2023/2024 US updates for connected accounts

In October 2023, we communicated upcoming changes to verification requirements for platforms responsible for gathering verification requirements for connected accounts. Below are details on the upcoming changes and what you need to do to ensure your connected accounts can continue to accept card payments and receive payouts.

What’s changing?

Here’s what’s changing about how Stripe verifies business information for US connected accounts accepting card payments:

• The information required from sole proprietorships, single-member LLCs, and public companies
• How we obtain legal guardian consent for accounts opened by minors
• How we verify business information and provide detailed verification responses
• The threshold at which we verify tax identification numbers (TINs)
• How we prefill statement descriptors and statement descriptor prefixes

These changes will affect all users with the card_payments capability enabled in the US. Read more details about the changes.

Timeline and required action

The steps you need to take depend on how you onboard your connected accounts.

Platforms using API-based onboarding

The Due date in Accounts to review marks the date when updated verification requirements become active for that account. In the API this will appear as requirements moving from future_requirements to requirements.

Beginning on the due date, accounts will have 14 days to satisfy the updated requirements before their payouts will be paused (T+14) and an additional 14 days until their payments are paused (T+28). For connected accounts with a due date of April 16, the key dates are as follows:

In the sample timeline above, we are showing the dates for a connected account with a due date of April 16. As a reminder, you may see different due dates in the Accounts to review page for your accounts depending on how they are grouped.

Modifying your onboarding flow

There are a few ways to modify your onboarding flow to satisfy the updated requirements:

• Embedded components: Add our new embedded onboarding components to your platform. They’re fully customizable, can be installed quickly, and handle verification requirements updates automatically.
• Stripe-hosted onboarding: Send US accounts to an onboarding experience built and hosted by Stripe. Stripe-hosted onboarding adapts to handle verification requirements updates automatically.
• API-based onboarding: Modify your existing onboarding flow using detailed verification responses from the Accounts API. You’ll need to update your onboarding manually whenever requirements change.

Platforms using onboarding built by Stripe

The Due date in Accounts to review marks the date when updated verification requirements become active for that account. In the API this will appear as requirements moving from future_requirements to requirements.

Beginning on the due date, accounts will have 14 days to satisfy the updated requirements before their payouts will be paused (T+14) and an additional 14 days until their payments are paused (T+28). For connected accounts with a due date of April 16, the key dates are as follows:

In the sample timeline above, we are showing the dates for a connected account with a due date of April 16. As a reminder, you may see different due dates in the Accounts to review page for your accounts depending on how they are grouped.

Frequently asked questions

Which types of connected accounts are affected by these updated requirements?

These updated requirements apply to all accounts with the card_payments capability enabled in the US.

What happens if I don’t collect this information?

Starting on April 16, 2024, payments and payouts will be paused for any connected accounts with outstanding requirements.

Are any exceptions to the requirements or deadlines possible?

No, there are no exceptions to the requirements or deadlines.

How many of my connected accounts are affected by this change? Which specific connect accounts are affected?

By January 16, 2024, your Dashboard and the Accounts API will show which of your US connected accounts need to provide updated information.

I also have connected accounts created with Stripe-hosted onboarding. Does this change impact those accounts?

There's no action for you to take for your connected accounts that complete onboarding hosted by Stripe. Starting October 24, 2023, your Stripe onboarding flow will automatically update to handle changing requirements. We'll reach out to any connected accounts that need to provide updated business information.

Why is this happening?

Payments regulations aim to create a safer, more secure financial ecosystem by helping prevent crimes like money laundering, fraud, and tax evasion. Stripe has certain Know Your Customer (KYC) obligations that require us to collect, verify, and maintain identity information about our users, and for any individuals who ultimately own, control, or direct them. These requirements are frequently updated by Stripe, financial service regulators, card networks, and other financial institutions.

Earlier in the year I was told that requirements were changing in Canada, India, Brazil, and Singapore—what is happening with these countries?

To help you prioritize new requirements for US accounts, we’ve extended the deadlines for new onboarding requirements in Canada, Singapore, India, and Brazil. See our roadmap for the latest in changing global requirements.

My connected accounts don’t need to accept card payments. Do these requirements still apply to me?

If your US connected accounts don't need to accept card payments, you can unrequest the card_payments capability for them. If you unrequest card_payments in the US, the updated requirements wouldn't apply to your connected accounts, and you wouldn't need to adjust your integration or collect updated information from them.

I use Stripe Issuing or Treasury, but my connected accounts don’t accept card payments. Do these requirements still apply to me?

If you have any US connected accounts with the card_payments capability enabled, these requirements will apply to you. But Stripe Issuing and Treasury don’t require an active card_payments capability. That means if one of your connected accounts with card_payments enabled fails to meet the new verification requirements, the Issuing and Treasury capabilities will remain active, and the account can continue to use Issuing and Treasury as normal.

If you don’t require payment acceptance for your connected accounts, you can unrequest card_payments capability for your US accounts and update your integration to stop request card_payments for new accounts.

Will requirements continue to change?

Yes, as global requirements change, we expect onboarding requirements to continue changing as well. If you use embedded onboarding components or Stripe-hosted onboarding, then Stripe automatically updates your onboarding flow to handle the latest verification requirements. If you use API-based onboarding, you’ll need to manually modify your onboarding flow whenever requirements change.

What features will be available to help me meet the updated requirements? When will they be available?

• October 18, 2023: New API available to allow future_requirements to unblock charges. New verification errors are accessible via requirements.errors and future_requirements.errors.
• October 18, 2023: New Connect Dashboard overview page and task list to help you manage updates to verification requirements.

• January 16, 2024: Accounts to Review list in Dashboard displays all US connected accounts with outstanding requirements. Outstanding requirements for connected accounts that are Platform-verified are available via future_requirements. Platforms can download links to send connected accounts to collect updated business information.

What about accounts who have already provided an SSN that Stripe has verified? ALT. Why are account who have already provided an SSN that Stripe has verified appearing as eventually_due?

In cases where the person is currently verified and has previously provided the last 4 SSN or ITIN, the full 9-digit SSN or ITIN will be required for verification at the $500K threshold.

You’ll see a requirement for full SSN or ITIN appear as eventually_due for accounts below this threshold.