Keeping your Stripe account healthy

You're ready to show your product to the world.

Your Stripe account is fully activated, and the payment links are ready.

The first few payments come through. But something happens.

The dreaded "your business presents a higher level of risk than Stripe can currently support..." lands in your inbox.

In short, you can no longer accept payments for your product via Stripe.

Sound familiar? If this has happened to you or fear you might experience the same, this post is for you. I'll break down:

Why does this happen?
How can you try to avoid it?
What to do next if this happens?

First and foremost, this article assumes your business model is allowed to transact with Stripe. The most accurate and up-to-date information is on their Prohibited and Restricted Businesses policies page. The rules for most are clear, so you're unlikely to find yourself in a grey area unless you also move money somehow, i.e., a payment platform built on top of Stripe.

Why does this happen?

Stripe plays a pivotal role in the ability of indie hackers like you and me to commerce on the internet. But that puts them in a tough spot: how do they know an account with no history that has never accepted a dollar on the internet to date is legitimate and trying to do good? Well, they don't.

So, that means special attention is paid to fresh accounts, and any remotely adverse actions are significantly weighted. For this reason, even a few refunds/declines/chargebacks can result in Stripe deeming your business "too high risk".

The number of people trying to "trick" the system significantly outweighs those genuinely trying to do good but unlucky. Unfortunately, you'll likely get an automated rejection here with little human intervention. But do not disappear; so long as you are above board, there is a way forward.

How can you try to avoid it?

Now that you know negative actions such as refunds/declines/chargebacks can tank a fresh account, here are some easy and simple things you can do.

Be conservative with the payments you allow. Be more restrictive with Stripe radar rules, such as requiring 3D security where possible and lowering the threshold for scoring.

Ensure there's friction to pay. While it sounds counterintuitive for SaaS products, please make it slightly challenging to give you money. Those with stolen card details to test on an unsuspecting site will only put in a little effort before moving on.

Be lenient with your policies. A chargeback at the start of your account is like a nuclear warhead, and you must avoid it like the plague. So make sure it's straightforward for customers to cancel their subscription self-serve and refund wherever possible if customers request it.

What to do next if this happens?

Try to reach out to Stripe through official and unofficial channels. Most folks at Stripe are lovely and would love to help where they could. Be creative and find ways to reach them to re-review your account; many have had luck with this in the past (including myself!).

If all else fails or Stripe doubles down on their decision, here are some alternatives you could try:

Paddle (MOR)
Lemon Squeezy (MOR)
Square
PayPal
PayPro Global

MOR: Merchant of Record

Who am I?

Hi! I'm Che, the co-founder and CEO of ChargebackStop. We help software companies manage the risk and deal with the pain of chargebacks. I know first-hand how complicated the world of payments is. Although companies like Stripe make it much easier, you can still do plenty to make it easier and safer for your business.