BBB Business Review

BBB Accredited Business since 05/31/2013

Stripe, Inc.

(888) 963-89553180 18th St STE 100, San FranciscoCA 94110-2043

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Description

This company offers payment processing services for websites and mobile apps, payment tools built for developers.

BBB Accreditation

A BBB Accredited Business since 05/31/2013

BBB has determined that Stripe, Inc. meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.

Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that lowered Stripe, Inc.'s rating include:

  • 105 complaints filed against business

Factors that raised Stripe, Inc.'s rating include:

  • Length of time business has been operating.
  • Response to 105 complaint(s) filed against business.
  • Resolution of complaint(s) filed against business.

Customer Complaints SummaryRead complaint details

105 complaints closed with BBB in last 3 years | 81 closed in last 12 months
Complaint TypeTotal Closed Complaints
Advertising / Sales Issues2
Billing / Collection Issues35
Delivery Issues3
Problems with Product / Service65
Guarantee / Warranty Issues0
Total Closed Complaints 105

Customer Reviews Summary Read customer reviews

4 Customer Reviews Customer Reviews on Stripe, Inc.

Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 4
Total Customer Reviews 4 Customer Reviews

Complaint Breakdown by Resolution

Complaint Resolution Log (105)BBB Closure Definitions
03/13/2015Problems with Product / Service | Read Complaint Details
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Complaint
Funds not being released even after due date of promised release From Stripe. No response after numerous attempt of contacting Stripe Support.
I'm new to Wave Accounting and processed my first sell. Stripe is the payment processor. I processed the payment on 2/12/2015 invoice# 2361. I went through all the steps and completed everything. The payment was a credit card which I processed in the amount of $7,991.33. Stripe process their fee in the amount of $232.05 leaving the amount to be deposited into my account $7,759.28. I haven't received the funds and it's been more than 5 days over the due date to release the funds. The date for the funds to be released was 02/18/2015 at 7pm.

I have sent numerous emails to see why they still have not released the fund but no success. Wave Accounting has even reached out to Stripe on my behalf but still no success because no one from Stripe is responding. Stripe promise to contact customers within 24hrs or earlier but no one reaching out to me. I've sent over 15 emails (which I have proof of) but I'm still being ignored. It's really fustrating for a company to ignore their customers.

ADDITIONAL DETAILS:
Case is being handled by another organization: Wave Accounting

ADDITIONAL DETAILS:
Case is being handled by another organization: Wave Accounting

Desired Settlement
I just want the funds to be released to so I can supply my customers with their order

Business Response
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.

03/09/2015Problems with Product / Service | Read Complaint Details
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Complaint
Stripe intercepted a payment from a customer to me, even though I have no stripe account and no agreement with stripe of any kind.
Stripe intercepted a payment from a customer to me, even though I have no stripe account and no agreement with stripe of any kind. They did this via their relationship with storenvy.com, who hosts my online store. To accomplish this, they create a false stripe account in my name, and then processed funds from my customer as if this was a legitimate account and as if I was an actual stripe customer. They then emailed me saying I must create an account, requiring me to agree to their terms and provide sensitive banking info and social security # etc.. to them. They threatened that I will not be able to receive payments going forward if I do not do this. According to storenvy, this is false, and I could have kept using paypal just fine except for this fake stripe account interfering. I am unable to collect the funds, and unable to close the stripe account created by stripe, and unable to turn it off in my store, unless I agree to their terms and create the account. I do not agree to any of their terms, and so I will not do so.

Desired Settlement
Two things need to be done:
1.) Refund my customer immediately, not in a week or a month. I have already shipped his item, so I could maintain my standards and keep my customer happy.

I will then invoice my customer through paypal.

2.) Remove all traces of any data related to me, shut down this fake account within stripe claiming to be me, and work with storenvy to ensure you never hijack one of my sales again.


Final Consumer Response
This was resolved, in a very slow and sloppy manner by the company and its partners. I still believe the business model of intercepting sales and holding funds hostage by creating fake accounts on behalf of businesses that do not use their services is extremely dishonest and potentially fatally damaging to small businesses and would urge anyone with a choice to look elsewhere for card processing needs.

03/05/2015Problems with Product / Service | Read Complaint Details
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Complaint
I used stripe to process a payment they hold it its been 6 days since they have it now,no response to Emails no Phone number it is deceptive business
I have a construction company located in Chicago i used stripe to process a payment when a client wants to pay via credit card, on Jan-XX-XXXX my client pay $2,700.00 after 3 days i noticed that the funds were still not being transferred to my checking account usually takes 2 days , so i decided to call them and ask them about the problem, and i was very disappointed when i couldn't get a hold of them except via email, i did send them a email about the problem and they have this quick response about getting back to you whiting 24 hrs or sooner.
its been already 3 days and i sent them more emails still no answer.
i needed the money to start a job and i couldn't, i have over $300.00 dls in overdraft fees from my bank as result of their poor attention to me as their client.
now my customer wants me to cancel the job if i don't start the work Monday.
please help me.
Thank you.

Desired Settlement
I want the funds to be transferred to my hceking account so i can do my job.

Business Response
We first received an email from the user on January 29th, in response to a message we originally sent on October 28th, 2014. Our message from October 28th informed the customer that his website could not be verified, and that we would be pausing any further transfers to his bank account until he could provide a website which we could verify, which he was asked to send in an email reply. We perform this type of verification to ensure that businesses processing payments with Stripe are compliant with our terms of service. This fact was clearly stated in the original message sent to the customer.

The message we received on January 29th (in response to our original message) noted that a payment in his account (authorized on January 26th) had not been transferred to his bank account. He did not answer any questions about his website or provide details we could verify. We responded on February 3rd, asking again for a website or online profile (eg Facebook or LinkedIn) we could verify in order to resume his transfers. When he got back to us on the 3rd, he informed us that he had already refunded the payment, and that he had been charged $400 on overdraft fees. It should be noted that at no point did we attempt to debit the user's bank account, and therefor the overdraft fees cannot be attributed to any action by Stripe. The last message we sent to the user was on February 4th, asking for further clarification. He did not respond to this message.

The user's transfers were paused as a result of his inaction on our message from October 28th. There is no evidence to suggest that Stripe is responsible for any overdraft fees incurred by the user.

03/02/2015Billing / Collection Issues | Read Complaint Details
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Complaint
Stripe owes us money. They closed our account, held our funds for 3 months and ignoring all further emails from us. We want our money back.
We opened a Stripe account back in October 2014 for our business. We passed *** security checks, Identity checks and provided Stripe with all our personal information. We started processing with Stripe at the start of November 2014 to find out 1 week after that Stripe does not support our business type. We received an email from ******* ****** stating that our account was in violation of sections B.5 in the Prohibited section and that we had 5 days to move our customer and find a new merchant provider. We quickly emailed ******* back asking for more specification and a break down to section B.5. ******* mentioned that we needed to be in line with FTC guidelines and that they did not support pseudo-pharmaceutical.
We contacted out web designers and made the changes needed to be in line with the FTC. We emailed ******* back and he got his team to review out website. This was his next response: Thanks for your response and sorry for the delay in getting back to you. I've re enabled transfers on your account, so you're all set. We were back in business with Stripe. 1 week after this email from ******* we received an email from ******** **** who mentioned that our account was getting shut down for being in violation of their Terms and Condition in section D.4 and C.3, and that we had another 5 days of processing before we would get closed down. We replied back 2 times to only find that our emails were getting ignored. This was our email: I am yet to hear back to my last 2 emails. After having a long talk with Visa and Mastercard today it has come to our knowledge that the following remains fact: 1) it is necessary for the merchant provider, in this case Stripe, to reply to all matters with-in 24 hours from Monday-Friday. All messages sent after closing on Friday through to Sunday 11:59PM will be addressed on the following Monday. 2) it is not appropriate for a merchant provider, in this case Stripe, to provide refunds to consumers without the consent of the individual who owns the said company, in this case myself, as he/she is liable for all costs owed to 3rd parties and by doing this against their will leaves them with a shortfall that was already their money.
3) money is not allowed to be held beyond the time mentioned in the merchants terms and conditions. In this case that would be 7 days. It states nowhere in your terms and conditions that you can hold our funds indefinitely and process refunds on our behalf. 4) when a consumer agrees to the terms and conditions on the said companies website, in this case secure-bill.com, they are allowed to charge manually as there is no software that allows recurring billing in the format we require. 5) when an individual, in this case myself, is given a shut off time from a merchant provider, in this case Stripe, they must abide by that and allow all processing to continue and remainder to be transferred in full until the merchant provider, in this case Stripe, has fulfilled all funds owed. Our email was then passed ** to someone by the name of ******. This was her response: Your emails were forwarded on to me as a member of ********'s team I hope you don't mind me responding to you. I appreciate you getting in touch and providing your point of view on our decision. After reviewing your website, however, I'm afraid I can just reiterate ********'s assertion that we will be unable to work with you. Based on your website, the product you are selling falls into the psedo-pharmaeutical category of our prohibited business list. As these restrictions come directly from our banking partners, I'm afraid we don't have any wiggle room on the decision. I wish you the best as you move to another payment processor. We replied saying: Hello ******, I understand your decision and have no problem with having our accounts shutdown. My issue and concern is that our fund are not being transferred into our account. We were told numerous times by both ******* and ******** that we would have 5 days to fin

Desired Settlement
We are requesting that our entire Stripe Account Balance be released to our Bank Account ASAP! We have waited over 3 months for our funds.

Business Response
We acknowledge that this user experienced some communication delays, and we apologize for the confusion this caused.

In this case, there were two concurrent issues at play: First, the user's product fell into the gray area of businesses prohibited by our Terms of Service (https://stripe.com/terms#prohibited-businesses). Second, while we can't go into detail on our verification methods, many of the charges being processed posed a considerable chargeback risk. Ultimately, after multiple thorough reviews of the account, and consulting our compliance team, it was decided that the business was, in fact, a violation of our Terms. During the transitioning-out period, however, many charges were processed that were identified as posing significant chargeback risk; with this new information, the state of the account and our ability to facilitate an immediate transfer of funds had to be reevaluated. For more information on our reserve policy, please visit: https://stripe.com/terms#reserves

Since these events, the chargeback rate on this account has risen to more than triple the maximum threshold allowed by Visa and MasterCard. We have complied with the requests of the user to transfer the remaining funds, and are no longer instituting a hold, though the account and bank account information have since been deleted by the user. We encourage the user to reach out to us to make alternative arrangements for the fractional balance that remains.


03/02/2015Billing / Collection Issues | Read Complaint Details
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Complaint
Stripe has failed to pay the money owed to me. I have over $700 owing and after many unsuccessful email attempts I am forced to deal with it this way.
I have a small shop on Storenvy and signed up for Stripe. It states that on Jan 22 I was paid $69.63 and on Jan 23 I was paid $133.84. They both say they were successfully transferred into my account. I called my bank because it wasn't showing up and there was no money trying to enter. We then looked into my account information in the Stripe dashboard and they have my account connected to someone else's instead, so they are receiving my money. I am not getting any response from them and I am so livid!

I have another transfer depositing into my account on January 30th and I'm going to bet that another $556.02 gets transferred to the wrong account again.

I can not believe a reputable business does not have a contact phone number. This could be solved in 5 minutes over the phone yet there is NO way to get ahold of anyone so I am forced to leave this complaint.

Desired Settlement
I want all my money transferred to my rightful account so I can close it and get back to Paypal.

Business Response
Stripe attempted to transfer funds into this user's Bank of Nova Scotia account on January 22nd (for $69.63) and 23rd (for $133.84). Both of these transfers were returned to us, by the bank, with the error "No Account". The account and routing numbers for this account were provided directly by the user on October 28, 2014.

We informed the user via email that these transfers had failed. She updated her bank account details on January 24, 2015. We retried a transfer for $759.49 (the account's balance, including that of the previously failed transfers) on February 2nd. This transfer has not been returned to us, as of today, so it would appear that this transfer completed successfully.

We have communicated this to our user via email and the status of her transfers are available in her account dashboard.

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03/17/2015Problems with Product / Service | Read Complaint Details
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Complaint
A 60 day hold put on $1,570.91 transaction that was supposed to clear in 7 days after account was approved.
Stripe Account Name: Digixstreamsmartbox

I applied for a Stripe account to process transactions for my website digixstreamsmartbox.com. I was approved instantly with a message that if I processed over $80,000 per month, I should contact them. After processing $9111.91 in my first week, Stripe decided they did not like my website and they were going to put a 60 day hold on all transactions and terminate me. I have processed payments with Paypal with no problem and have just been approved by them to process $2000-$5000 per transaction with $500,000 annual revenue. I had no choice but to refund most of my transactions (very inconvenient for my customer Micheal Luis who had purchased 50 Android Smart Boxes for $7350 with UPS 2 Day Air Delivery). They have now put a 60 day hold on $1570.91.

Desired Settlement
Transfer of $1,570.91 in a week as originally stated.

Business Response
Hi *****,

We were very sorry to tell you on February 12th that we would no longer be able to offer service to you. Unfortunately, after looking at the details of your initial charges, we identified strong signals that your account may be prone to future chargebacks.

As we note in our Terms of Service, we reserve the right to delay payments on funds, or to discontinue service if we determine that an account poses a high risk of chargebacks. This is a precaution that we must take in order to remain in good standing with our banking partners, who require that merchants stay under the industry average chargeback rate of 1%.

You can find our Terms of Service here:

https://stripe.com/us/terms

We don't take actions like this lightly, and are sorry that we won't be able to serve your business moving forward.

To clarify a bit about our message to you while you were signing up with us: when we mentioned $80,000 per month during your sign-up process, we were referring to a threshold we have for volume discounts. Once users begin processing that amount of money, we're able to better predict the cost of supporting their business. This often allows us to identify cost efficiencies that can lead to lower rates.

In your particular case, we offered 14 days to continue processing charges, so that you could find and implement another paymentn solution. We also set a payout schedule of 60 days for any funds in your account balance. With delayed schedules like this, we use the additional time to guard against any chargebacks or refunds on the account. You can find more information in our terms about this sort of delay:

https://stripe.com/us/terms#payout-schedule

As we mentioned in our previous communications, we're very sorry to have had to discontinue service, and wish you well in your future endeavors.

Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Your approach of instant approving accounts and clamping down on them after they start processing without even a phone call for an investigation is fundamentally wrong and fraudulent.

Final Business Response
Hi *******,

We are very sorry that you and your customer experienced these delays with your refund.

This refund appears to have been affected by a bug in one of our banking partners' refund systems that caused a small handful of refunds to initially fail. I'm terribly sorry about this we work hard to ensure that issues like this never occur in the first place. In this case, our efforts were unsuccessful.

Having said that, I can assure you that we have taken immediate action to remedy the underlying bug and ensure that it never happens again. Your customer should have already received their refund.

We consider any problems that affect your customers to be the very worst kind of issue. By causing confusion for your customer here, we failed to deliver on our most important aim. We are performing a full internal analysis of our processes and systems here to make sure that issues like this do not happen again.

Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
This response is directed towards another complaint.

03/05/2015Problems with Product / Service | Read Complaint Details
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Complaint
Merchant will not return calls or answer emails although my email subject line read 'Urgent and Emergency'.
There was an error between this merchant and my website. Somehow my customers credit cards were charged between 4-19 times each for the same purchase. This incident occured on Jan 12th. I immediately tried contact Stripe with no luck whatsoever. I sent an email with the subject line of 'Emergency'. I asked them to please contact me as soon as possible to resolve the issue. I waited over 24 hours with no reply. I spent 11 hours refunding over $25k in refunds to my customers, both foreign and domestic over the next two days. I emailed again and again with the subject line "urgent". Still no replies. I made sure to leave my phone number and email again, just in case. Due to the exchange rate of the foreign consumers, I am paying out of pocket for the exchange rates from the time they purchased and the time they received their refunds. I am also being held responsible for overdraft fees by my customers because the overcharges to their account has left them with a negative balance. This is ridiculous and I feel that my needs as a member are not important. I'd like some type of communication with a live representative immediately.

Desired Settlement
I would like to be returned $413.77 for the charges I have to return to my customers for overdraft charges and exchange rate differences.

Business Response
We first received an email from the user on January 12, 2015. She stated that she needed help processing refunds, due to a glitch on her website that erroneously processed orders multiple times. A member of our support team responded to her email on January 12, 2015, explaining how to refund the charges from her dashboard.

The user wrote back in again on January 13, 2015 in a separate thread saying that she hadn't heard back from us, while reiterating her refund situation, and again on January 14, 2015 (this time threatening to cancel her account and leave negative reviews unless we respond). On January 14, 2015, another support representative emailed her directly via Gmail, in hopes of reaching her, and included the email sent by the first support rep, to reassure her that we did indeed respond.

Our email logs confirm that the emails were sent without failure. It's possible that the customer did not notice the response in her inbox and/or spam folders.

Consumer Response
I actually need to increase my claim amount due to additional fees charged to my account by stripe.
Their credit card website had errors and charged my customers between 3 and 22 times each. I refunded all of those immediately but stripe charged ME the fees for those overcharge orders AND fees to refund them (over $1500 in fees). How do I add these fees to my claim?


Final Business Response
In the case where a Stripe user refunds a charge, we return all fees associated with that charge to our user. This is a practice that we publicly document here: https://support.stripe.com/questions/is-there-a-fee-for-processing-a-refund This being the case, we are not aware of the fees (associated with issuing refunds) that this user is referring to in her complaint.

Regarding the assertion that this user's customers were charged multiple times due to an error on Stripe's end, we have to disagree. In emails to our support team, she states that this issue was caused by a "glitch" on her website. We have reviewed her account logs and are fully convinced that this problem was caused, unfortunately, by user error and not some systematic malfunction on Stripe's end.

Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
The error given on stripes website are the same errors that popped up when users checked out. In a panic, I thought it was the website but upon investigation, this ONLY happened to my credit card users that checked out using Stripe.

My members were charged up to 20+ times each, leading to clearing their bank account and charging overdraft fees that I returned to them (in the amount Im requesting back from you).. because that is what GOOD CUSTOMER SERVICE does! It was not MY fault, it was the website's fault but in order to keep business, I did the RIGHT THING... something your company should have been the one to do.

As far as this company's response, there has been absolutely NO proposed resolution to agree to. All I hear in their reply is, "its not my fault, suck it up. Your business is not important to me". This company is full of excuses.

Stripe also has a lot of gray areas in their website terms regarding their 'reserves' and just take money out of your account with no warning.

Furthermore, I find it highly irresponsible of a business to not have some sort of dedicated customer phone support number (the number listed on the BBB site is bogus and doesn't actually get answered, nor does it get messages returned). They seem to go to the same place that santa clause letters go to. They don't even an email service that returns customer inquiries. This has been going on for MONTHS and I have still YET to receive an email or phone call, regardless of me leaving multiple email addresses and phone number. They want to take our money but not deal with the customer service side.

Im also quite confused how a company can have an A rating on the BBB website yet hold 79 complaints just since their business opening in 2013. A majority of those fall into the same category as my complaint yet they allowed to continue the same practice, take money and not return money that should be owed to their customers.

This company has made NO good faith efforts to make anything right. They already lied about replying to emails and they are just brushing me off. This is ridiculous. Please return the fees I am asking for and stop with the lies and excuses.

03/05/2015Billing / Collection Issues | Read Complaint Details
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Complaint
Stripe is holding our money without VALID REASON as none of our customers has complained about the payments. There's no Chargebacks AT ALL!
uptownlabelsboutique.bigcartel

This Is SOME B.S.!

I received an email on December 12th, 2014 form a ******** from STRIPE i believe, stating that my accepting payments abilities will be stopped by Stripe and my ACCOUNT CLOSED, saying that it feels these are fraudulent transactions liable for a CHARGE BACK! First of ALL Every card number that comes through my store is legitimate funds. I make it clear to potential buyers that when purchasing from my store ==> TO PURCHASE A GIFT CARD SPECIFICALLY AMERICAN EXPRESS, OR VISA, OR MASTERCARD GIFT CARD then make the purchase on my website with that Tender, because of fear of receiving a Chargeback, i rather not take a personal credit card that can be disputed! If i was to receive a payment from Tender other than a Giftcard I would refund that payment immediately to the customer. From being in the retail business for some years I see with gift cards I have never received a charge back before. Please fix this situation. I need my FUNDS. Thank you and I've shipped these people there products. STRIPE is very unprofessional, i have wrote them since the beginning and 5 emails later i still SEE NO RESPONSE. This company needs a phone number for customers, and needs to stop assuming people transactions are not legitimate on their on. I'm feeling like if this BBB website was not up, STRIPE would just hold people's money for the **** of it. Probably receiving interest off it too.

Then on December 15, 2014 YOU ALL DEPOSITED THE MONEY IN MY ACCOUNT AND TOOK IT RIGHT BACK OUT, AND NOBODY IS COMMUNICATING WITH ME! TO TALK ABOUT REFUNDING THE ORIGINAL CARDS BACK.

SOMEBODY NEEDS TO GET IN CONTACT WITH ME. EVERY CHARGE I PROCESSED WAS AUTHORIZED BY THE CLIENT! AFTER THEY CONTACTED ME I MADE THEM GO BUY A PREPAID GIFT/CREDIT CARD TO MAKE THEIR PURCHASES. SO HOW LONG BEFORE MY MONEY IS TRANSFERRED TO ME? I NEED TO UPDATE MY BANK INFORMATION

NOW IT'S SAYING THE FUNDS CAN'T EVEN BE REFUNDED TO THE PEOPLE CARDS. SOMEBODY NEEDS TO LOOK MANUALLY INTO THIS. MY STORE IS JUST NOW ABOUT TO TAKE OFF AND BE A SUCCESS. CAN SOMEBODY UNDO THIS MIX UP! I'M A GREAT CLIENT.


MY STRIPE ACCOUNT IS SET UP FROM MY BIG CARTEL ACCOUNT: uptownlabelsboutique.bigcartel

Desired Settlement
I would like the CREDIT of $3454.06 finally transferred over to my SUNTRUST BANK ACCOUNT on file, or i would like the full volume of $3500 refunded to my CUSTOMERS cards!

I NEED ALSO AN EXPLANATION OF WHY MY STRIPE ACCOUNT IS CLOSED, AND IF I'M ELIGIBLE TO REOPEN IT OR APPLY FOR A NEW ONE.

I JUST WANT MY MONEY!!!!!!! I HAVE EMAILED AND NOBODY RESPONDS. THIS IS VERY STRESSFUL. ESPECIALLY WHEN I DIDN'T HAVE MY MONEY FOR THE HOLIDAYS LIKE I'VE ASSUMED AND I HAVE SHIPPED OUT THESE PRODUCTS TO THE CUSTOMERS. I COULDN'T EVEN TAKE ANY MORE SALES ON MY SITE, UNTIL THIS ISSUE IS RESOLVED. THIS HAS REALLY PUT A DENT IN THINGS. PLEASE RESPOND.

Business Response
The complainant signed up for a Stripe account on 12/06/2014. On December 12th, in the course of Stripe's standard review process, Stripe identified strong signals that the account was processing unauthorized transactions. At this time, it was determined that the complainant's account posed too high of a risk for Stripe to support. As a result, the complainant was notified that all payments that had not already been transferred to the complainant's bank account would be refunded to the appropriate cardholders. Stripe takes this precaution in the event that an overwhelming number of signals point to fraudulent or suspicious activity originating from the merchant. Information on Stripe's end indicates these refunds were successful, and Stripe did not communicate to the complainant that they were not. To the contrary, Stripe clearly communicated to the complainant that the charges would be refunded, and suggested getting in touch with customers to arrange an alternate means of payment.

The complainant can refer to the relevant part of our terms of service here:
https://stripe.com/us/terms#termination


Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
THIS IS A LIE FROM THIS COMPANY! NONE OF THE CARDS WERE REFUNDED. I WENT TO THE GIFT CARD WEBSITE AND TYPE IN THE CARD NUMBERS AND THE SECURITY CODE THE CUSTOMERS GAVE ME AND IT SHOWS THE PAYMENT WAS TOOKEN OFF THE CARDS 12/10/2014, AND SHOWS NO REFUNDS. ALSO WHEN I JUST LOGGED INTO STRIPES NETWORK IT SHOWS I HAVE A BALANCE IN MY ACCOUNT OF $3,454.06 WAITING TO GO OUT AS A NEXT TRANSFER. AT THE TIME WHEN I RECEIVED THE EMAIL FROM STRIPE THEY HAD ALREADY SENT THE MONEY OUT TO MY H&R BLOCK ACCOUNT AT THE TIME, AND DID A REVERSAL THAT SAME DAY IT WENT IN, AND NOW THEY HAVE MY MONEY TIED UP BEING HELD. I WOULD LIKE STIRPE TO INVESTIGATE THIS AND TO RELEASE MY MONEY TO MY WELLS FARGO CHECKING ACCOUNT ON FILE. I HAVE ALREADY SOLD THESE ITEMS TO CLIENTS AND NOW IT'S OVER 30 DAYS AND AS STRIPE CAN SEE THERE HAS NOT BEEN ANY "FRAUDULENT ACTIVITY FOUND", NO CHARGE BACKS OR NOTHING. THIS HAS REALLY PUT A DENT ON MY BUSINESS AND ME TAKING CARD PAYMENTS AND SO ON. I NEED THIS SITUATION HANDLED. I DO NOT HAVE MY MONEY. AND AGAIN THE CARDS WERE NOT REFUNDED THAT IS WHY WHEN FROM THE BEGINNING I HAVE TRIED TO REFUND THE CARDS MYSELF I ALWAYS GOT AND STILL GETS THIS MESSAGE "This account is not currently able to refund charges. Please contact *******@stripe.com for further information."! I AM CONVINCED STRIPE HAS STOLEN MY MONEY, BECAUSE THEIR'S NO LOG ENTRY IN MY DASHBOARD THAT STATES THE CARDS WERE REFUNDED. SOMEBODY FROM STRIPE NEEDS TO LOOK INTO THIS ONE ON ONE. I AM MISSING MY MONEY, AND MY CUSTOMERS PROVIDED ME ALL THE GIFT CARD NUMBERS AND SECURITY CODES SO I CAN CHECK MYSELF AND THEIRS NO TRANSACTION HISTORY THAT SHOWS A "REFUND"!!!!! IT'S BEEN 30+ DAYS AND I HAVE BEEN WITHOUT MY MONEY. I WOULD LIKE MY BALANCE TRANSFERRED TO MY WELLS FARGO CHECKING ACCOUNT ON FILE.

Final Business Response
As a Stripe representative explained in Stripe's original response, during the verification process of this Stripe's user's account, a Stripe representative identified suspicious activity on the complainant's account that is consistent with fraudulent behavior, specifically the running of charges without authorization from the original credit card holders. After observing this behavior, a Stripe representative terminated the complainant's account, and, as Stripe believes the complainant's account to be fraudulent, no additional funds will be transferred to the complainant's bank account. Again the relevant section of the Stripe Terms of Service can be found here: https://stripe.com/us/terms#a-idsectiondasection-d-license-termination-and-other-general-legal-terms

If cardholders have not yet received refunds and would like to receive them, their best course of action would be to contact their credit card companies to initiate disputes and receive their funds through that process.

Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Stripe is the company that is fraudulent! Stripe keeps saying that they think it was fraudulent transactions. Where are the FACTS? Have there been a dispute? My customers purchased gift cards and provided me the numbers to run there transactions. I have written permission from the customers, signed authorization slips giving me permission. This money was NEVER REFUNDED TO MY CUSTOMERS CARDS! && stripe knows what they are doing and are probably aware because there gift cards and it's been over 30 days, a dispute can not be claimed. SOMEBODY NEEDS TO PROVIDE A TELEPHONE NUMBER! This is really upsetting. There was no fraud activity. I was just trying to make a respectful online busines to further my horizon. BBB please look into this I'm begging you. It can't be a coincidence for the last 2 years EVERYBODY IS COMPLAINING ABOUT STRIPE with the same situations. It shouldn't take for another company to be involved to have things resolved. It's not professional!!! I NEED MY MONEY AND WANT MY MONEY IN MY BANK ACCOUNT!! Stripe knows they did not refund the charges either. Because they would see if they went back or not. Till this day THE GIFT CARDS have a empty balance not full!!!!


I JUST WANT MY MONEY! Stripe responses are not getting to my point. They keep going around the situation giving general responces. I want a personal response for my situation. THIS REALY PUT A DENT ON MY BUSINESS.

03/03/2015Billing / Collection Issues | Read Complaint Details
X

Complaint
Stripe is charging back my businesses account because a customer claimed 3 transactions are fraudulent and I have no way to dispute at least 1 charge.
My store, Device Power LLC, processed 4 transactions for a customer, ****** ********* and Stripe handled the payment for each transaction. Apparently, Mr. ******** has claimed that 3 of the orders were fraudulent, and Stripe has automatically taken money back for the orders. I was told to submit evidence that the orders were valid, which I have done for one order so far. Last week, Stipe sent me the following e-mail message: "Time is running out to submit evidence on the dispute for charge *************************** (made on November 01, 2014 (UTC)). Evidence is due by December 12, 2014 (UTC)."
I have been trying to submit a PDF file as evidence for this particular order all day today (12/12/14) and have been unable to do so since Stripe seems to have locked me out of my account. This method is my ONLY recourse to fight this payment dispute, and if I had been able to submit the evidence, I then would have to wait for the other parties bank to either approve or deny the validity of the chargeback.
Stripe has falsely presented itself as a legitimate credit card processing company for small businesses such as mine to provide "feature-packed payments" with "seamless security" and "trusted, secure and headache-free" processing (these quotes are directly taken from https://stripe.com/us/features. They also state that their service has "Proven fraud protection" "Stripe actively works to protect your business from fraudulent charges and monitors suspicious transactions." These false claims lulled me into a false sense of security and when this customer placed the 4 orders, I never questioned the legitimacy of each of them since I believed from Stripe's advertising that the company would not let fraudulent charges be processed through their service. I was shocked to find that starting 7/22/14 and continuing through 11/7/14 there were 39 'fake' transactions that were continuously processed by Stripe under names like ******* ***** (14 orders from 7/22-8/24), *** ******* (21 orders on 10/24) and ******* ******** (4 orders on 11/7). Luckily, these orders failed, but Stripe has never contacted me or let me know in any way that this pattern of fraudulent transactions was or had occurred, so I could have further investigated the 4 orders by ****** ********, which Stripe passed ** as legitimate orders.

The following is a list of the 4 orders placed by ****** ********: Order **** - ****** ******** $269.35 10th Nov 2014 (order for bluetooth speakers, sd memory cards, and iphone plugs); Order #*** - ****** ******** $377.35 4th Nov 2014 (order for bluetooth headphones); Order #*** - ****** ******** $134.18 1st Nov 2014 (order for bluetooth headphone & memory cards); and Order #*** - ****** ******** $105.19 30th Oct 2014 (order for a camcorder). The following transactions have been disputed and Stripe has charged the following chargeback fees: Order #*** on 11/19/14 for $377.35 + $26.24 fee = $392.35 (this amount was taken from my account on 11/24/14); Order #*** disputed 11/26/14 for $134.18 + $19.19 fee = $149.18 (this is the order I cannot submit evidence for); Order #*** disputed 12/3/14 for $269.35 + $23.11 fee = $284.35 (evidence is due for this order by 12/19/14). All of the orders were shipped out by USPS Priority mail with tracking numbers that showed the items were delivered to the same address as the verified credit card billing address.

Desired Settlement
I am seeking a refund of $392.35 from Stripe as well as the dismissal of the rest of the chargeback amounts from any of these four transactions that they will be charging back to my bank account in the future; so far the total amount for future chargebacks is $433.53.

Business Response
We're very sorry to hear about the disputes associated with the complainant's orders. While Stripe will actively block payments that it knows to be fraudulent, it's ultimately a merchant's responsibility to ensure that they only accept transactions on behalf of legitimate customers. When a seller believes an order to be fraudulent, it's advisable to refund it before receiving a dispute from the card owner. In addition, as soon as Stripe learns that a seller has received a dispute, we'll send them an email informing them of the situation and providing information regarding how to contest it.

In this instance, the account has remained fully active since the seller signed up several months ago. Though he contacted our support team after the official dispute response window had ended, we explained on December 18th that we would still be happy to review the evidence that the seller had collected and manually submit it on his behalf. As of today, we still haven't received a response to that message.

Going forward, the seller can also view a list of both successful and failed transactions here:
https://dashboard.stripe.com/payments

For additional information, we'd recommend viewing our support documentation about avoiding fraud and disputes:
https://support.stripe.com/questions/avoiding-fraud-and-disputes


Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Stripe's assertion that it is the merchant's responsibility to only accept transactions on behalf of legitimate customers ignores the fact that the merchant gets an extremely limited amount of information to make the decision whether a particular transaction is legitimate or not.

In my case, a customer placed 4 different transactions in which every bit of information was legitimate; the billing zip code and address matched the ship to zip code and address, the 3 digit pin number was verified, and the customer was contacted twice (and replied twice) to my e-mails. I submitted all of this evidence to Stripe before their deadline and they still did not find in my favor.

Stripe also maintains that if an order is believed to be fraudulent, that a merchant should refund the orders and not ship out the merchandise. In my case, even if I had enough evidence to say that the orders this customer placed were fraudulent before I shipped them out and I refunded the customer, I WOULD NOT be entitled to a refund of the transaction fees incurred from Stripe processing the orders in the first place! From my point of view, it appears that Stripe's Fraud Department is re-active instead of pro-active in monitoring for fraud meaning that businesses such as mine are "guinea pigs" for fraudulent orders. And despite the fact that I already submitted strong evidence to contest these disputes before their deadlines, the company is now saying that I should have sent another separate e-mail with my evidence on December 18th despite the fact that it took over a week to get a reply. Stripe's dispute system is a bureaucratic nightmare designed to cause the merchant to give up.

In this case, the BBB has asked me to provide a middle ground, which I will now do. I was seeking a refund of $392.35 and a dismissal of all future charges from Stripe, which amounted to $433.53 for a total of $825.88. The middle ground would be for each of us to be responsible for $412.94 which means that I would owe Stripe $41.18. If Stripe accepts, I will send a check in this amount to them immediately and will not pursue the matter further.

Final Business Response

While chargebacks are always frustrating the user's sentiments that Stripe's actions lulled him into a false sense of security is misplaced. Stripe's terms of service clearly and definitively state that the responsibility/burden for issues involving fraud sit with the merchant. 0

Additionally, contrary to what the user has stated, the user would have been entitled to a full refund of the transaction fees incurred on the orders in question, had he exercised due diligence and refunded these transactions accordingly. 1 Our terms of service also indicate that merchants will receive a full refund of Stripe fees paid, on transactions that are refunded. Following that, it's also apparent that these disputes incurred on different days, numerous days apart. Thus, there was the opportunity for this user to recognize that the first dispute was engaged by a customer who had two other charges. Thus, he had significant opportunity to refund those other two charges.

Lastly, as my colleague indicate in a prior response, the user failed to respond to our supports team's offer to manually upload his dispute evidence for him. 2 Unfortunately, we're unable to cover the cost of the disputes, as once again, it's against our policy to do so.

0 https://stripe.com/us/terms#security-and-fraud-controls,
1 https://support.stripe.com/questions/is-there-a-fee-for-processing-a-refund
2 http://cl.ly/image/1***********


Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
The Stripe representative indicated that there was an opportunity to recognize that these orders were fraudulent since they were a few days apart. This was not so. The first notice that there had been a disputed transaction was sent by Stripe Disputes on 11/19/14 which was 9 days after the last of the three orders had been placed, 11/1/14, 11/4/14, and 11/10/14. There was absolutely no way I could have known that these transactions were fraudulent based on the very limited information presented to me by Stripe.

The employee who has provided the latest response to my BBB complaint is also mistaken when they asserted that "Our terms of service also indicate that merchants will receive a full refund of Stripe fees paid, on transactions that are refunded". The following is an excerpt taken from Stripe's "Refund and Returns" section of it's Terms of Service located at https://stripe.com/us/terms:

"For processed refunds, Stripe will deduct the refund amount (including any applicable Fees) from (i) settlement funds owed to you from processing of other card transactions, or (ii) funds in any Reserve Account."

I do not see any part of their Terms of Service that indicates I am entitled to a refund of the transaction fees if I had refunded one or all of the orders processed through Stripe. It may be that Stripe has refunded these fees to selected individuals on a case by case basis, but it is not their policy to automatically refund these fees.

At this point, I have acted in a reasonable manner by meeting the company halfway as requested by the Better Business Bureau, but Stripe has been unwilling to cooperate. Therefore, I request that the BBB take action against Stripe in whatever way it deems necessary so that other small businesses and individuals do not fall into the same trap that I have this disreputable company.

01/28/2015Problems with Product / Service | Read Complaint Details
X

Complaint
transaction id. ***************************
shipped to verified billing address. but stripe dispute was closed in favor of buyer and i lost my $699
transaction id. ***************************
We have shipped the package to buyer's verified billing address,

*** E. ****** Street
XXXXX, ************, ************* United States

Furthermore, the package was also delivered and received by buyer on 22-Oct-2014
- 15:58 : Tracking proof: Fedex: XXXXXXXXXXXX -
(https://www.fedex.com/fedextrack/WTRK/index.html?tracknumbers=XXXXXXXXXXXX&locale=en_US&cntry_code=us&fdx=1490)

This is really unfair and as per the policy of stripe when we have shipped the item to buyer's billing address than why we have stripe counting dispute on me. stripe has refunded $699.99 to customer additionally charged me the dispute fee and i lost the items as well as the money. in my last disputes, stripe support team always ask me to ship the package to verified billing address that stripe shows on the transaction, we have shipped this item to the same shipping address and i dont know why they have agreed on that dispute. i have launched email to stripe and contacted them last day, i never get a respond from them. i am not satisfied with support assistance as well as not satisfied with the decision that stripe makes on all disputed. i can show you the history of my disputes i have lost almost $3000 on all my past disputed on stripe.
please help me in resolving this issue,

Desired Settlement
Reimburse me the refunded money!

give my money back

Business Response
To help clarify this process a bit, when a payment is disputed by a cardholder, we're notified by their bank, who automatically refunds the transaction. Stripe doesn't make the determination of who gets to keep the funds in a chargeback dispute. Your customer's bank doesthey consider evidence and decide to settle a dispute either in your favor or your customer's. Stripe helps you with this process by providing a method for submitting evidence and getting updates on the dispute status.

Our Terms of Service clearly state that users are responsible for any chargebacks on their payments: "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

If we had any additional information to offer about this dispute, we would. Unfortunately, banks don't often surface information about why disputes were lost to Stripe, so we simply don't have that kind of information available to pass on to users. To be clear Stripe does not have these funds; the cardholder's bank refunded the cardholder.

Because you are the party with the most information about your customer if they're someone you know, if they've purchased from you before, if their order is a normal one for their shipping address you're best equipped to determine whether or not a purchase is fraudulent. You have a better sense of your customers than any algorithm we could write ever would. Identifying when a credit card is being used by someone other than the cardholder can be difficult, and if you're ever suspicious about a purchase's validity going forward, a good rule of thumb is to issue a refund immediately in order to avoid getting hit with a chargeback.

Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
We understand this is our first time, stripe should compensate for atleast 50% of the loss, we are stripe user since so long and we have been doing good business!

this would be unfair to give the full loss to customer like this

and i already lost my product and money too!!

i hardly had good profits on those item and my whole business is in loss due to this case

i hope you can do something in such case. atleast stripe should compensate

awaiting for response

Final Business Response
Unfortunately, Stripe will not be able to refund any portion of the funds from these transactions/disputes. As our terms of service clearly and definitively state, that in the event of a disputed payment, the Stripe merchant is responsible for the full amount of payment for that dispute - https://stripe.com/us/terms#chargebacks

In addition, Stripe is also not liable for internal business decisions made by our merchants. In other words, Stripe handles payment processing - that's it. We don't provide shipping services for our merchants and it's entirely up to the merchant to verify the customers they're sending goods/merchandise too. This is also sound public policy. Because you are the party with the most information about your customer if they're someone you know, if they've purchased from you before, if their order is a normal one for their shipping address you're best equipped to determine whether or not a purchase is fraudulent. You have a better sense of your customers than any algorithm we could write ever would. Identifying when a credit card is being used by someone other than the cardholder can be difficult, and if you're ever suspicious about a purchase's validity going forward, a good rule of thumb is to issue a refund immediately in order to avoid getting hit with a chargeback. It would be unduly burdensome for our company to independently verify information about your customers, when we don't have any role in the creation, maintenance of your own business practices.

Accordingly, as indicated in our TOS we will not be refunding any of the money from these disputed payments.

Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Okay i understand the level of daily fraudulent, but how does we get compensated? This sound 100% in favor of stripe and i got some big disputes. i dont make good money against like this.

BBB, Please advice.

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Payment Processing Service, Mobile Apps

Additional Information

top
BBB file opened: 07/24/2012Business started: 04/13/2009
Type of Entity

Corporation

Incorporated: July 2011, DE

Business Management
Principal: Ms. Cristina Cordova (Business Development Director)
Number of Employees

140

Business Category

Payment Processing Service, Mobile Apps

Service Area

This company provide services National and International.

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Map & Directions

Address for Stripe, Inc.

3180 18th St STE 100

San Francisco, CA 94110-2043

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1 Locations

  • 3180 18th St STE 100 

    San Francisco, CA 94110-2043(888) 963-8955

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