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This article is crap. Won't tell us even what industry their startup is in... If I had to guess, it's for good reason: it's probably on Stripe's list of prohibi

This article is crap. Won't tell us even what industry their startup is in... If I had to guess, it's for good reason: it's probably on Stripe's list of prohibited businesses. (And this isn't really a list Stripe created.. it's all from Visa and MasterCards card rules that Stripe is required to follow.) Then they continue with: it also hides behind federal regulations like KYC (know your customer) and the Patriot Act as a justification for requesting more documents Yes... those laws apply to Stripe. That's why Congress created those laws. No, stripe won't commit a felony for you or help you evade those laws. Then he ends it with saying he works at a bank... and everyone should use a merchant account instead (everyone should use the product his employer sells.. no issues there). Hey guess what: all of those laws you mentioned and prohibited businesses... those apply to EVERY merchant account whether it's at a bank or Stripe. I'm guessing this is his first merchant account, and he didn't read the contract (if the startup exists at all). For those of you in a similar situation, here's my advice (and not just for Stripe): read the contract and abide by the rules. If you can't, don't have your customers deposit thousands of dollars into it, and then violate your contract.

deleted 7y ago
[deleted]
stripesucks 7y ago
I did state "a small startup in the infoservices space" within the first couple of sentences, but I apologize if that was insufficient. If you'd really like granular details, it was a vehicle history report website. Completely mundane and most certainly not on the prohibited businesses list. And I wasn't complaining about the documentation requirements. I was complaining about the fact that they weren't reviewing the documents, and used them as an additional barrier to block payouts. As for the bank point -- I work for a consulting firm, and the client I'm on is a large US bank. I do not work anywhere near their merchant services division. I don't receive any sort of commission when someone signs up for their services, and I didn't mention them specifically here. Really don't know what else there is to say on that point.
- rgbrenner 7y ago
  Thank you for those important details.
- kristianc 7y ago
  It’s also worth remembering that running to social media and blaming ‘big bad Stripe/PayPal/Monzo’ for holding funds is part of the MO of fraudsters so it’s right that posts like these are treated with at least a reasonable degree of suspicion. Having worked with companies in the fraud monitoring space I’d say that it’s likely that your case (new Stripe account starts taking loads of money for digital infoproduct) has fallen foul of an AML flag. The timeline for that is largely out of Stripe’s hands, but there are certain (legal) limitations on what you can be told about your case. Rest assured though, it’s more trouble than it’s worth for Stripe to arbitrarily hold your money for no reason.
cstejerean 7y ago
I agree with you that the tone is suspicious, but what I don’t understand is why Stripe is holding the money. If the transaction was prohibited it should refund the money to the customers rather than holding it for itself. Having Stripe hold the money indefinitely shouldn’t the solution.
crashbunny 7y ago
Thanks, added insights I wasn't aware of and balance. > Even PayPal (yes, even PayPal) caps their holds at 180 days. I imagine if PayPal held the account because of KYC or PA the 180 cap wouldn't apply...
- rgbrenner 7y ago
  Yes, you're correct. PayPal (or anyone else) isn't going to let you run out the clock by not responding to documentation requests, and then go ahead and send the money to you (a potential terrorist) because you hit a 180 day time limit. The 180 days mentioned in the article is BS too: 1) This sentence is false: "This is because the maximum timeframe a customer can dispute in is 180 days". The maximum is almost 2 years... and here's an example for why: Imagine you buy a plane ticket for 9 months from now, and then the airline cancels it and keeps the money... When the clock starts and how long it runs depends on the type of dispute. 2) PayPal can keep your money much longer than 180 days... that's just if they want to hold it for risk mitigation reasons. Their terms actually say they can just terminate your account (no funds) under certain circumstances. Or if you violated their AUP, they can charge you 2500$ per incident. That kind of a fine would wipe out most balances.
jijji 7y ago
your vile will likely get upvoted bleh
- creddit 7y ago
  Comments like these add nothing of value to anyone. At least _try_ to dispute something in his post to show why it is "vile" rather than express vague, preemptive distain at its future success because you disagree with it.

deleted 7y ago

[deleted]

stripesucks 7y ago

I did state "a small startup in the infoservices space" within the first couple of sentences, but I apologize if that was insufficient. If you'd really like granular details, it was a vehicle history report website. Completely mundane and most certainly not on the prohibited businesses list. And I wasn't complaining about the documentation requirements. I was complaining about the fact that they weren't reviewing the documents, and used them as an additional barrier to block payouts. As for the bank point -- I work for a consulting firm, and the client I'm on is a large US bank. I do not work anywhere near their merchant services division. I don't receive any sort of commission when someone signs up for their services, and I didn't mention them specifically here. Really don't know what else there is to say on that point.

rgbrenner 7y ago
Thank you for those important details.
kristianc 7y ago
It’s also worth remembering that running to social media and blaming ‘big bad Stripe/PayPal/Monzo’ for holding funds is part of the MO of fraudsters so it’s right that posts like these are treated with at least a reasonable degree of suspicion. Having worked with companies in the fraud monitoring space I’d say that it’s likely that your case (new Stripe account starts taking loads of money for digital infoproduct) has fallen foul of an AML flag. The timeline for that is largely out of Stripe’s hands, but there are certain (legal) limitations on what you can be told about your case. Rest assured though, it’s more trouble than it’s worth for Stripe to arbitrarily hold your money for no reason.

cstejerean 7y ago

I agree with you that the tone is suspicious, but what I don’t understand is why Stripe is holding the money. If the transaction was prohibited it should refund the money to the customers rather than holding it for itself. Having Stripe hold the money indefinitely shouldn’t the solution.

crashbunny 7y ago

Thanks, added insights I wasn't aware of and balance. > Even PayPal (yes, even PayPal) caps their holds at 180 days. I imagine if PayPal held the account because of KYC or PA the 180 cap wouldn't apply...

rgbrenner 7y ago
Yes, you're correct. PayPal (or anyone else) isn't going to let you run out the clock by not responding to documentation requests, and then go ahead and send the money to you (a potential terrorist) because you hit a 180 day time limit. The 180 days mentioned in the article is BS too: 1) This sentence is false: "This is because the maximum timeframe a customer can dispute in is 180 days". The maximum is almost 2 years... and here's an example for why: Imagine you buy a plane ticket for 9 months from now, and then the airline cancels it and keeps the money... When the clock starts and how long it runs depends on the type of dispute. 2) PayPal can keep your money much longer than 180 days... that's just if they want to hold it for risk mitigation reasons. Their terms actually say they can just terminate your account (no funds) under certain circumstances. Or if you violated their AUP, they can charge you 2500$ per incident. That kind of a fine would wipe out most balances.

jijji 7y ago

your vile will likely get upvoted bleh

creddit 7y ago
Comments like these add nothing of value to anyone. At least _try_ to dispute something in his post to show why it is "vile" rather than express vague, preemptive distain at its future success because you disagree with it.