We require additional information from some businesses who operate in highly regulated industries or those with a higher risk for fraud. The information you provide helps us find ways to help your business stay compliant and reduce your operating risk in that industry. It is important to provide those insights as soon as possible for the best experience.
Stripe takes privacy and security seriously. The Privacy Policy outlines how personal data is collected, used, retained, disclosed, and safeguarded.
What are beneficial owners? Why do you need this information?
To comply with banking guidelines, we are required to learn more about the individuals who ultimately have an ownership stake in your company. This means if one of your company’s owners is a legal entity (such as a trust or holding company) we need to know about the owners of that legal entity. Another example is, if you own 60% of Company A, which owns 50% of Company B, you are a beneficial owner of Company B and your percentage ownership is 30%.
The exact rules vary by country, but beneficial owners typically include individuals who:
- Own a significant percentage of your company (often 25% or more), and/or
- Exercise significant control over your company. These individuals are responsible for managing and directing the business and may include executive officers or senior managers, such as a CEO, CFO, COO, Managing Member, General Partner, President, Vice President, or Treasurer.
You can read more about beneficial owners on the Federal Register’s Customer Due Diligence Requirements.
Why do you want to know about my shipping licenses and legal formation? I don’t know if I need one.
Certain items cannot be shipped without an acquiring license and authorization. For example, there are many varying state and country laws and regulations that govern the shipping and sales of alcohol. It is important to ensure that you check the rules of your shipping provider and have all the licenses and documents needed to carry out your business. Similarly, certain industries like financial services, and telemedicine require specific legal formation or licenses to operate. This information is important to ensure you are compliant with any legal requirements applicable to businesses operating in your industry. Additionally, this information helps us understand and support your business needs with a safe Stripe account.
If you are not sure if the product you are selling has shipping restrictions, browse the lists below and see if your product is mentioned. If it is, you might need to take additional measures so your products are safe and legal to ship.
In some industries, businesses require specific licenses to operate legally. These licenses ensure you are compliant with all required regulations and can process payments with your platform.
Why do you want to know about my suppliers and vendors?
This gives us a better sense of your risk level since certain distribution flows could signal higher rates of disputes or fraud. Dropshipping is an example: A business might purchase products from multiple vendors but not know exactly when vendors ship products. This may delay a product delivery and ultimately lead to higher dispute rates.
Why do you want to know about my refund policy?
Your refund policy helps us assess the risk of disputes for your business. Whenever a business accepts payments online, there is the risk that a cardholder will dispute a purchase if they’re unsure how to get a refund. We have found that a clear and well-communicated refund policy can help prevent disputes. Learn more about creating an effective refund policy.
Why are you asking me about fraud? Doesn’t Stripe take care of that?
Unfortunately, all businesses are susceptible to fraud. Business owners should take preventative measures to fight fraud and resolve disputes. Fortunately, there are simple ways to protect your business.
For instance, a customer may think your business is engaged in fraudulent activity if they do not recognize a charge. To prevent these misunderstandings and unintentionally increase your dispute rate, business owners can write clear credit card statement descriptors and make refund policies accessible.
Why do you need to know about my typical customers? Isn’t that personal information?
By knowing more about your customers, we can determine whether your business may be more susceptible to fraud and ensure you are compliant with any applicable customer age restrictions. As a reminder, Stripe takes privacy of your business and customers seriously.
Why do you want to know about my processing volume, chargeback/dispute rates, and refund rates? I’m a new business and don’t have this information.
This information helps us understand potential dispute rates. Based on industry standards, it may be difficult for us to support businesses with a customer dispute rate above 1% (by volume or count).
That said, we understand that it may be difficult to provide transaction details if you are just starting out. We ask that you provide any estimates possible based on information that’s available to you.
Additional information
For more information about an email you received asking for more business information or to take a certain action on your account, see: Common questions about outreach for account information