Understanding why Stripe Payments are Disabled

Stripe is the payment gateway that processes credit card charges in the Payment for Stripe app. There are several similar payment gateways like Clover, Square, Authorize.net, 2Checkout, etc. However, Stripe is a leader in e-commerce, and powers some of the most popular platforms on the web including Instacart, Google, Shopify, Amazon, Lyft and Zoom.

At any given moment, Stripe may require additional information about your Stripe account. Stripe will collect, verify and regularly review information about your Stripe account to protect against fraud and stay up to date domestic and international regulations. In addition your Stripe account may be lacking “capabilities”, which can be requested via Stripe Support.

Unverified Accounts

If you are finding that your payments are disabled when using the Payment app, the best place to start is by logging in to your Stripe Dashboard account. At the top, you will see a message that will inform you if further verification is required for your Stripe account.

Stripe may request several documents to verify your business to ultimately unlock payments for your account. These documents may include, but are not limited to:

  • Scans of Government Identification, including business numbers or EINs.
  • Bank Accounts
  • Information about the business and/or person
  • Non-profit status and documentation

If you're unsure of what verification requirements you may be up against, Stripe has built a tool to help you get your items in order: https://stripe.com/docs/connect/required-verification-information

Disabled accounts due to non-compliance

Your payments may become disabled for other reasons besides your account being unverified. For instance, if you are experiencing a high percentage of credit card declines, blocks or disputes, Stripe may disable your payments to further investigate. In some cases, this may be happening due to no fault of your own. However, the signal this sends to Stripe is that your business is operating in a risky category, and the benefits may not outweigh the risk that Stripe assumes.

Why are some business types not allowed?

Unfortunately, there are several industries that Stripe does not operate in, and thus does not allow payments to be collected. Amongst these are Medical Marijuana companies (illegal at the federal level), and other illegal businesses. Stripe categorizes the businesses they accept by 6 different types:

  • Illegal businesses (e.g. illegal drugs, counterfeiting)
  • Regulated businesses (e.g. alcohol, online pharmacies, marketplaces)
  • Shady businesses (e.g. get-rich quick schemes)
  • Financially-risky businesses (e.g. airline/concern tickets, pre-order campaigns)
  • Businesses that attract money-laundering or fraud (e.g. cell phones, gift cards)
  • Businesses that pose a brand risk (e.g. pornography)

In some special circumstances, businesses in the aforementioned “Regulated Businesses” category can receive special approval, but this verification requires additional time and capital.

Many of the unsupported business categories listed above may be unsupported due to the underlying credit card brands, and not Stripe (or the Payment app) in particular. Each category comes with its own set of unique rules and regulations.

For a full list of restricted businesses, please visit: https://stripe.com/restricted-businesses

More information about account verification can be found here: Blog: Stripe Account Verification

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