Is it legal for a private company to impose a financial penalty on you without even explaining the reason?
Does their TOS allow it? I haven't seen it but I'd expect an acre of fine print in there.
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Stripe can completely ruin your 6-figure business in one minute
11–20 of 63 posts
Re: Stripe can completely ruin your 6-figure business in one minute
#12That's not the first time Stripe is pointed fingers at, and most probably rightly so, but, for someone like me, totally unaware of what Flurly is, damn their service description seems shady, at best.
Re: Stripe can completely ruin your 6-figure business in one minute
#13Is it legal for a private company to impose a financial penalty on you without even explaining the reason?
Yes, you can enter contracts that include penalties. Stripe has them with the card networks, you have them with stripe.
The fines haven't been decided upon from what I understand, and you could fight them once they've been announced, Stripe is simply freezing their assets to cover the potential fine.
Re: Stripe can completely ruin your 6-figure business in one minute
#14If getting shut down, blacklisted and fined $425000 is "a bit of bad news", I wonder what Stripe considers actually bad news.
The first email had a couple of typos in it too, made me a little suspicious as I’d assume Stripe would be using templates for such messages.
Re: Stripe can completely ruin your 6-figure business in one minute
#15Am I reading that correctly, that you're required to submit to a corporate guilty-until-proven innocent court, for vital payment network access?
The problem with running an innocent-until-proven-guilty payments network is that you will lose a mountain of money in fines, chargebacks, and fraud.
As it turns out, nobody is interested in paying the fees of a network that pays a lot of fines, chargebacks, and fraud.
Re: Stripe can completely ruin your 6-figure business in one minute
#16So essentially Flurly is a payment processor for small businesses running atop on Stripe (that is the same) that runs atop of Visa and Master Card.
Go figure there will be problems.
Re: Stripe can completely ruin your 6-figure business in one minute
#17Given these are fines from the card networks, the business, if it's in the right, can go to court quite readily.
Illegal processing is no joke. This isn't as much "Stripe ruining a business" as it is "a business appears to have been processing illegal activity, which puts it into liability".
To be clear, in some jurisdictions and depending on the activity, illegal processing also carries a jail sentence! The most extreme of which is, of course, terrorist financing.
Re: Stripe can completely ruin your 6-figure business in one minute
#18There appear to be no less than 4 guilty parties here: CC network, Stripe, Flurly and newsawp.com.
According to the blog post, they would have been fine if all Flurly accounts would have been migrated to Stripe Connect direct charges.
Re: Stripe can completely ruin your 6-figure business in one minute
#19> Your account has been found in violation by a card network
Those last 4 words there are key.
> Despite our efforts to provide evidence to the counter
In other words, they were trying to help. Your problem is the card network in question.
Re: Stripe can completely ruin your 6-figure business in one minute
#20Should have been using monero. Hell, even bitcoin.
Seriously? With the ongoing crypto meltdown?