
I currently use Stripe integrated with Freshbooks for all of my invoicing. I wonder if Freshbooks and Stripe have a special fraud agreement? Because I would think Freshbooks is a pretty heavy user when it comes to processing Stripe transactions for small businesses.
Brian, I assume that’s a completely different case as you only send the payment forms to those that you know… for us, however, it’s “wide open” for everyone and the feature that Stripe makes it so simple for people to pay unfortunately also helps scammers get through easily. We’ll figure something out though. Cheers!
Stripe is excellent with any invoicing tool
But a payment gateway is not the same thing and invoice sent to somebody know.
Have you seen that FreshBooks is now offering their own payment system that competes with Stripe adding additional security and competing with stripe price wise it’s not bad. You might want to look into it. I love FreshBooks but Xero or Xero + Harvest I have found them to be fantastic.
One thing that I have tried and it’s actually worked out really well he is using a WAF like Sucuri’s web firewall then blocking the ability for Proxy’s or to (I hate to say it but) block certain countries from filling out forms.
I still use Neustar The price is low and it works beautifully. American Express also has a fantastic system.
Can I ask how your systems been working it’s been in place for a while?
All the best,
i have had similar experiences but with paypal. it felt like they were trying to kill of my business.
All that happened was one affiliate i had approved in digi results was fraudulent. Again, instead of trying to work with me they were just adamant that a guy selling “how to” seo courses was high risk.
At that time i needed to have paypal, my products and affiliate sales were all coming via jvzoo and warrior plus and i had no option.
Over the years it cost me 10,s of 1000’s of dollars, from using other peoples paypal accounts, being too worried to do heavyweight launches in case i lost another paypal account (and my business as a result), delays in doing product releases to my own list of subscribers, never contesting disputes no matter how wrong they were, and just trying to keep myself under the radar basically.
Eventually, working with partners with long term high volume paypal accounts for major launches which cost me half my launch profits (well into 5 figures each time)
Its disgusting, and the irony is that they actually said i was high risk as i am only selling online.
Anyone know of any retail PayPal stores anywhere?
But its time for a viable alternative, its 2014 and most affiliate and product launch platforms are still playing to the tune of PayPal, and unfortunately it seems stripe maybe going the same way.
The financial institutions that should be helping business grow are dictating if that business can or not.
And it all started with my first SEO course and being naive to not think anything would go wrong with approving affiliates inside established JV and product selling platforms.
Hey Tony, I’m really sorry to hear that. We’ve been in the SEO business too but only doing service type of work for large(r) companies, in the 5 years we did that I think we only had a handful or transactions that PP investigated. Nothing serious though; although I’ve heard similar stories to yours a lot so I think we were just lucky to fly under the radar or something.
These days I’m turning into a bitcoin evangelist because it’s a technology that solves all these problems in an elegant way. If only more people got involved it would become a viable alternative very soon. As you say it’s really time for a change, I don’t really care if it’s bitcoin or not, just let’s get rid of this stupid banking system and credit cards. :( Best wishes with your future endeavors!
First let me apologize for this long post. Hopefully there something in here useful to you That’s useful to you.
I Have dealt with stripe and in the beginning like you said they were hard to get a hold of but very nice about any incidents only three have ever occurred. you might want to check out square up they have a system identical costs to stripe in many ways however there is more user-friendly. 2checkout is similar as well but I would put yourself with Accertify Inc it combines all the tools that you are talking about and more and it works it’s backed by American Express a company that does not leave you stranded.
Like yourself because of the seriousness of a chargeback over three companies we have implemented a system built just to prevent fraud by American Express Using neustar with Accertify Inc.
The amount of people that are doing malicious things like you described and are finally being caught by we’ve actually prosecuted the people doing the theft. I’m not saying this is what you want to do for work but at least it gives them something to think about.
http://www.accertify.com/Partners/Service-Providers/ people things they have caught since getting larger is amazing used in conjunction with http://www.neustar.biz/resources/resource-category?category=fraud_detection last but not least in this will probably put too many URLs in my reply but card not present is a fantastic source for secure payment options now you can put these on top of Stripe, 2Co, and obviously stripes business model caught on they just took another 7 million in financing on December 4 http://www.cnp-solutions.com/fraud–risk-mitigation.html
last but not least because stripe is now the guys who are funding Facebook and Apple Pay the not care about the little guy let’s face it they really don’t. I’m not knocking them for anything other than the way that they have changed their behavior towards smaller customers than Fortune 100’s.
The proof is right here stripe is no longer considered a tool for a medium form small business like you said there are too big and they do offer an awesome tools that but with the amount of money coming in They’re probably not even making choices that are anything like what they were making two years ago.
Check this out
Stripe’s total funding to about $200 million and a valuation of $3.57 billion.
“The new round of funding comes after a busy summer and fall in which Stripe partnered with three of Silicon Valley’s most famous tech companies: Facebook, Twitter and Apple. Stripe is powering the new “Buy” buttons for the social media companies and is processing in-app payments for Apple’s new mobile payment service, Apple Pay.”
All the best,
I agree….have same feeling, we are small business they dont mind about us. What do you recommend? braintree? 2co?
Honestly I would go away from Braintree there just like PayPal. I would pick 2Co or SquareUp but not without more security measures to keep your company from being used as it is for chargebacks. I like square up there really competitive I would take a look at them.
All the best,
Actually with paypal I’m really happy…
To keep using stripe I am considering this fraud prevention tools:
Easy to integrate and for free if you dont have high volume.
It’s been a while but I have implemented an anti fraud system:
im on the same boat,.one dispute after another and I even have the “Decline if CVC and/or address or zipcode fails” yet Stripe still let those orders come through. I stopped using Stripe and is looking for an alternative, currently only using Paypal.
Thank you very much for this post my friend!
Ok , so Stripe.com – what is going on here?
We have used Paypal for 5 years , not a single dime lost in disputed charges etc. We have Stripe.com for a significantly shorter time and within weeks of using them we receive “Disputes” for goods shipped with tracking. Then it was ok , and now recently disputes have arrived again.
When Stripe email us about a “DISPUTE” – we respond with tracking details , at which point they take back all of the money + $25 dispute fee , and they keep all of the fees also?
At this point it’s a waiting game and we’re told that our payment being returned to us is dependent UPON THE CARDHOLDER’S BANK?
Excuse me if i’m wrong here , but surely the CARDHOLDER’S BANK is always going to favour their own customer which means you’ll lose out of pocket even when you’ve shipped the item with evidence provided etc.
We received one dispute > provided evidence of shipment delivery >> STRIPE EMAIL US “YOU HAVE LOST THIS CASE”.
We received another dispute > provided evidence of shipment delivery >> STRIPE EMAIL US “YOU HAVE LOST THIS CASE”.
Is Stripe.com a company to be completely avoided or am I missing something here?
We have a dispute open right now and have the feeling that is going to end up the same way as yours. Customer with product and we losing the money + the product + the fee from stripe…. terrible.
With Paypal never had this EVER.
Stripe is pretty dirty. They let fraudulent transactions through and you ship the item and get the chargeback. And you lose all the money plus fees plus 2.9% transaction fee on the disputed amount! So you end up losing way more than you ever received. Insane. Stay away.
stripe is fraudulent company, they stuck your money for no reason, i will never suggest anyone to use this worst service, also their support is world’s worst support, they don’t reply emails and they don’t have phone support.
I totally agree Stripe is definitely fraudulent. After viewing a video on YouTube of someone bragging how good Stripe was, I was really convinced it was a good option.
A few weeks after using stripe, Stripe informed me that I could no longer using my account with them. They kept my money and pretended that they would deposit it into my account, each time the date arrive to deposit my funds, they would change the date to a further date.
They have blocked me from speaking with someone to resolve the matter quickly. All I can do is write to them via emails, and nothing is being resolved. It is 15 days now they have my money, and they are doing everything to keep it for themselves.
PEOPLE BE AWARE, Stripe can start very nice, but one day they will seized your money by closing your account, when your account is closed, you will no longer have access to their chart services to resolve the matter of getting paid. This is a premeditated plan to take moneys not belonging to them.
I am confident that one day, Stripe will mess with the wrong person who will put them out of business forever. SHANE on STRIPE I do not recommend their service.
If you are using Stripe and nothing has gone wrong yet, please get out quick before they close your account, keep all your money, and block you from their chart contact option.
Stripe is unfortunately ruining my life my business, my
employees, and Christmas for their kids.
We have been running various websites for many years and have always
used traditional merchant accounts.
Unfortunately, we run many websites, and with traditional merchant
accounts the processors want an account for each site and business. When you have 15 sites, having 15 merchant
accounts in nearly impossible to manage and we found ourselves creating more
problems trying to manage each one vs finding a processor like stripe that we
could create sub accounts or something of the sort and be up and running with
each new website we launched in hours or less.
We were finally making progress and excited to begin using stripe. Money was flowing, deposits were coming,
orders were being shipped, chargebacks were low and next to nothing. Refunds, were only our own transactions that
we were testing our sites with.
Things were good as all stories start out in the beginning. Unfortunately that lasted just a short while.
We began to slowly receive notifications for each account one by one over time
with each notification having different reasons. None of this made sense to us, we were
shipping orders, refunds were low, sites were doing good, chargebacks were next
to nothing, and everything was in place.
The relationship should be perfect match and fit.
Recently as each account was being shut down, they were starting
to place holds, change deposits to 7 days, then no deposits, and a constant
loop of scheduling transfers that never happened. You can’t reach them, explain, discuss, or
anything. I have managed to get some email
responses here and there with very little information flowing, we are left with
no choice but to share our story and hopefully avoid this happening to
We now have around $15,000 tied up with stripe. That is a lot of money, and we are 9 days
away from Christmas, we have employees to pay this week, they have Christmas to
buy for their kids, travels to see family, all to be destroyed over Stripe and
their lack of willingness to work with their supporters. I was a big fan, loved their concept and ease
to do business. I was like in my head,
saying Finally a company that gets it and if for the small businesses out
there. I love Stripe.
That is all being erased with the stress and frustrations they
have caused on our business and our personal lives. We need our cash flow and rely on it to
operate. They never inquired to see if
our orders were fulfilled, customers happy, or anything just shut us down with
no information or reasons that we could maybe provide documents, information to
satisfy their concerns. While I realize
businesses like theirs have to manage risk, I respect that, but did they reach
out, inquire, or anything? NO. Worst of all, CHRISTMAS IS RUINED for many!
I also realize there is lots of fraud out there, they have to
take preventative measures, but don’t hurt the good guys, or penalize the ones
who run a legitimate operation.
As we are respected in our industry already which is internet marketing, It
is not difficult to prove that a company who by procedure does not communicate
by telephone with people, and has more negative press than a presidential
nominee already ( as we learned in doing diligence on this issue ) is engaged
in unreasonable business practices and unfairness to its clients. We will show
this. Sorry your “Hands are tied”. We were hoping for a more
favorable response as my concern is for the survival of our small business and
my staff and their families.
This is December 16th today. We will not be able to pay our
employees for Christmas without our money. We have been effectively shut down by
Stripes actions. Our business will be entirely shut down until we can reapply,
open new merchant accounts and go through the painstaking process of
integrating the new processors etc to our websites. Stripe didn’t provide a
shred of evidence of chargebacks, or what risk level they speak of. Please
define how you qualify “Higher than normal risk”. Because form the
outside, it looks like you are using MY employee’s paychecks, to fund their
company. However; we can absolutely prove we have shipped and continue to ship
products. We can absolutely prove any chargebacks or disputes are handled by
our accounting staff, we can absolutely prove that the level or
“risk” you assess, is probably not based on anything specific to our
industry or actual performance.
Stay clear of Stripe if you want to avoid things like the above,
shame on me for taking a chance with a company that does not provide phone
support or publish a phone number at all.
Stripe, Beantream, PayPal… all garbage services, ALL OF THEM. Pathetic industry. Tried them all, all suck. Square is so scammy that have not bothered. Moneris has BAD reviews, and so does everything else. Essentially, called my bank and even they HAVE to use a payment processor. Like wtf.
so which one is the best payment gateway?
How is your experiene with Braintree – or what CC company are you using now?
Hi, here is our follow up to this post: https://kinsta.com/blog/startups-avoid-stripe/ They owned up to their mistake and we have been happy to work with Stripe since then.
You should avoid Stripe at all costs. They are the biggest scam artists around! First, they promote fraud and will hold you accountable for their lack of security features. Before starting Stripe, be very wary about this company and what you sell. If you sell any type of electronics you will be shut down immediately. Its not listed on their list of companies they dont accept, but after a few months they will shut you down immediately for selling any type of electronics online. These scam artists will approve you and then say ok you setup for 2 day deposits. Within the first few orders they will send you a BS email saying “oh your high risk – we’re moving you up to 7 day before you can even touch your money.” As far as fraud, LAUGHABLE – we quested this company 20 times and each time got a different BS answer. STRIPES FRAUD DETECTION IS NOT EXISTIANT AND THEY PROMOTE FRAUD. When you take a credit card order, you must always make sure to ship to the credit card billable address or else you will lose any charge backs for non receipt of merchandise. WITH STRIPE HERE COMES THE FRAUD! STRIPE DOES WANT YOU TO REJECT ORDERS THAT DONT HAVE A CREDIT CARDS BILLABLE ADDRESS. Which means ever single stolen credit card will go through. Meaning that you have to go into your Stripe account and immediately check every single transaction to make sure the credit cards billable address was verified. If not every single transaction goes through. When Stripe was grilled for weeks they gave every single lying answer imaginable. Only the zip code is validated not the most important feature the address. So in any charge back they keep the $15 fee. And they do nothing whatsoever to protect the seller. THE GAME STRIPE PLAYS. When they shut you down, they wont say STRIPE WE SHUT YOU DOWN, they give another lying answer saying the customer that just purchased an item from you 5 seconds ago called them and said the transaction wasnt authorized. Again another lie by Stripe. How would the customer know you use Stripe, how could the customer contact Stripe immediatlely after a purchase, reality is they didnt. They will say that just to close your account and hold your funds. And here comes th bigger game by these scumbags. You log in and they say in 2 days you get the money, when the 2nd day rolls around, mysteriously another 24 hours rolls around and it keeps on repeating it. You cant refund a customer. So legally if Stripe has the funds and you have no ability to refund the money, Stripe is legally responsible for the chargeback because your not paid, so your under no legal obligation to ship anything. Check your credit report and if these aholes put anything on it sue them. Most importantly, there is now way to contact Stripe. They hide behind emails and 75% they dont return emails. All their phone numbers are recordings that you cant reach anyone nor leave a message. These scam artists hide behind an email system, lie to your face, steal your money, promote fraud, the works. Just make sure you have a real processing company not some wanna be as a back up. Stripe does not care about sellers truefully.
I am using stripe since 2 months, no chargeback or dispute so far. They have a fraud technology called “Radar” since October 2016, it would block payments like you mentioned (3 continents). I have set the level of risk filters very tense, so you can not even pay at the moment if you are on vacation in another country. I also allow only 1 transaction per day per card/user/ip. Seems to work fine.
Hi Mark, I like this article…but am a bit concerned as to the date structure around it. It shows that the article was updated as of July 2016, but has comments listed from two (2) years ago. I’m presuming that the bulk of the information is from 2014? With that said, one must to assume that now that it is March of 2017, that…this scenario may no longer be valid. None-the-less, anyone considering present day PAYMENT PROCESSING must certainly consider scenarios like these. Even though API’s have made this super easy, there is still a lot of mystery based around all of this, that one needs to solve prior to committing to any particular vendor. The number one consideration is Security and Risk Management. With this big boy payment processing companies, such as “PayPal & Stripe” making plenty of money by skimming off the top via their industry standard (2.9% + .30 per transaction)…IMO they should consider themselves damn lucky, especially this day and age)…as it’s simply a cash cow for them. Process the funds and settle. The landscape is always changing in this sector. The way money is moving into the digital plan, with security getting better and better every day…couple that with mass consumer acceptance…and you have a winning solution on your hands. RGP-
Yeah sheesh Freshbooks had a small bug with an Overseas client. Had to use “stripe gateway” BIGGEST MISTAKE.
i just got stung by stripe today… some one signed up and kept paying for 5 moths and then disputed by saying they dont recognise the charge and stripe immediately decided on there favour.. now i have a massive negative balance on my stripe and they are about to take money out of my account instead of depositing it. HORRIBLE
There is a good chance these signups were fraud and someone used stolen credit cards. Did you check these transactions? Stripe has a good filtering system called Radar where you can implement special rules to block suspicious payments.
no i did not. New to stripe and new to selling online all together. But still i find it crazy that some one can do this. In theory any one who has purchased any thing from me via stripe can just say they dont recognise the transaction on the card statement and get a full refund immediately. there has to be a fail safe for sellers
I was considering Stripe, but after reading this article I am confused.. I don’t want a payment service provider that will ruin my business. I’d rather use a service which is not that overrated. I was suggested Cardinity .com, but I am not sure yet because it is not very well-known. It seems reliable and cost-effective, but I will check what benefits it offers and then decide.
Wow, good to see this and a few other warning reviews right as we were about to make the switch from PayPal (we DETEST their inconvenient new interface). Guess we’ll endure PayPal a while longer.
It’s unbelievable. The customer reached out to us that they mistakenly issued a dispute and we submitted all evidence including their statement that they withdraw the dispute. Even then If we loose the case, then I seriously doubt what goes behind the scene between STRIPE and these banks.
We are moving back to Paypal as well.
I had this SAME thing happen. The customer openly admitted it was a mistake, had all evidence and they decided in their favor. $500 worth of jewelry. STRIPE HAS COST ME THOUSANDS.
Same here, received charge-back code “cardholder don’t recognize transaction”. The customer admitted he filed the charge-back by mistake, so I sent every single evidence to stripe : all checks passed, IP address for downloads matching the home address, I even sent them the conversation with the customer saying he purchased the product himself and made the charge-back by mistake and saying he needed to call off the charge-back. Dispute lost, support tells me that I lost because I needed to provide proof that the charge-back was already cancelled! stripe is now disconnected from my store. I processed way more transactions with paypal and only this one time I called, saying I had evidence the person was trying to fraud, not even showing them what it was, and they unfroze the funds and cancelled the charge-back. Paypal has a bad rep but this just showed me they probably aren’t that bad after all
They are just animals. Suddenly they closed our account and refunded all the transactions we ever had! We wrote 2 times to the support, three days are gone and still no answer.
Now we are going back to PayPal and we have to ask 300 payers to pay again for the service. I still can’t believe it happened.
Still waiting for an answer from them. As today we lost 20.000 euros. We don’t know if we will be able to get in touch with every customer and have them to pay again.
Great article, thanks for posting. I was rejected by Stripe today because they deemed my business to be MLM. Which it is not. I have a unique news website with an affiliate program (going live with both in January 2018).
I simply need a way to accept initial payments, charge monthly subscriptions ($5) and pay affiliates for their referrals. Does anyone know of a good provider for these needs?
I have been hit by Stripe yesterday. I run a small business out of New Zealand and the attraction was Stripe support NZD through my Weebly account. Yesterday I got an email saying I was being terminated for illegal activity, high risk or fraudulent activity. I have NEVER had a dispute in the twelve months I have used them nor has there ever been any illegal or fraudulent activity on my behalf. I keep getting the same rhetoric and a link to their T’s&C’s. In their latest email they bizarrely linked me to a blog that was written in August 2016 as their legal argument. So as a legit business that has never had any kind of problem, they are now crippling my company by turning me off for a reason only they know about AND they are retaining my money until March next year. They say they have performed “complicated algorithm tests on my website” but they refuse to provide me with the outcome of those tests because they are to complicated for me to understand. I even got onto their IT IRC channel and asked them about the “complicated algorithm tests” but they clammed up and pointed me back to Wyatt the customer services genius. It is completely illegal to terminate and retain money with no just cause. As much as I signed up to their terms and conditions, they have to abide by them also. Unfortunately two weeks out from Xmas I am left with cash I now cannot touch and a store that only accepts Paypal…I have so many built up expletives I want to vent here but in the vein of professionalism, I shall go outside and provide that spectacle to my neighbours…If there is an ANTI Stripe site anywhere, let me know so I can sign up
This article is full of nonsense. It’s not stripe’s fault if you don’t know how to use their brilliant radar thing to fight against fraud. Often people wants to accept payments at all costs and, of course, a lot of fraud happens.
In any case, comparing paypal with stripe is absolutely idiotic. Nothing to do and stripe is not miles but light-years ahead.
Thanks for the comment, however, this post was written before Stripe radar existed. In fact, we have an awesome post coming out about how to use it soon. Stripe has definitely made improvements over the years.
We had hundreds of cases where we submitted all proof and evidence but in 99% cases, we loose the dispute with Stripe and on contrary, not a single dispute we lost on Paypal. Stripe has under-the-table alliances with the banks. They will never look for your interest because they know that their target market is stupid and lazy.
And just to clear your doubt, been using Stripe Radar for last 6 months for our SaaS based B2B with monthly reoccurring revenue over $100K and for the above case, it’s useless.
So yes, agree that Radar may send an alert to watch a payment but it’s not trustworthy as many a times it’s a false alarm.
Stripe could be good for a startup whose making a little money here and there but if you are scaling up, then Stripe is not the company to trust. Finally, after having dealt with customer service at Stripe multiple times, I’ve not shame in saying that they are rude, snobby bastards.
Stripe commit fraud in that they collude with banks … They don’t allow sufficient time for banks to respond to disputes so they get to keep the $25 dispute fee.
Their website also tricks you into entering a website During signup … Unbeknownst to you though, this website detail you enter is what your charge appears as on your customers statement. If like me you don’t actually have a website you’re in for chargeback trouble in the very near future. I did find the option elsewhere on their site to correct this when my customer who created the dispute communicated with me.
Regardless of them advising their bank immediately of their error and in spite of insurmountable evidence submitted by me immediately, Stripe eventual response was dispute lost.
I emailed them that they should enjoy the last $25 they’ll ever get from me and that they’ll be duly reported to the appropriate authorities. I was not bluffing though.
Avoid Stripe … They’re obviously not happy with making a mere 1.9% and are more reliant on the lucrative chargeback fees.
Corporate Criminals must be stopped
I second this – lost £180 fraudulent chargeback for services rendered at my beauty salon when the client had paid using Apple Pay with her FINGERPRINT.
If that’s not proof enough that they aren’t colluding with the big banks and doing crap-all in helping you in your disputes then I don’t know what is.
18 months later, I got this email :
We’re incredibly sorry for the trouble with your Stripe account!
It looks like some activity on your account was misidentified as fraudulent, causing potential charge declines and the cancellation of your account. This was a mistake on our end, so we’ve gone ahead and re-enabled your account.
We sincerely apologize for any frustration this caused—we take these problems very seriously. Please let me know if you have any questions or if there’s any way we can be of help.
18 months is a lot of time, but at least they followed up and now you know that the mistake was on their end.
That’s really dumb of them to admit any fault. You now have legal recourse to get a good amount of monetary damages from them and they can’t possibly defend against it, they admitted to fault and therefore admitted to any and all damages they cause through their fault. Of course, if you are too small to hire a lawyer who can defend you properly, then it’s a moot point. But still. NOt very bright of them do go about it this way
I am a medical doctor and used Stripe for subscription plans (membership arrangement at my clinic) and administrative services to be paid up front. I had an excellent record (no chargebacks, no disputes, steady growth). Suddenly they notify me that my account will be closed in a few days, claiming I run an online pharmacy! Upon receiving information stating otherwise, they still proceed to shut down the account. As a consequence I will suffer significant economic losses (income from subscription plans). Stripe is in my opinion not a reliable business partner.
We run a telehealth service for medical providers and use Stripe for subscription plans. We have been a stripe customer for 4 years. No charge backs, no disputes. We have nothing to do with pharmaceuticals.
2 days ago we were told our account would be cancelled in 5 days because “we are unable to accept payments for pharmacies, pharmaceuticals, and related products (such as telemedicine practices that dispense pharmaceuticals, etc.)”.
5 days notice! Our business will be severely disrupted while we scramble to come up with an alternative and lose access to all our subscription credit cards. We get no response to email and they refuse to talk about it over chat. I agree, Stripe is not a reliable business partner and clearly does not care about their customers ability to continue doing business.
I have had the exact same problem with Stripe. We are a telehealth provider of doctor consultations and they have shut us down after 4 months of no problems whatsoever (no refunds/chargebacks etc). 5 Days warning is not enough time to find another gateway.
You cannot talk to them on the phone about it – I tried to find a telephone number but there is none! They send these inane emails “This is just a reminder that you will no longer be able to accept payments through Stripe beginning 11/17/2018.”
Well F*** YOU too STRIPE!!
Same here. We receive a suspending mail. Is “funny” that they can close the accounts faster than deposit funds on your bank.
We offer to delete products that can match that “pharma” thing and keep doing bussiness. They keep giving some kind of random answer, they don’t want do anything.
We also were giving them examples of “big” companies that broke their rules and how they use the rules against some but they look to the other way when the client/account is big.
So I have a small business . I lose business as people think they need to have a Paypal account in order to pay but don’t realize they can use credit card instead of PP acct. I want customers to be able to stay on website and pay. Small business. Suggestions for any system?
So frustrated with Stripe and totally agree with all above comments, BrainTree/Paypal is far better and will always support it’s customers.
Same thing here. Just received an email saying that we are at a “higher risk level” for customer complaints and that they will close the account in 5 days. We had 0 disputes and 0 chargebacks but somehow they decided we were not deem of Stripe. I cannot believe I’m saying that but, yes, it does seem that Stripe is even worse than PayPal.
I’m really looking for the days where we will get rid of these greedy faceless corporate middlemen and adopt Bitcoin and crypto as the main way of payment.
Very frustrated with Stripe. Someone fraudulently established an account in my organization’s name. Have been trying to get the matter resolved for two months now. Not able to talk with anyone on the phone and the email support has been next to worthless. One would think they would want to actively work with a company to resolve matters like this. Not Stripe.
Hi Mark, this just happened to me and Stripe wants me to file a local police report and give it to them before they will even look into my claim. someone set up a bogus business account using my website and facebook as credentials then started charging credit cards with a phony business name using my name and stripe sent me emails saying they can no longer accept payments from my website. i didn;t have an account with stripe and i don’t seem to be able to get them to do anything about it. It is totally frustrating and totally irresponsible on Strip’s behalf, i think they are the scam artists, and especially not having an inbound phone number to speak to someone. Something is really rotten with Stripe! I didn’t have an account with them and somehow i am in the middle of fraudulent disputed chargebacks. What!
This is the worst processor ever!
I asked them to approve website before opening account. Got approval moved away and paid freelancer to do it.
Just 1 test transaction and it got blocked.. for selling coffee beans.
They are totally insane
Thank you for this post, I received the same email this morning. Did they end up telling you any reason as why you were originally flagged by their system to trigger being high risk in the first place?
And I was wondering how you could resolve it with them, I know that they reached out to you, did you have to show them anything or were they willing to reinstate your account at the point of you reaching out?
Hey Charles, this post was originally written in 2014. Here is our follow up post: https://kinsta.com/blog/startups-avoid-stripe/
Stripe has gotten a lot better about these things. We haven’t had any issues since. We recommend simply reaching out to their support team and they should be able to help.
BS – They are withholding $15,000 of my money right now, due to 1 customer filing a bunch of chargebacks.
More than that, you can’t seem to win a chargeback with Stripe, while we won >95% of them with Authorize.net.
Stripe is awful with no customer service.
Hey Bob! Hopefully, you got our issue resolved, but Stripe now offers 24×7 support over email, phone, and chat. We have been very happy with Stripe for the past couple years and they are a critical part of our business. I also recommend checking out their new improved Stripe Radar features: https://kinsta.com/blog/credit-card-fraud-stripe/
I’m sorry to hear this happened to you!
However, please don’t go to Braintree.
They processed thousands of stolen credit card fraudulent transactions on my site, over a 72 hour period back in March. 80% they rejected. 20% they processed. All had the same name and IP address and the same ‘failed fraud check’ markers in the transaction detail.
So it was gross negligence for them to process the 20%.
They then refused to refund the transactions for me. I had to do it manually. But they locked my account for 3+ weeks, making it impossible for me to do so.
Of course, the chargebacks poured in. Even after spending days, manually refunding each transaction, they’re still arriving. And so are the fees. £000s.
I have refused to pay, since their gross negligence renders the term in our contract saying I have to invalid and unfair, under UK law (I’m with PayPal and Braintree UK).
They have frozen my businesses’ PAYPAL account and CLOSED my Braintree account, effectively closing down my business. They did this last week, without warning and without telling me they had done it. And they are threatening USA court action for debt recovery, unless I pay the chargeback fees that they made it impossible for me to avoid.
They have refused all of my requests over the past 8 weeks to raise this as a formal complaint and have refused me access to their appeals process. This is a clear breach of the UK’s FCA terms.
I can’t get an email address to resolve this and when they email me it’s from a ‘no reply’ email. I have to phone them and each call takes up to an hour, starting from scratch with an entry-level call handler and making zero progress.
In the meantime, I can’t pay my virtual team or my suppliers, which will close down my business very soon, and any payments I receive are being impounded against my company’s ‘debt’. They are still accepting payments on my behalf – no surprise there.
My new shopping cart system (funnily enough, I’m never trusting the old one again) said they won’t let people link with Braintree because they are so bad at handling and preventing fraud.
So please don’t go to Braintree.
This was originally written back in 2014 and you can check out how we recovered our Stripe account here: https://kinsta.com/blog/startups-avoid-stripe/
In fact, we’ve been able to reduce our credit card fraud by 98% using Stripe’s new Radar feature: https://kinsta.com/blog/credit-card-fraud-stripe/
I am one of the safest businesses on the web, but Braintree declined me. I begin to think they just looking to justify the “power” given to them. And you know what? I will just accept cash and the heck with the credit card corporations, who rob us anyway.
Perhaps Stripe makes their money on the $25 dispute fees? Paypal has nonsense going on too. For example someone pays me $0.00 (creepy?) so I “refund” the ZERO amount to avoid any “creepy innovative chargebacks” amnd guess what? I must spend $0.05 to do that somehow!? Paypal refuses to refund the 5c to me. Paypal is corrupt. Here’s another example: Someone keeps on sending me $1 and within seconds they submit a chargeback! Within hours I refund it, but it«s too late! If not my frustration and energy spent fighting such creepy transaction I would be losing $20 for each “chargeback” to Paypal, who allegedly submits such creepy fraud via “associates” and makes money on chargeback fees! Imagine if you owned Paypal Inc. and sent $1 to a million users and submitted chargebacks and made $20 million in chargeback fees right away! Also, there are shady sellers at Paypal, who never ship goods and never respond emails, but when you place a chargeback for say $10 of the tiny purchase Paypal refunds your money, but sometimes keeps the fees! But the worst part is still to come: then months and years later I check the non-shipping seller’s account by sending them $1 and…. they are stil operating! So Paypal never closes such accounts as they profit from such fraud in huge numbers but yu never know about it, because allegedly Paypal probably does this to people who they may think are too busy or are too dumb to investigate.
I will have to agree from experience. This payment method has proven to be a hackers dream. We lost over 3k usd since subscribing to this platform and with no support. We have have had zero problems with paypal but since trying stripe we have lost over 3k in money with ZERO support. We have cancelled and we suggest that you stay away from this platform.
I have a terrible experience as well, it’s very easy to implement but I have so many disputes and I’m already losing already. :(
This *exact* issue is happening with us right now! We moved to Braintree to keep our site up in the meantime, but Stripe customer service is being ZERO help and just keeps reiterating the same thing despite the explanation, I almost feel like I am emailing a bot.
We *just* started using Stripe, scammers came, charged back $10k for multiple Xbox shipments, and then Stripe cut us off even though the sample was minimal and a totally anomaly.
Who did you talk to at Stripe? I’d like to get this resolved and your help would be much appreciated. Nice product here at Kinsta by the way.
I just ran into this same issue, but under more ridiculous circumstances. I was trying to setup a website to collect payments from friends for activities, fantasy football leagues, etc. I decided to use squarespace because I’m not a web developer, and I left it to the last minute. Stripe is the only way to accept credit cards on squarespace, so I went ahead and setup an account. I then decided to test the system with my credit card. I received an error message on my site and an email form Stripe saying that there were fraudulent charges and that they would not process payments for me. The only thing I can think of is that I connect to a vpn server on the west coast and I live in the intermountain west.
One final annoyance is that Stripe lists 24/7 chat and phone support on their home page, but I was only able to send in a support email. Here is a link to their announcement about 24/7 support. https://stripe.com/blog/phone-and-chat-support
We’ve been using Stripe for 8 months now, and I’m going through similar phenomenon as the OP – beside card testers, most scammers purchase the multiple subscriptions of the service (we sell virtual numbers, so they buy several of them) with the same credit card, without using the numbers at all. Very similar to what the OP described. Anyone have any idea whats the benefit of this conduct?
There amount of fraud activity really surprised us, and without usage we couldn’t really fight the chargebacks. We’re looking nowadays for fraud prevention that fits our small-medium business volume, as obviously Stripe’s Radar is missing many transactions, including obvious “I’m from Nigeria, but I buy with a US credit card” kind of charges. At the very least we expected such charges to come up for review.
I’m sorry to hear this happened to you! A few months ago we wrote a detailed post about Radar and how it can help you to lower the number of fraud signups. Here is the link https://kinsta.com/blog/credit-card-fraud-stripe/
The “I’m from Nigeria, but I buy with a US credit card” issue can be easily detected and blocked if you create a custom rule in Radar:
:card_country: = ‘NG’ AND :ip_country:!= ‘NG
:card_country: = ‘NG’ AND :ip_country: = ‘US”
Also, you can block an entire country if you think all the signups are fraudulent.
I hope this helps. Let me know if you have any more questions!
I have been using Stripe for 4yrs with Yapsody so my customers can buy tickets online to my events. It’s been fine but now for the last 2 weeks they have kept my money and I can’t get into my acct due to an email issue. I have emailed support over 30 times with no response. They say you can call or online chat but only after logging in. I can’t login! I’m feeling very frustrated. I need the money coming in to buy supplies for my events coming up. I have no idea where the money is and I have no one to talk to about it. Any suggestions on how I can get this resolved?!
Wow. Great article and a great eye opener. It’s funny I’ve never had a problem with Stripe until today. While it’s not anywhere near your situation, for some reason trying to charge my client for a subscription isn’t going through despite it going through with the same client a month prior.
NEVER use stripe!!! It’s the worst payment system every and there is no way to win a dispute. On top of that, stripe always tell you that it’s your fault. If you sell physical products and even if the products have been successfully delivered with confirmed tracking number, Stripe will always find a way to tell you that it’s your fault. It’s funny that Stripe says “A complete payments platform” when they miss the most important aspects which is fraud payments and security. NEVER USE STRIPE!!!!
We’ve had a similar problem with Stripe. After we got a chargeback they blocked all payouts from our account. So they are still charging our customers, but not allowing us to get access to our money. And their customer service takes about 3 days to respond. Not a good look. I’ll be changing our payment processor asap.
Stripe are AWFUL!
They have now closed TWO of my accounts down this year stating I am high risk.
I have had ZERO disputes, no chargebacks. NOTHING!
Not from legitimate people, not from crooks. NONE!
In comfortable 6 figures of sales…
They don’t care. Just BOOM! You are a high risk merchant we don’t want you.
NO chargebacks. LONG term honest business person.
Fact is, Stripe are not what they once were.
I’d advise you to AVOID LIKE THE PLAGUE! And I’d like to encourage platforms to offer plenty of alternatives to Stripe…
Like you say, Stripe you were meant to be the chosen one.
You’re really not. Stripe, you’re BAD. And once word gets out to the masses, you’re going to struggle.
BAD BAD BAD company, stay away peeps!
I have my own Stripe nightmare…. they deemed my website “illegal” because of telemarketing… which may or may not be true. The fact is… after 2 years of doing good business the “suddenly” decided that they would not be my vendor anymore. No warning. Nothing but a crappy email rendering my site useless. I would advise any developer to AVOID Stripe as well as their ”chargebacks”. Here’s the email $&/@$!$ me in the arse:
Thanks for using Stripe.
While we hate to give you anything less than a great experience, it does seem that your business is in violation of the Stripe Services Agreement, section A.7.b (“Prohibited Businesses and Activities”). Specifically, we are unable to accept payments for telemarketing services as mentioned here: https://stripe.com/prohibited-businesses.
These regulations are firm, so we sadly have no flexibility with them. Unfortunately, you won’t be able to accept new charges on your account, but we will continue making payouts to your bank account until you receive all of your funds.
We’re very sorry that we have to turn away your business, and wish you the best of luck moving forward.
Lesson learned… don’t use Stripe
they shut you down without you even having chargebacks??
AVOID Stripe at any cause, just a nightmare and a horrible service support
$15 charge-back is freaking ridiculous and I hope someone better will replace them soon enough. Unreal how s*** company like this has $20B valuation with such a customer support and 0 help to people who make them so much money
Ok does anyone know around the % of chargebacks or disputes you can have before stripe shuts you down? I’ve had 277 successful charges but recently 2 people have filled disputes. I know that sometimes merchants like paypal it doesn’t take long for them to shut you down
my paypal account got shutdown after having to refund like 4 people
So for stripe what do you think is the dispute % they look at before shutting your account down?
Braintree have a process of application validation. Braintree could decline your application when you are already on production with your application working. They no consider this viability before and you don’t get any special advice before the first online payments. If Braintree decides to decline the application, all payments must be returned to the customers, and your account may be locked. Be sure that they approve your application before register on the sandbox and begin integration with Braintree.
I have had nearly £2000 in the stripe account and every time I ask someone to get back to me or release the funds I get an email saying we will look into it than nothing. No disputes just three separate payments with no issues and they have just stopped the account from paying out.
Its great for you that your problems of fraud have been solved. Reality is that you made a big stink and have a following to be your backup. People like me, just a tiny fish in a big ocean will continue to be scammed and stolen from.
We are going through a nightmare with STRIPE. We have implemented their “Platform” configuration. Getting no support and no good answers,. I have spoken to people in multiple countries and nothing. they dont even understand the question that is being asked. when I requested a call back from Menlo Park I got an email stating they dont call back and only willing to chat via email and again repeated the same old shtick i have heard for the last few days. I am frustrated and not at all happy with their support and their lack of care for customers. as I am writing it I am on line with someone in Singapore who has placed me on hold 20 minutes ago and I expect no resolution when they get back on the phone. meanwhile they are charging us fees and killing my business.
Yes, avoid stripe at all cost! They don’t release your funds and hold them and give you the runaround. Then when they see reviews like this they try to give an explanation as to why and the run around continues. CEO Patrick Collison nor Jeanne DeWitt Grosser speak out or reach out to customers. It seems they are all about the money they pocket and leave customers on the sidelines. This is unethical, unprofessional and unacceptable the level of service Stripe is providing. Three weeks in I have sent and explained over the phone and through email, all that had been requested from me yet no explanation or expectation of a date has been provided. All you get is a story to wait two days to only receive an email repeating what you have sent in from day one.
So many angry comments… do not use Stripe!…
And no comments what to use instead… with hundreds of other processors.
So guess what – you are not the only one!
I recently signed up with stripe for my Uk based ecommerce retail store. We took 10 payments in first week and suddenly stripe declared ‘Unfortunately, your business can’t use Stripe because it doesn’t meet our Terms of Service. If you think this may be a mistake, please contact us.’
Now of course I assumed it was a mistake because we simply sell low risk, low cost retail fashion accessories. we took around £1000 in our first week on stripe from 10 customers.
I tried to message stripe support – chat and phone options were removed, so tried email. 3 emails and 1 week later and they simply refuse to reply!
Now Stripe have (without explaination) refunded all the orders to my customers – so we lose that money because we already delivered their products and of course we are unable to use Stripe in any way.
We have since onboarded with another merchant account/ gateway provider – which was very simple because we are just a vanilla low risk business.
But I really cant understand what on earth caused stripe to treat us like Pariahs – to refuse to even reply to an email (a polite and logical request for help) is incredibly unprofessional and makes no sense no matter how ‘unacceptable’ they found our business to be.
Obviously we had zero disputes and no reason to distrust my account, we had done some marketing in Spain and had a number of foreign customers but that is normal for us as we ship worldwide.
If anyone from Stripe is reading this – firstly what happened? and secondly get in touch so you can try to resolve this because there is something seriously wrong in your organisation if you have to treat a profitable new customer like this!
Stripe (Credit card Processing) is serving not only to ensure reliable and faster online payment but also offering other facilities for the users. It releases people from payment through Credit/Devit Card, Bank Transections, or Cash payment, which are time-consuming as well as risky. Therefore, for small or big businesses, companies, online shops, or e-commerce sites who need to pay or receive from customers, Stripe is a big bang for them.
I am now experiencing a similar problem with Stripe now! we are a non-profit organisation that just started to ask for support.
They sent me similar email, high risk, did not meet terms and service..etc
What hurts the most is the they are now asking us to pay them so they can refund our donors!!! since we are new, account is new, there is not enough money after their service charge to refund everyone and they are asking us to debit money to refund our donors??
How is this fair?? We are already having the headache of trying to explain to our donors why this is happening and hopefully our reputation is not going to be damaged before we can even start!!
Has anyone gone through similar issue and how can we solve this??
As a reseller i would not recommend stripe. In the event a customer decides to cancel an order (as there entitled to) stripe will still charge the reseller for the original transaction. This is grossly unfair, why should the reseller be out of pocket because a customer decides to change their mind?
Paypal don’t do it, credit cards companies don’t do it, i would recommend that as a reseller stay clear.
I was victim of fraud while using Stripe on my website. Someone did card testing with my account and processed more than 1500 payments. I refunded all of the fraudulent payments, except for 6 disputes that had already posted to my account, but now I am stuck with a negative balance because of all the stripe fees. Have contacted stripe multiple times by phone and email but so far have NOT gotten any help at all! They haven’t even been able to offer advice on how to handle the disputes for the fraudulent transactions on my account.
Any one have any luck talking directly to the team that handles the fraud investigation? I am so upset at Stripe right now and would NOT recommend them at all!
I am facing the same issues as Stripe has wrongfully locked my account a few months ago. Is there a way to reach their higher management or legal team?
I’d recommend reaching out to Stripe’s support team as a start. Unfortunately, we don’t have any information on how to reach out to someone high up in the company.
I had been using Paypal, Worldpay and Viva on my business websites for 8 years. Then made the huge mistake of using Stripe. I have never seen so many fraudulent transaction come in so quickly, within a week of installation every third transaction on stripe was with a stolen credit card. Even one transaction, that we thought was legit, only got flagged as fraudulent by stripe 3 1/2 months after the transaction has occurred? We have removed Stripe after 2 weeks of use and would never use them again. Stripe seems to be a huge target for credit card fraud, or they welcome it and profit from it! (the later is my guess)
Hi Daniel, I don’t have any data backing this, but I think Stripe is so big that keeping a 100% amazing experience for everyone is difficult. For every 100 Stripe success stories, there are going to be bad one as well. I’m sorry to hear you had a bad experience with Stripe, but glad you’ve found some alternatives.
We’ve just had a really bad experience with Stripe and I’d urged everyone to think twice about using them. I’m a web developer by trade and have been an advocate for Stripe in the past and have encouraged clients to sign up with them but I’m going to start moving my clients away from them now. I started my own e-commerce site at the beginning of the year. We quickly made a handful of good genuine sales (around £3k) due to my marketing experience but noticed there were a couple of high risk payments that Stripe had blocked – all well and good, that’s what they’re supposed to do right? Then suddenly we got an email from Stripe that they could no longer support our needs and were closing our account. They informed us our account was on hold and they were refunding all the transactions, even the genuine ones. I quickly get in touch with them to explain that I thought this was a mistake and we’d sent goods out and had proof of courier/delivery. This made no difference to them and they have now refunded everyone. We’ve been put in the very difficult position of contacting customers to ask for payment again. Fortunately there is hope in humanity and we’re on our way to recovering 80% of the funds that Stripe refunded through other means including BACS and PayPal (good old PayPal to the rescue). I’m not sure how legal it is what they have done but I’ve never seen or heard of any other payment provider doing this and I’d strongly discourage anyone from using them again.
Recently registered charity and most platforms seem to use stripe so had to sign up with them. After weeks of not paying out donation money they suddenly emailed to say they are closing down the account. no reason given and no explanation provided. we had no chargeback, no fraudulent payments, nothing to indicate anything was wrong yet they are closing it down with no payouts yet from all our fundraising for charitable causes. We are regietered with HMRC and charitys commission in the UK so no reason to see any issues with being a legitamate charity