My partner needed a payment provider for her small but growing personal training and fitness business (getfitsmiling.ie). Stripe seemed like a good fit and was easy to integrate with her booking system. All good so far.
After a week of processing payments, out of the blue, Stripe contacted my wife to tell her that they were closing her account and withholding collected funds for 90-days. Why? Because of the "likelihood for future chargebacks exceeds the rate we're legally able to support". Chargebacks? What chargebacks? My wife knows personally every person that orders from her booking site....she provides a personal fitness service. Why would she be high risk for chargebacks? In over 10 years of business, she had never had a customer ask for their money back or dispute a transaction. Being a provider of an intangible service, she has never been the victim of fraud so it baffles me how Stripe can conclude this.
Irrespective of their flawed logic, what is really unprofessional is the manner in which they handle the supposed 'risky customer'. There is no personal email or warning message, just a pre-canned automated email containing generic and dubious reasoning. If they had really done their research, they could specifically state why they had reservations. The fact is, we're a victim of their AI system and automated customer support. If you respond to their initial email, they send a further message that tries to offload their accountability to KYC legislation - tenuous at best!
I would never recommend Stripe to anyone based on this experience.