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This is a common fraud prevention practice that we don’t tend to penalize processors for, but it seems that Stripe does not effectively communicate its reserve policies to merchants or warn them when a cash reserve might be withheld.

Merchants should be aware that Stripe reserves the right to “change the Payout Schedule or suspend payouts to your Bank Account should we determine it is necessary due to pending disputes, excessive or anticipated excessive Chargebacks or refunds, or other suspicious activity associated with your use of the Service or if required by law or court order,” according to its terms of service.

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Merchants are encouraged to carefully read Stripe’s terms of service before signing up for credit card processing through this company.

Hi, I’m Phillip Parker and I believe that the merchant account industry has been overrun by people who engage in fraud and deception in order to steal from hard working business owners.

The company has had 417 complaints filed in the past three years, with 193 of those related to the product or service, 118 due to billing and collection, 18 having to do with delivery problems, and 79 related to advertising issues.

Seventy-five of these complaints were successfully resolved with assistance, while 342 complaints either were not resolved to the merchant’s satisfaction or did not receive a final response from the merchant.

Key Points Stripe’s costs and fees are fairly straightforward.

Last modified 18-Nov-2019 10:07