"Know Your Customer” (KYC) obligations require Stripe to verify that account holders are operating from the business addresses they provide. Connect platforms that do not leverage Stripe-hosted or embedded onboarding must make sure a valid city, state, and zip code are collected in order to verify their connected accounts.
If you collect address information up front from your connected accounts, Stripe will validate the state field for the US, Canada, and Australia. Invalid states will result in an account_country_invalid_state error. We recommend that you validate state values in your onboarding flows to prevent errors when creating or updating connected accounts.