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How to Get Approved for Stripe as a New Business

H
HowToApprove Editorial Team
•2025-04-08•8 min read

How to Get Approved for Stripe as a New Business

Bottom line: Stripe approves most businesses instantly during signup, but accounts are reviewed on an ongoing basis. The most common reason for sudden account suspension is operating in a restricted category, processing transactions inconsistent with your declared business model, or high dispute rates. Declare your business accurately from day one.

How Stripe's Approval Process Works

Unlike traditional merchant accounts, Stripe does not require a pre-approval process for most businesses. You create an account, verify your identity, and can start accepting payments. However, Stripe continuously monitors accounts for risk signals:

  • Chargeback rate above 1%
  • High-value single transactions with no history
  • Transaction patterns inconsistent with declared business type
  • Operating in a restricted or prohibited category

    • Step 1: Set Up Your Account Correctly

    During onboarding, Stripe asks for:

    Business Information

  • Legal business name (must match your tax registration exactly)
  • Business type: Individual/sole proprietor, LLC, corporation, nonprofit
  • EIN or SSN (for US businesses)
  • Business address (must be a real address, not a P.O. box for some account types)
  • Business website (must be live and describe your products/services)

    • Business Description

    The most important field for avoiding future issues. Describe exactly what you sell:

  • "SaaS subscription for project management software — $29/month and $99/month plans"
  • "Online tutoring sessions booked at $60/hour"
  • "E-commerce physical goods: handmade candles and home fragrance products"

    • Vague descriptions ("consulting services," "miscellaneous") trigger enhanced review.

    Product/Service Category (MCC Code)

    Stripe assigns an MCC (Merchant Category Code) based on your business description. This affects:

  • Which card types you can accept
  • Reserve requirements
  • Chargeback thresholds

    • Restricted and Prohibited Categories

    Restricted (Require Pre-Approval)

    These categories require contacting Stripe before processing:

  • Firearms and ammunition
  • Pharmaceuticals and supplements
  • Tobacco and e-cigarettes
  • Crypto and NFT platforms
  • Adult content
  • Credit repair services
  • Travel and ticket resellers

    • If your business is in a restricted category, contact Stripe support before signing up and processing transactions.

    Prohibited (Never Approved)

  • Unlicensed financial services
  • Pyramid schemes and MLM recruitment-focused businesses
  • Counterfeit goods
  • Illicit substances

    • What Triggers Account Review or Suspension

    High Dispute Rate

    Stripe's threshold is approximately 1% of transactions resulting in disputes. Above this, your account enters monitoring. Above 1.5%, account termination becomes likely.

    Prevention:

  • Issue refunds proactively for unhappy customers (disputes cost $15 each; refunds cost nothing)
  • Use Stripe's Radar fraud detection rules
  • Require address verification (AVS) for card transactions
  • Send receipts and shipping confirmations

    • Unusual Transaction Patterns

    A new account processing a $10,000 single transaction after days of $20 transactions triggers automatic review.

    Prevention:

  • If you expect large transactions, describe your business model clearly and contact Stripe support in advance
  • Gradually increase transaction volume

    • Missing or Inconsistent Business Information

    A website that does not match your declared business, or a personal website for a declared LLC, triggers enhanced review.

    Verification Documents Stripe May Request

  • Government-issued ID (passport or driver's license)
  • Business registration documents (Articles of Incorporation for LLCs/corporations)
  • Proof of address (utility bill or bank statement)
  • Voided check or bank statement for payout account
  • Proof of products/services (supplier invoices, screenshots of your product)

    • Frequently Asked Questions

    How long does Stripe verification take?

    Most accounts verify in minutes via automated identity checks. Complex business types or restricted categories can take 1–5 business days.

    Can Stripe hold my funds?

    Yes. Stripe can place a reserve on your account if it detects elevated risk. Reserves are typically 25–100% of rolling 7-day volume for 90–180 days. Declare your business accurately to minimize reserve risk.

    What is the Stripe dispute fee?

    $15 per dispute in the US, non-refundable even if you win the dispute. For disputes you win on eligible products, Stripe's Chargeback Protection program refunds the fee.

    Can a suspended Stripe account be reinstated?

    Sometimes. Contact Stripe support with documentation proving policy compliance. If the suspension was due to business type, you may need to operate through a different processor for that category.

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