Stripe, Inc.

Initial Business Response /* (1000, 5, 2015/09/04) */
Stripe operates within a variety of constraints imposed by our banking partners, credit card networks and applicable law. As a result, Stripe must fully understand its users to ensure their businesses are consistent with Stripe's Terms of...

Service. All users agree to these terms when activating Stripe accounts, and the terms are posted here: https://stripe.com/terms
Since Stripe bears financial responsibility for all accounts using Stripe to accept payments, Stripe needs to have a high degree of confidence about their likelihood of delivering promised goods and services. This includes reviewing that the products/services on offer do not fall into the list of businesses that our financial partners have identified as high risk. Stripe periodically reviews accounts to verify that they meet these standards, and reaches out to merchants should any issues arise.
During a routine review, Stripe identified strong signals that the complainant's account was in violation of the Stripe Terms of Service. Stripe cannot process payments that appear to be unauthorized by the owner of the charged card. In August 2015, Stripe reached out to the complainant to advise them of our decision and the closing of the account.
The closing of this account is in accordance with the following section of the Stripe Terms of Service. Our terms very clearly state that Stripe "may suspend your Stripe Account and your access to the Service and any funds in your Stripe Account, or terminate this Agreement, if we determine in our sole discretion that you are ineligible for the Service because of the risk associated with your Stripe Account, including without limitation significant credit or fraud risk, or for any other reason".
https://stripe.com/us/terms#termination
While we will not be able to continue processing transactions on the account, this does not preclude the complainant from signing into Stripe and accessing any of the account's existing data.
We have no intention to keep the complainants profits. The industry chargeback window is 90 days, and we are required by our banking partners to hold your remaining funds in a reserve for that length of time. By August 18th, all funds in the complainant's Stripe account were transferred to their designated bank account.

Final Consumer Response /* (2000, 5, 2015/01/15) */
Thank you very much!!!!!
The business already resolved the issue, though with a delay - they don't communicate properly.

Initial Business Response /* (1000, 5, 2014/07/17) */
Stripe is a service that sellers use to accept payments online. According to the report, the buyer made a purchase from one of Stripe's users and states that the seller didn't deliver the service. While Stripe facilitates purchases...

between buyers and sellers, we'd recommend that the customer contact the seller directly for questions about his purchase or to request a refund. If the customer is dissatisfied with the purchase and the seller won't offer a refund, we'd recommend that he contact his card-issuing bank to dispute the purchase.

Initial Business Response /* (1000, 5, 2015/12/21) */
Stripe supports businesses by providing the infrastructure to accept payments online. The complainant is the owner of one of the many businesses we support.
On 12/14/2015, we reached out to the complainant via email because we were concerned...

about several large payments that their Stripe account had processed. These payments closely resembled a type of fraudulent payment activity Stripe constantly monitors for in our systems. The complainant responded to our email with due concern, and, when she didn't hear back immediately, sent in 5 more emails. During this time, assessments were made on the complainant's account to determine any fraud damage and next steps. On 12/15, a Stripe support representative communicated with the complainant via email to set up a phone call. This representative spoke with the complainant via phone on 12/16. During that call, login access to the account was re-enabled, and the complainant agreed to refund the suspicious payments and attempt to recover the funds she had paid out to the third party. Stripe support followed up after the call with an email summary, as well as some follow-up steps. As of 12/21, we are waiting to hear back from her with any updates or further questions.
In summary, we have been in touch with the complainant via email and phone, and are collaborating with her to resolve any remaining account issues. At this time, we await hearing from her regarding her attempt to recover funds she paid out to the third party.
Complaint Response Date bumped because: Holiday

Initial Business Response /* (1000, 5, 2015/08/26) */
Stripe does have the CVC and Zip failure checks on our end, and as mentioned, these checks not enabled by default because we wanted to allow business's to choose to utilize these additional checks if they wanted to. Our data show that for many...

businesses, having these checks would be detrimental to their business, as it's fairly common for cardholders to enter an incorrect billing ZIP.
As for Stripe authorizing the card, we actually did not authorize it at all -- the bank did. All one technically needs to run a charge past the bank is the card number and it's expiration date. While the other information like the cardholders name and the CVC and Zip code can be used to further legitimize and verify the card, it is not a requirement for the charge. As such, banks will have their own fraud checks that analyze charges in different ways. I can't speak for this particular bank itself, but in most cases it is usually a point-based weighted system, and having incorrect information isn't necessarily a reason to decline the charge by itself, as long as other factors of the charge don't reach a certain threshold. Some banks don't even check the CVC and Zip code for a matching status.
Also, while we highly encourage merchants to vigilantly review their orders, we cannot be held responsible for losses incurred in cases where a routine order review would have successfully prevented loss. We outline many merchant best practices on our Support center, though we are not able to ensure that all users be diligent in following them:
https://support.stripe.com/questions/avoiding-fraud-and-disputes
Having said that, the decision on the dispute cannot be reversed. There is no appeal or arbitration process once a dispute has been closed, and the card-issuing bank decided based on the evidence that the card holder wasn't responsible for the purchase. Because the business was not able to win the dispute, the user are liable for the funds involved. This is apart of our Terms of Service here:
https://stripe.com/terms#chargebacks
Initial Consumer Rebuttal /* (3000, 7, 2015/08/30) */
(The consumer indicated he/she DID NOT accept the response from the business.)
First of all, I appreciate that Stripe actually addressed the issue and didn't just give a canned copy/paste reply like I've seen with most of their Revdex.com responses. I will also say that their Customer Support people have all been polite throughout. However, that's all that I can say positive about this incident.
I am glad to hear that Stripe has actual data to support their decision to disable basic fraud protection. I would be interested to know the number of merchants sampled, the factors they measured, what the results showed, etc., because their conclusion contradicts every other merchant service provider I've contacted since this happened. I think all the other merchants who have been harmed by their decision would also like to see this "data" because it seems counter-intuitive. I can't imagine any small business that would rather risk losing hundreds of dollars to fraud instead of simply having a customer resubmit their charge because they made an error. That is just ridiculous.
I accept that the cardholder was not at fault - it has already been determined that their card number was stolen and used illegally. And I agree with Stripe that the bank was initially at fault: Whatever "system" the bank used to verify this charge is laughable - the person's NAME did not even match the cardholder, not to mention the failed address and CVC! It was actually my initial position that the bank was at fault and I asked Stripe to bring them into the discussion. However, Stripe vehemently protected the bank from any involvement, so the responsibility must now rest fully with them.
Stripe keeps saying that "a routine order review" by the merchant would have prevented the loss, but they still can't give a single example of anything that would have flagged this transaction. There was NOTHING out of the ordinary about it, nothing that violated their "merchant best practices," so their suggestion is irrelevant and totally useless in this case.
Stripe knows that disabling the security checks was a bad decision, as they have now finally changed that default setting. I'm sure this was in response to the many merchants that filed complaints on Revdex.com.org (not to mention many more that probably didn't bother to file a complaint). This chargeback was due to Stripe's negligence in a) disabling a primary fraud-prevention tool, and b) not informing new customers of the risk associated with that. When you see a doctor you have an expectation that he washes his hands between patients to prevent infection. When you have your brakes serviced you have an expectation that the parts are installed correctly to avoid an accident. And when you sign up with a merchant service provider you have an expectation that they will use the industry-standard tools available to prevent fraud. The other providers do; Stripe did not. I therefore hold them responsible for this loss and I want the disputed funds returned to my account.
Final Business Response /* (4000, 9, 2015/09/11) */
In response to feedback like the complainant's, Stripe now enables the CVC check failure auto-decline feature by default for all new Stripe accounts - users will now need to opt-out rather than opt-in. However, Zip check auto-declines are not enabled by default because we want users like the complainant to be able to accept payments from around the world. Zip checks are not available worldwide. If this auto-decline for Zip checks was the default setting, then many payments from around the world would be declined.
The complainant mentioned that Stripe was protecting the issuing bank which decided upon this dispute. It is not Stripe's policy to disclose the location and identity of the issuing banks involved in disputes. However, we are happy to assist with any legal investigations the complainant has requested in order to help resolve this matter, including legal requests for information in subpoena format.
Finally, the complainant mentioned that they abided by the best practices for fraud prevention and still were hit by fraud. Although the fraud in this case was difficult to detect, this could have been avoided if the complainant had enabled CVC or Zip auto-declines from the outset. The need for this is highlighted in the best practices documentation and on our Support site:
> https://support.stripe.com/questions/cvc-or-avs-failed-but-payment-succeeded
> https://support.stripe.com/questions/avoiding-fraud-and-disputes
Final Consumer Response /* (4200, 17, 2015/09/25) */
(The consumer indicated he/she DID NOT accept the response from the business.)
In short, I do not accept Stripe's resolution to my complaint. They finally admitted their decision to disable CVC security checks was a poor choice and have now corrected this. That resolves the issue for all their new customers, but it does not repair the damage done to their existing customers. Their poor judgement caused financial harm to many merchants and they need to take responsibility for their actions. Revdex.com suggests that complainants offer a "middle ground" to help reach a resolution. Toward that end, I would accept a repayment of half the amount I lost in this transaction, or $578.83. I recognize that there is not much more Revdex.com can do if Stripe refuses to accept that, but there are more actions I can take and I will continue to pursue this.

Initial Business Response /* (1000, 5, 2015/06/05) */
There was a uncharacteristic delay in responding to the emails here after a large influx of emails during this time period. On May 26, 2015 we replied to the complainant's email and looked into this issue. On 1st June we updated the complainant...

with the issue, i.e. the transfers to the complainant's bank account were valid and were processed through a second Stripe account set up by one of the complainant's colleagues.
We explained how the complainant could access this second Stripe account in order to identify and reconcile the unrecognized transfers to their bank account in emails on 1st June and 2nd June. On 4th June we followed up to check if they could access this second Stripe account. We are still waiting for a reply and confirmation that this issue has been resolved.
Initial Consumer Rebuttal /* (3000, 7, 2015/06/08) */
(The consumer indicated he/she DID NOT accept the response from the business.)
The correspondence from Stripe is sporadic and the issue is not resolved. I've already responded directly to their support person [redacted], that the second Stripe account does not belong to us... that the transactions are in error. Erroneous deposits are still hitting our account, the latest being June 3rd. Our bank is now trying to reverse the deposits thru ACH and is attempting to contact Strip on our behalf.
Final Business Response /* (4000, 9, 2015/06/13) */
Hi [redacted],
My apologies for the difficulties here.
After you initially contacted us on May 18, my research revealed that a volunteer with MPAEF set up a second Stripe account in connection with a major fundraiser in 2014. As far as we're aware, the funds you're receiving are donations to MPAEF in response to that fundraiser.
At your request, I reached out to that user to get her permission for me to get you both in touch with each other. I then contacted you to confirm her identity, Ccing her on that email.
Unfortunately, I'm afraid my response may have been caught up in some email filter. I've just reached out again today using the email you provided in this Revdex.com report, in hopes that my email will get through.
Once we're able to resolve ownership of the second account, we would be very happy to help you refund the charges associated with these transfers, if it turns out that they should not have been sent to MPAEF. This will involve coordinating with the owner of that second Stripe account, to make sure that any refunds are authorized by the appropriate parties.
I hope this sheds some light on this situation. Please don't hesitate to reach out if not, or if we can help out in any other way!
Kind regards,
[redacted]
Final Consumer Response /* (2000, 11, 2015/06/17) */
(The consumer indicated he/she ACCEPTED the response from the business.)

Below is Stripe's Response to the complaint submitted by Enrique Salgado (herein referred to as the "Complainant") on April 3, 2018.Stripe OverviewAs background, Stripe provides a technology platform that allows merchants selling permissible goods or services online, or through a mobile device, to...

quickly and simply accept credit card payments.[1] Merchants register for an account by providing contact information, some information about their business and its principals, and bank account information. This information is submitted through an electronic application process and additional information, such as ID scans, may be requested by Stripe after submission. Merchants have control over what information is provided to Stripe – for credit card charges, this must minimally contain the card number and expiration date. Most merchants also elect to provide the name, CVC, ZIP code as an anti-fraud measure, but are not required to. It is important to note that funds are briefly held in an aggregated clearing account at a bank before being deposited into the merchant's bank account.  It is important to note that merchants identify the account into which funds are ultimately deposited through the Stripe management interface. Merchants consent to Stripe’s Services Agreement when establishing their account. A current version of the Stripe Services Agreement is available at https://stripe.com/us/legal.[[redacted]Merchant Account Overview The Complainant submitted an account with Stripe on March 3, 2018 under the name "GEEWITIT.BUSINESS.SITE" at http://geewitit.business.site/. Stripe processed payments for the account owner until March 12, 2018. During a routine review, Stripe determined that the complainant's business was at a high risk for disputes. On March 8, 2018, Stripe contacted the Complainant, informing them that we would no longer be able to support their business as we are unable to accept payments for businesses we determine to be at high risk for a dispute rate of over 1%, as mentioned here: "High chargeback rates (typically those exceeding 1%) may result in your inability to use the Payment Services. Failure to timely and effectively manage Disputes with your Customers may ultimately result in your inability to accept payment cards for your business."[redacted]Reserve TermsThe closing of this account was in accordance with the following section of the Stripe Terms of Service:"may suspend your Stripe Account and your access to the Service and any funds in your Stripe Account, or terminate this Agreement, if we determine in our sole discretion that you are ineligible for the Service because of the risk associated with your Stripe Account, including without limitation significant credit or fraud risk, or for any other reason"[redacted]In order to mitigate future losses to Stripe as a result of chargebacks on the Complainant's account, a reserve was set in place that will last for 90 days. Funds will be transferred to the complainant's bank account on June 6, 2018. This is in accordance to Stripe's Terms of Service:"We may impose a Reserve on you for any reason if we determine that the risk of loss to Stripe, Customers, or others associated with your Stripe Account is higher than normal. For example, we may hold a Reserve if: (i) your or your Customers’ activities increase the risk of loss to us or to your Customers, (ii) you have violated or are likely to violate this Agreement, and (iii) your Stripe Account has an elevated or abnormally high number of Disputes."[redacted]While there is a reserve in place, the Complainant is able to log into their Stripe dashboard, process refunds to the customer's whose funds are held and reprocess these funds with a different processor if they need immediate access to the funds.For the reasons explained in detail above, Stripe acted in accordance with its terms of service in the handling of this merchant account and the Complainant's claim for damages is baseless.

Initial Business Response /* (1000, 5, 2015/02/25) */
The complainant applied for a Stripe account on February 12. On February 13, Stripe contacted the complainant by email about their URL: to comply with legal and regulatory requirements, Stripe must confirm what users are selling, and...

there were no products or services available for purchase through the complainant's website. Stripe also did not receive an invoice for the complainant's single charge from Wave, a third-party invoicing partner. Stripe cannot transfer funds for that charge before confirming what the charge was for.
The complainant emailed Stripe on February 14. That email stated the complainant had responded to Stripe's initial message, but Stripe did not receive an earlier message. The complainant then emailed several more times asking if everything was in order with their account. Unfortunately, due to high support load, Stripe's response to these messages was delayed until February 25. Stripe asked for an itemized invoice that could confirm the details of the charge, and explained that funds will be transferred just as soon as Stripe can confirm this information.

Stripe reached out to the complainant on September 19, [redacted] in regards to an unusually large transaction that was processed on their account, as we needed additional information about the charge. After reviewing the charge and the complainant's account, we reached out to them on September 23, [redacted]...

to inform them that we would be no longer able to support their account and that a reserve would be placed on their account due to the high risk of disputes on their account.As stated in Stripe's Terms of Service, we reserve the right to create a Reserve Account on the complainant's account as needed:"We may impose a Reserve on you for any reason if we determine that the risk of loss to Stripe, Customers, or others associated with your Stripe Account is higher than normal. For example, we may hold a Reserve if: (i) your or your Customers’ activities increase the risk of loss to us or to your Customers, (ii) you have violated or are likely to violate this Agreement, and (iii) your Stripe Account has an elevated or abnormally high number of Disputes."https://stripe.com/us/legal#reservesIf the complainant immediately needs the funds, they are welcome to log into their Stripe account, refund the funds to their customer and reprocess them through a different processor.

Complaint: [redacted]I am rejecting this response because:
I have supplied all the information Stripe had previously requested.  The response indicated that it was identified the fraud alert was a false positive, however my funds are still being held and are not able to be transferred to me.  I still have a balance of [redacted] that Stripe is holding.  
I have sent numerous emails to the email address in the transfer failed screenshot ([email protected]) and not a single one has been answered, even after over a month of time elapsed.
I am not looking for "damages", I am just looking to get MY money back that is in my Stripe account.
 
I have attached two screenshots, one of my balance, the other of the "error" that occurs when trying to transfer money out.
 
Sincerely,[redacted]

Initial Business Response /* (1000, 5, 2015/03/23) */
Stripe is required to collect tax identification information from each user for legal and regulatory requirements. This information is provided by each Stripe user, and is verified to the best of Stripe's ability against IRS databases....

While unlikely, it is possible there was a mistake causing the complainant's information to be incorrectly provided to the IRS in association with another Stripe account.
The day after this complaint was created, the complainant successfully contacted Stripe about the issue. A Stripe representative responded, letting them know Stripe would certainly assist in anyway possible and apologized for the mistake.
The complainant indicated they were going to be able to resolve the issue directly with the IRS, and since then, has not contacted Stripe. We believe this matter to be resolved but are willing to work with the complainant however necessary to ensure the situation is resolved.

Stripe operates within a variety of constraints imposed by our banking partners, credit card networks and applicable law. As a result, Stripe must fully understand its users to ensure their businesses are consistent with Stripe's Terms of Service. All users agree to these terms when activating...

Stripe accounts, and the terms are posted here: https://stripe.com/us/legal
During a routine review, Stripe determined that the complainant's business was at a high risk for disputes. On August 12, 2016, we contacted the complainant, informing them that we would no longer be able to support their business; we are unable to accept payments for businesses we determine to be at high risk for a dispute rate of over 1%, as mentioned here: 
https://stripe.com/us/legal#specific-payment-methods
The closing of this account was in accordance with the following section of the Stripe Terms of Service. Our terms very clearly state that Stripe "may suspend your Stripe Account and your access to the Service and any funds in your Stripe Account, or terminate this Agreement, if we determine in our sole discretion that you are ineligible for the Service because of the risk associated with your Stripe Account, including without limitation significant credit or fraud risk, or for any other reason". 
https://stripe.com/us/legal#termination
For businesses that are determined to have very high risk accounts, our financial partners require that all funds are held onto for the industry standard chargeback window of 90 days. At the time of issuing refunds to the customers, the reserve funds were used, as complainant had also requested.Tell us why here...

Below is Stripe's Response to the complaint submitted by [redacted] (herein referred to as the "Complainant") on [redacted].
Stripe Overview
As background, Stripe provides a technology platform that allows merchants selling permissible goods or services online, or through a...

mobile device, to quickly and simply accept credit card payments.[1] Merchants register for an account by providing contact information, some information about their business and its principals, and bank account information. This information is submitted through an electronic application process and additional information, such as ID scans, may be requested by Stripe after submission.
 
Merchants have control over what information is provided to Stripe – for credit card charges, this must minimally contain the card number and expiration date. Most merchants also elect to provide the name, CVC, ZIP code as an anti-fraud measure, but are not required to. It is important to note that funds are briefly held in an aggregated clearing account at a bank before being deposited into the merchant's bank account.  It is important to note that merchants identify the account into which funds are ultimately deposited through the Stripe management interface.Merchants consent to Stripe’s Services Agreement when establishing their account. A current version of the Stripe Services Agreement is available at https://stripe.com/us/legal.
[1] https://stripe.com/us/payments
Merchant Account Overview 
The Complainant submitted an account with [redacted], 2016 under the name "SW-VW.COM" at http://sw-vw.com. Stripe processed payments for the account owner until [redacted]. The Complainant deleted their account on [redacted]. On [redacted], [redacted] and [redacted], three chargebacks were filed against the Complainant. As these chargebacks accumulated, pursuant to the Complaint's agreement with Stripe and as described in further detail below, Stripe debited these funds from the Complainant. Specifically, as further described below, we debited the amount that was charged back and a fee of $** for each chargeback that we processed.
Detailed Account Activity
On [redacted], the Complainant emailed Stripe, asking for advice on how to contest the dispute. A Stripe support agent then provided information to the Complainant about how to fight disputes and what the lifecycle of a dispute looks like. The Complainant reached out again on [redacted] after their dispute was marked as lost to get additional information about why this occurred. A Stripe support agent provided them with information regarding why the dispute was not resolved in their favor. This was the last communication Stripe had with the Complainant. 
Dispute Resolution Terms
Stripe charges a fee for providing the service outlined above (https://stripe.com/us/legal#fees-and-fines). This includes both fees per transaction as well as fees for other services, such as dispute resolution. For US accounts, a merchant incurs a $** dispute fee for each dispute submitted on a charge processed through Stripe's platform (https://stripe.com/docs/disputes/faq). We charge this because Stripe incurs fees and costs for each dispute filed against a merchant. If the dispute is resolved in the favor of the merchant,the $** dispute fee is refunded to the merchant even though Stripe receives no reimbursement of fees and costs incurred in supporting the merchant with the dispute resolution process. 
When a cardholder initiatesa dispute against a merchant using the dispute mechanisms provided by the cardholder's bank, Stripe provides tools for the user to submit evidence that illustrates that the charge was legitimate. However, Stripe plays no role in the ultimate decision made on whether the chargeback is valid.  When a merchant signs up to use Stripe's services, the merchant agrees to be immediately liable for all disputes. 
In specific, the Complainant's agreement with Stripe states:
"When a Chargeback is issued, you are immediately liable to Stripe for the full amount of the transaction related to the Chargeback plus any associated Fees, fines, expenses or penalties (including those assessed by the Card Networks or our payment processors). You agree that Stripe may recover these amounts by debiting your Bank Account, debiting the Reserve Account, or setting off any amounts owed to you by us. If we are unable to recover funds related to a Chargeback for which you are liable, you will pay us the full amount of the Chargeback immediately upon demand. Where such amounts are not immediately paid to us, you agree to pay all costs and expenses, including without limitation attorneys’ fees and other legal expenses, incurred by or on behalf of us in connection with the collection of any unpaid Chargebacks unpaid by you."
(see https://stripe.com/us/terms#chargebacks)
For the reasons explained in detail above, Stripe acted in accordance with its terms of service in the handling of this merchant account and the Complainant's claim for damages is baseless.

Revdex.com:I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me. Sincerely, Connie [redacted]

Initial Business Response /* (1000, 5, 2015/08/20) */
The complainant signed up for Stripe on 5 November 2014, with the intention of using Stripe to process payments for an online jewelry store. It is worth noting that online jewelry sales are particularly targeted for fraud, especially when the...

merchandise is so high-value.
On August 7th, Stripe informed the complainant that a dispute had been filed for $10,935, and that they did not understand why their account received a chargeback for that amount when the original amount charged was $10,500. The same day, Stripe responded to the complainant multiple times, explaining that the difference between the chargeback amount and the original charge for $10,500 was that the card was located in New Zealand, and that the $435.54 was a result of the NZD going up in value in comparison to USD, along with Stripe's $304.80 processing fee, which is not refunded in the event of a chargeback, and a standard $15.00 dispute fee. Stripe also explained that, as the card was based in New Zealand, a country which cannot verify address or CVC number, our system's decline process did not catch the fraud.
As a matter of clarification, Stripe is not responsible for fraudulent charges processed by users' accounts. Much like the disputes process, we pass [redacted] relevant information (including the CVC, street check, and ZIP checks the user mentions in his complaint) to the card-issuing bank, who then authorize or decline the charge. We have many fraud prevention measures in place, including allowing users the ability to refund suspicious payments even if they are authorized by the bank. These tools exist to help our users protect themselves.
Stripe is not in a position to cover the cost of disputed funds for our users. Our terms explicitly state that users are "immediately liable for to Stripe for the full amount of payment of the Chargeback plus any associated Fees, fines, expenses or penalties." Our terms further state that "Stripe may provide you with assistance including notifications and software to help you contest your Chargebacks. We do not assume any liability for our role or assistance in contesting Chargebacks." Our users accept these terms when they create their Stripe accounts. More information can be found in our terms of service, here: https://stripe.com/us/terms#chargebacks
Disputes are a frustrating reality of accepting credit card payments, especially online. We try to give our users the best chance to avoid these situations, but ultimately Stripe will not accept responsibility for fraudulent payments. We are happy to help the complainant avoid future disputes, and can always be contacted at [redacted]@stripe.com.

Below is Stripe's Response to the complaint submitted by [redacted] (herein referred to as the "Complainant") on May 4, [redacted].Stripe OverviewAs background, Stripe provides a technology platform that allows merchants selling permissible goods or services online, or through a mobile device, to...

quickly and simply accept credit card payments.[1] Merchants register for an account by providing contact information, some information about their business and its principals, and bank account information. This information is submitted through an electronic application process and additional information, such as ID scans, may be requested by Stripe after submission. Merchants have control over what information is provided to Stripe – for credit card charges, this must minimally contain the card number and expiration date. Most merchants also elect to provide the name, CVC, ZIP code as an anti-fraud measure, but are not required to. It is important to note that funds are briefly held in an aggregated clearing account at a bank before being deposited into the merchant's bank account.  It is important to note that merchants identify the account into which funds are ultimately deposited through the Stripe management interface. Merchants consent to Stripe’s Services Agreement when establishing their account. A current version of the Stripe Services Agreement is available at https://stripe.com/us/legal.[1] https://stripe.com/us/paymentsMerchant Account Overview The Complainant submitted an account with Stripe on November 12, [redacted] under the name "iGuy" at http://www.iguyshop.com. During a routine review, Stripe was not able to identify what the Complainant was selling and how the Complainant's customers were to get in touch with them. On April 22, [redacted], Stripe reached to the Complainant to ask for additional information about the Complainant's business. The Complainant did not respond with the requested information. Stripe's terms state, "We reserve the right to change the Payout Schedule or to suspend Transfers to you: (i) due to pending, anticipated, or excessive Disputes, Refunds, or Reversals; (ii) in the event of we suspected or actual suspicious activity; or (iii) where we are required by Laws or court order. "https://stripe.com/us/legal#transfers-and-transfer-scheduleFor the reasons explained in detail above, Stripe acted in accordance with its terms of service in the handling of this merchant account and the Complainant's claim for damages is baseless.

Below is Stripe's Response to the complaint submitted by [redacted](herein referred to as the "Complainant") on [redacted].Stripe OverviewAs background, Stripe provides a technology platform that allows merchants selling permissible goods or services online, or through a mobile device, to...

quickly and simply accept credit card payments.[1] Merchants register for an account by providing contact information, some information about their business and its principals, and bank account information. This information is submitted through an electronic application process and additional information, such as ID scans, may be requested by Stripe after submission. Merchants have control over what information is provided to Stripe – for credit card charges, this must minimally contain the card number and expiration date. Most merchants also elect to provide the name, CVC, ZIP code as an anti-fraud measure, but are not required to. It is important to note that funds are briefly held in an aggregated clearing account at a bank before being deposited into the merchant's bank account.  It is important to note that merchants identify the account into which funds are ultimately deposited through the Stripe management interface. Merchants consent to Stripe’s Services Agreement when establishing their account. A current version of the Stripe Services Agreement is available at https://stripe.com/us/legal.[1] https://stripe.com/us/paymentsStripe's Relationship to the ComplainantTo clarify, Stripe is not the merchant. As Stripe is not the merchant, it is not held responsible for the customer service administrated by it's users. This is outlined in the Terms of Service:"You know your Customers better than we do, and you are responsible for your relationship with them. Stripe is not responsible for the products or services you publicize or sell, or that your Customers purchase using the Services; or if you accept donations, for your communication to your Customers of the intended use of such donations. You affirm that you are solely responsible for the nature and quality of the products or services you provide, and for delivery, support, refunds, returns, and for any other ancillary services you provide to your Customers."https://stripe.com/us/legal#your-relationship-with-your-customersIn order for the Complainant to get a refund or update on their purchase, they will need to contact the merchant. If the Complainant is unaware of who charged their card, they are welcome to write into [email protected] with details about the payment so Stripe can assist them in locating who charged their card. There are currently no emails from the Complainant found as of [redacted].For the reasons explained in detail above, Stripe acted in accordance with its terms of service in the handling of this merchant account and the Complainant's claim for damages is baseless.

Initial Business Response /* (1000, 7, 2015/11/05) */
Disputes can be a frustrating part of accepting credit card payments, and Stripe does everything possible to make sure our users have an advantage during the disputes process. That said, Stripe does not have the ability to resolve...

disputes for our users, or make decisions about who wins or loses. Stripe provides tools to our users for submitting evidence to their customers' card-issuer, but that issuer is the entity who arbitrates the process, not Stripe.
The complainant ultimately bears the responsibility for preventing fraud and disputes on their account. This procedure is in accordance with the following sections of our Terms of Service, which can also be found at https://stripe.com/us/terms and more specifically https://stripe.com/us/terms#receiving-your-funds-from-card-transactions ("You are responsible for refunds, returns, and liable for customer disputes (chargebacks).")
Additional relevant terms agreed to by the complainant:
https://stripe.com/us/terms#payment-methods
https://stripe.com/us/terms#chargebacks
Section C.7 of Stripes Terms of Service states:
"When a Chargeback is issued, you are immediately liable to Stripe for the full amount of payment of the Chargeback plus any associated Fees, fines, expenses or penalties (including those assessed by the Card Networks or our payment processors). You agree that Stripe may recover these amounts by debiting by means of ACH debit of your Bank Account associated with your Stripe Account, debiting your Reserve Account, or setting off any amounts owed to you by us. If we are unable to recover funds related to a Chargeback for which you are liable, you will pay us the full amount of the Chargeback immediately upon demand. You agree to pay all costs and expenses, including without limitation attorneys' fees and other legal expenses, incurred by or on behalf of us in connection with the collection of any unpaid Chargebacks unpaid by you."
We also pride ourselves on having as much documentation for our users as we possibly can. One area of focus is fraud and dispute prevention, and we clearly mention steps for our users to take in order to prevent this exact type of situation:
https://support.stripe.com/questions/avoiding-fraud-and-disputes#identifying-pot...⇄ /> While we understand the stress this situation has caused the complainant, our Terms of Service and documentation are very clear that the ultimate responsibility for preventing fraud falls on our users. The complainant has provided evidence for many of the disputes and we are waiting on responses from the relevant banks before marking these as won or lost. The complainant will be informed of the outcome of these disputes as soon as we hear back from the banks.
Initial Consumer Rebuttal /* (3000, 9, 2015/11/06) */
(The consumer indicated he/she DID NOT accept the response from the business.)
This is the same General answer they have on their websites help page this does not explain why I've lost cases that I have this conclusive evidence showing I should be the winner of that dispute I've requested to talk to someone on the phone about my disputes and I get these general answers I could have looked up online for this company has a very bad review for stealing people's money without giving them a clear reason why besides them claiming they have nothing to do with the result of dispute
Final Business Response /* (4000, 11, 2015/11/14) */
We understand disputes are a frustrating part of running an online business. We are happy to provide the complainant specific information and feedback on disputes and the evidence they submitted should they email us at [redacted]@stripe.com. However, we cannot provide that information through the public forum on the Revdex.com website. Additionally, Stripe provides tools to help our users submit dispute evidence to banks, but the ultimate decision on a dispute lies with the cardholder's bank and not with Stripe.
In general, we recommend merchants contact their customers first to try to resolve disputes. Specific recommendations based on dispute type can be found in our comprehensive support documentation, for example: https://stripe.com/help/dispute-types#fraudulent
Again, we are happy to answer any specific questions about disputes at: [redacted]@stripe.com. Outside of that, our Terms of Service are clear that responsibility for disputes and chargebacks lies with the complainant.
Final Consumer Response /* (4200, 13, 2015/11/18) */
(The consumer indicated he/she DID NOT accept the response from the business.)
I have already spoken to multiple customers who say they have authorized their purchases with us the same orders you guys say we're never authorized by my customer something's not adding up if my customer tells me they authorized the purchase and expecting the purchase there has to be a scam on your end I've made test purchases with my own credit card to see if they would go through a few months later I will receive a dispute from stripe saying that this order was never authorized by the car holder which I am the cardholder which I did authorize that transaction I simply want my money back stripe swindle out of me

Initial Business Response /* (1000, 5, 2015/03/04) */
Hi [redacted],
I'm sorry to hear about your recent chargebacks, and that you did not win these disputes. We realize that chargebacks are a difficult aspect of accepting credit card payments. We're here to help users like you respond to...

disputes when they occur, and provide information intended to help you avoid disputes and fraud:
https://support.stripe.com/questions/avoiding-fraud-and-disputes
To help clarify the dispute process a bit:
All Stripe users are asked to agree to our Terms of Service, which state that users accept responsibility for any chargebacks that may occur on charges processed on their account: "When a Chargeback is issued, you are immediately liable to Stripe for the full amount of payment of the Chargeback plus any associated Fees, fines, expenses or penalties (including those assessed by the Card Networks or our payment processors)."
The relevant section of the Stripe Terms of Service can be found here: https://stripe.com/us/terms#chargebacks
Also noted in our Terms of Service, Stripe reserves the right to discontinue service with users in the case of excessive chargebacks: "At any point, Stripe, Wells Fargo, the Card Networks, or our payment processors may determine that you are incurring excessive Chargebacks." This was unfortunately the case with your account, and I'm sorry we will therefore not be able to serve you further.
You can see the relevant section of Stripe's Terms of Service here:
https://stripe.com/us/terms#excessive-chargebacks
Just for some further context: Ultimately, Stripe does not make the determination of who gets to keep the funds in a chargeback dispute. This decision is up to the card holder's bank. They consider evidence that you submit, and decide to settle a dispute either in your favor or the cardholder. Stripe helps you with this process by providing a method for submitting evidence and getting updates on the dispute status.
Unfortunately in this case, as with most cases, the card-issuing bank did not provide any details about the reason for their ultimate decisions. We definitely understand how frustrating this must be, especially given that it can take so long (up to around 60 days) for a bank to make it's final decision about a dispute.

I hope this helps provide some context for our decision in relation to your account. If not, please don't hesitate to contact us at [redacted]@stripe.com.
Initial Consumer Rebuttal /* (3000, 7, 2015/03/19) */
(The consumer indicated he/she DID NOT accept the response from the business.)
We have reviewed Stripes terms as far as charge backs and fraudulent charges, and have done everything in those terms and then some. We have provided evidence including physical ship to addresses, email addresses, phone numbers, IP addresses, correspondence for the consumer, and proof of delivery. We have gotten no information from or about the card holders bank, and the reasoning behind the lost disputes. Stripe is lying about their decision to discontinue service with us. On January 3, 2015 we received an email from Les Holiday, stated that our business violated their terms of prohibited businesses, specifically selling brand name goods. We are a reputable business and authorized dealers of the products we sell. there is nothing in their terms that says, even remotely, that our business is on their prohibited list. It was only after they discontinued service that we started having all these charge backs. We deal with another credit card provider and have never had these issues. It seems Stripe itself deals in fraudulent business practices. I can't imagine that someone from the Federal Trade Commission isn't investigating them yet. As we are now being scammed by consumers and Stripe.com. We are still seeking our money for the disputed charges, $2747.36.
Final Business Response /* (4000, 9, 2015/03/25) */
Disputes can be a frustrating part of accepting credit card payments, and Stripe does everything possible to make sure our users have an advantage during the disputes process. That said, Stripe does not have the ability to resolve disputes for our users, or make decisions about who wins or loses. While Stripe provides tools to our users for submitting evidence, the process is actually arbitrated by their end-customer's card-issuing bank.
This user wrote to Stripe on January 23rd, frustrated that he was receiving chargebacks from old payments. We absolutely recognize that this is a frustrating experience, but we do not have any way to limit the types of disputes our users receive.
A Stripe support representative responded on January 27th, explaining that Stripe makes available in the Dashboard all data sent over by the bank arbitrating the dispute (including any updates to a dispute's status), as well as clarifying the same information mentioned above. The dispute in question had already been decided in favor of the card-holder; we are always happy to provide guidance and clarification about the disputes process, but in this case it was already complete.
As a matter of further clarification, Stripe does not authorize charges for our users. Much like the disputes process, we pass [redacted] relevant information (including the CVC, street check, and ZIP checks the user mentions in his complaint) to the card-issuing bank, who then authorize or decline the charge.
While it appears that the user took reasonable steps to resolve the disputes in his favour, Stripe is not in a position to cover the cost of disputed funds for our users. Our terms explicitly state that users are "immediately liable for to Stripe for the full amount of payment of the Chargeback plus any associated Fees, fines, expenses or penalties." Our terms further state that "Stripe may provide you with assistance including notifications and software to help you contest your Chargebacks. We do not assume any liability for our role or assistance in contesting Chargebacks." Our users accept these terms when they create their Stripe accounts. More information can be found in our terms of service, here: https://stripe.com/us/terms#chargebacks
Disputes are a reality of accepting credit card payments, especially online. There is nothing unique about this user's disputes that warrant Stripe assuming liability for disputed funds, though we will continue to support him to the fullest possible extent if he experiences future disputes or chargebacks.
Final Consumer Response /* (4200, 11, 2015/04/04) */
(The consumer indicated he/she DID NOT accept the response from the business.)
since we began this complaint process we have incurred another $1300.00 worth of disputes. Although Stripe claims they do everything in their power to help resolve disputes. this is untrue. We have provided every bit of evidence on every charge back including correspondence with the consumer. We have been accepting credit cards at our business for nearly 30 years and have never had an issue like this with other credit card service providers. we have been able to submit the evidence to the cardholders bank and have been successful in every instance. With Stripe, we have no access to the cardholders bank, nor any proof that our evidence was actually submitted to them. When we submit every single piece of evidence, order #'s, phone #'s, ship to addresses, email addresses, IP addresses, proof of delivery, and actual correspondence with the consumer, to is really quite incomprehensible that we could have lost every single dispute. In my opinion, there is some kind of fraud going on here either with Stripe or the issuing Banks and there should be some kind of investigation into the business practices of both.

Stripe reached out to the complainant on June 23, [redacted]  for confirmation of ownership of the domain associated
with the account. Since Stripe bears financial responsibility for all accounts using Stripe to accept payments, Stripe needs to have a high degree of confidence about their...

legitimacy, and their likelihood of delivering promised goods and services. Upon review of account, Stripe found that the business presented a high level of risk and on June 24, [redacted] reached out to the compliant to begin the offboarding process.
The closing of this account is in accordance with the following section of the Stripe Terms of Service. Our terms
state that Stripe "may suspend your Stripe Account and your access to the Service and any funds in your Stripe
Account, or terminate this Agreement, if we determine in our sole discretion that you are ineligible for the Service because of the risk associated with your Stripe Account, including without limitation significant credit or fraud risk, or for any other reason". 
https://stripe.com/us/terms#termination
The balance of the Complainant's account is currently subject to a reserve and will be held until September 22,
[redacted]. We're legally obligated as per our agreements with our banking partners to hold a full reserve of
those funds. More information about Stripe's reserve policy can be found within out Terms of Service at this link:
https://stripe.com/us/terms#reserves
While we will not be able to continue processing transactions on the account, this does not preclude the
complainant from signing into Stripe and accessing any of the account's existing data including the ability to
process refunds.
In regards to the complainant's request for a phone conversation, Stripe does not have the ability to make
outbound calls at this time. We have simply found we can provide the most efficient service when our entire team can access and respond to an issue via email. Phone support is something that Stripe is actively looking into. In the meantime, the complainant is welcome to email us at [email protected].