This is a common fraud prevention practice that we don’t tend to penalize processors for, but it seems that Stripe does not effectively communicate its reserve policies to merchants or warn them when a cash reserve might be withheld.
Merchants should be aware that Stripe reserves the right to “change the Payout Schedule or suspend payouts to your Bank Account should we determine it is necessary due to pending disputes, excessive or anticipated excessive Chargebacks or refunds, or other suspicious activity associated with your use of the Service or if required by law or court order,” according to its terms of service.
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Seventy-five of these complaints were successfully resolved with assistance, while 342 complaints either were not resolved to the merchant’s satisfaction or did not receive a final response from the merchant.
Like Square, the company’s standard policies regarding fraud prevention and prohibited business activities appear to be cause for complaint among many merchants.
Two specific problems have been consistently reported in the complaints below this review and on other consumer protection websites.
Common issues include sudden cancellation of merchant accounts, reserves being withheld without notice, and difficulty reaching customer support in a timely fashion.
Complainants who have signed up with Stripe through Shopify also seem to have some trouble activating the “Authorize Only” fraud prevention setting, with both Stripe and Shopify blaming each other for this setting’s malfunction.