Restrictions for Marketplaces not Using Stripe Connect

Question

Is my business at risk of violating Stripe's terms of service if I am a marketplace but do not use Stripe Connect?

Answer

If you are a marketplace using Stripe but not processing payments through Stripe Connect, you may be in violation of Stripe’s Terms of Service for “aggregation.”

To determine whether or not you are aggregating, review the following criteria:

The business name shown on the customer’s bank statement must match the customer’s expectations

It should be very clear to customers that they are paying your business and not a seller in your marketplace. If a customer does not expect to see your business name on their statement, the expected seller should be the one processing these payments instead. This can be done using Stripe Connect.

Goods and services sold must not violate Stripe’s Terms of Service.

If you are accepting payments for goods or services that others are providing, you must ensure that you are not accepting payments for anything that violates Stripe’s Terms of Service. You must also be able to confirm that the good or service purchased was truly provided to the customer. Lastly, you must verify the identity of any person or business you are paying out using Stripe.

You must be responsible for handling support requests, disputes, or refunds.

Since customers are technically buying from you, you are responsible for handling all support requests, disputes, and refunds.

Additional Information

  • If your business model does not fit with these guidelines, Stripe Connect might be a better fit for your business. Contact Stripe Support if you have questions about aggregation or migrating your business to Connect.