Why Did Stripe Close My Account? And What You Can Do About It!
Understanding the Shutdown
Stripe, a prominent payment processor, may shut down a merchant account for various reasons, often confusing business owners. One of the most common triggers for such actions is identifying your business as a high-risk merchant. This categorization can stem from the industry’s nature, a high incidence of chargebacks, or even suspicions of illegal activities such as selling items you were not approved for, using websites that were not approved, fraud or money laundering.
Navigating Prohibited Activities and Customer Complaints
Another significant reason for account closure relates to prohibited activities. Engaging in business practices that violate Stripe’s terms and conditions can prompt an immediate shutdown. Additionally, suppose your account receives a surge of customer complaints or fraudulent transactions. In that case, Stripe might freeze your funds to protect itself and its customers, adding another layer of complexity to your operations.
The Impact of Inactivity and Shipping Delays
Inactivity can also lead to account closure. If your account hasn’t processed any transactions with Stripe for 90 consecutive days, it may be automatically shut down. For e-commerce merchants, the expectation is clear: ship goods within 30 days or less. Not doing this can lead to unhappy customers and increased chargebacks. This can result in get your account closed.
The Consequences of Being on a Restricted Business List
A critical concern is being listed on Stripe’s Restricted or Prohibited Business List. Stripe will likely close your account after underwriting if your business falls into this category, regardless of any transactions processed. This action typically results in held funds, creating significant operational disruptions. Stripe has a list on their website before signing up merchants should review the list many services like Quickbooks and Shopify also use Stripe as a processor. This tip can save you time and money!
Finding Solutions with Nationwide Payment Systems
Despite these challenges, having your account closed by Stripe doesn’t mean the end of your ability to process payments. Turning to a company like Nationwide Payment Systems can be a viable solution. Specializing in working with multiple banks, they cater to low-risk and high-risk merchants, providing a range of payment processing solutions that extend beyond the limitations of a single provider.
Diversifying Your Payment Processing Options
The key takeaway for any business is that relying solely on one company for payment processing, especially if conducting high-volume transactions, is risky. Diversifying your payment processing options with the help of experts like Nationwide Payment Systems not only secures your operations but also ensures you have the flexibility to handle any volume and mitigate risks associated with payment processing shutdowns.
This blog is designed to inform you about potential reasons for Stripe closing your account and how to mitigate these issues. For businesses affected, exploring comprehensive solutions like those offered by Nationwide Payment Systems can provide security and continuity in your payment processing needs.
