You are responsible for all chargebacks, reversals, refunds, and associated fees regardless of the reason for the chargeback or reversal. Stripe may deduct chargeback amounts and related fees from your Stripe balance, any reserve, or any other funds Stripe holds on your behalf. If your chargeback rate exceeds the thresholds set by the Card Networks, Stripe may suspend your account or impose additional fees.
Chargeback liability is absolute under this agreement, meaning merchants bear full financial responsibility for disputed transactions even in cases of friendly fraud, and high dispute rates create a secondary risk of account suspension.
Merchants using Stripe are subject to unilateral fund reserves and payout holds that can be imposed at Stripe's discretion, potentially cutting off access to revenue without advance notice. Stripe can terminate the agreement and continue holding funds for up to 120 days post-termination to cover potential chargebacks or disputes, creating significant cash flow risk for small businesses. You can review Stripe's Prohibited and Restricted Businesses list at stripe.com/restricted-businesses before signing up to assess whether your business type is subject to elevated scrutiny or termination risk.