Business risk level considerations and evaluation

Stripe evaluates the risk of new and existing merchants on a regular basis and will take varying actions – from asking for more information, to setting a reserve, to closing your account – if we think the risk to support your business is too high.

How we define “risky”

Business risk varies for many reasons including the industry you are in, how far in advance your customers buy your products, and the reputation or history of your business thus far. We evaluate all of these components together to make a decision.

Risk often comes down to the potential for losses through either fraud or disputes, so we encourage you to read up on both before opening a Stripe account. We have a detailed Preventing Disputes and Fraud guide to share best practices and suggestions for how to minimize these issues.

What we look at

We will confirm that the description of your products and services, and the statement descriptor used, is clear and accurate. This minimizes customer confusion and prevents mistaken chargebacks.

We will also confirm that you provide clear information to your customers about issues that can increase the risk of dispute, such as how to contact you, your fulfillment policies (such as refund, cancellation, or delivery policies), and details on any free trials offered.

Lastly, we confirm your website meets card network standards. We recommend reviewing our Website Checklist to ensure that your website conforms to the network requirements.