You agree to defend, indemnify, and hold harmless Stripe, its affiliates, and their respective employees, officers, directors, agents, and financial service providers from and against any claims, suits, demands, losses, liabilities, damages, fines, penalties, and expenses (including attorneys' fees) arising out of or relating to: (a) your use of the Services; (b) your products or services; (c) any dispute between you and your customers; (d) your violation of this Agreement, applicable laws, or the rights of any third party.
This broad indemnification clause means that a merchant could be held financially responsible for Stripe's legal defense costs and settlement amounts in lawsuits brought by customers, regulators, or third parties in connection with the merchant's use of Stripe — a potentially unlimited financial exposure.
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.