The initial euphoria at being accepted for a Stripe account without having to jump through an arduous application and approval process soon fades away when you discover that your account has become suspended or restricted almost as soon as you start using it to collect payments.
It’s hugely frustrating and detrimental to your business and cash flow when you find your hands are tied in such a critical way. However, it is not uncommon for this scenario to unfold when using Stripe.
The risk of issues heightens when you are operating a business within what is deemed to be a high-risk sector. For instance, it would be a smart move to use a provider with specific nutraceutical payment processing experience rather than attempt to use a provider who starts restricting or suspending your account almost immediately after signing up and starting to collect payments.
Despite the fact that ChargeStripe has no actual control over Stripe’s payment platform, it is still hugely frustrating and debilitating to your business when you encounter restrictions and suspensions on your account, let alone a ban being imposed.
Here’s a look at what’s going on, why you might experience problems with your Stripe account, and what you can do to resolve the situation as quickly as possible.
The problem is a discretionary one
One of the biggest problems that you face when it comes to having problems with your Stripe account is that suspensions and restrictions are almost arbitrary and at the discretion of the payment processor.
That makes it extremely hard to gauge whether you are going to have a problem with a transaction, or your account, in general.
This lack of clarity also creates not only a sense of frustration on your part, it also makes it difficult to know the best practices to follow in order to avoid encountering a suspension or restriction in the first place.
In essence, what you are dealing with is a mindset adopted by Stripe that tends to be cautious in nature. That’s understandable to a certain extent, when you consider the inherent risks. But when you understand that Stripe might apply a suspension due to suspected fraudulent activity, for instance, but doesn’t actually specify what it is that has led them to that concussion, you can soon see where the frustration creeps in for the merchant.
High-risk business models are a primary target
There are certain elements of Stripe’s business policies that offer more clarity than others. A good example of this would be their policy for restricting what they deem to be high-risk businesses from using their service.
Providing services to “red list” areas of the world would be an obvious problem. If you are trading with countries like Cuba, Iran, or Syria, for instance, you can expect Stripe to shy away from that prospect.
It is also the case that the type of industry your business operates in will prove to be an influential factor. The prospect of chargebacks and fraud is often higher in certain sectors, such as gambling, adult sites, and mail order pharmaceutical supplies, to name a few on the list where Stripe might not want to get involved.
The obvious way to circumnavigate these likely account restrictions would be to use a payment processing provider with specific know-how and experience in these fields. If you are in the business of nutraceuticals, for example, it makes a lot of sense to choose a provider who is more familiar and comfortable with the risks associated with these transactions and the general nature of how the business works.
The key takeaway is that getting started with Stripe is relatively easy and doesn’t involve too many checks and balances, but that’s not a lot of use if you quickly encounter restrictions or suspensions on your account.
Do your homework
Stripe does actually provide a list of restricted businesses and does deliver a reasonably informative framework of what they will or won’t accept. This does give you a heads up as to whether you might be heading for some problems with your Stripe account, despite being able to open one with relative ease.
Diligence is the name of the game. As well as looking at their business account guidelines you can help smooth the path by ensuring that all of your business credentials and website details are accurate and up to date.
A simple case of not having a contact number on your website, or any errors with the contact information, could easily be flagged by Stripe and lead to a suspension.
Bottom line, one of the most important points to keep in mind is that if you are operating a business that is on their high-risk restricted list, you are likely to be better off finding a payment processing provider that aligns with your risk profile rather than trying to make Stripe fit, which won’t work.
Connecting your Stripe account
If you already have a Stripe account and want to find a way to use it with the minimum of fuss and disruption the best way to do that would be to connect your Stripe account to use the ChargeStripe app.
This makes it easier to allow you to jump through all the right hoops and reduce your chances of encountering restrictions or a suspension. In general, a lot of suspensions occur because Stripe needs more information from you. Using the app makes it easier to give them everything they need and want.
You will also be told why your account is restricted. This is usually due to suspected fraudulent activity or if you are deemed to be running a business that falls into one of their high-risk categories.
Sadly, even if you are using the ChargeStripe app correctly there’s still no way to directly resolve a suspension in that way. You will have to contact the Stripe team directly and talk through the problems to try and find a solution.
Ultimately, problems with your Stripe account can happen for a multitude of different reasons. That’s why it makes sense to find a payment processor who is more in tune with your specific requirements, especially if you operate a so-called high-risk business, or fall within one of those sectors.