Stripe is a powerful payment processing platform that allows businesses to manage transactions seamlessly. When working with Stripe, it's important to understand the different statuses of connected accounts and their implications for your business. Below, we outline the distinctions between complete, enabled, and restricted accounts and what actions may be necessary to maintain smooth payment processing.
Complete Connected Accounts
A complete connected account is one that has provided all required information and is in good standing. This means the account holder has submitted all necessary details—such as identity verification, banking information, and tax details—allowing them to receive and process payments without restriction.
Maintaining a complete connected account ensures uninterrupted transactions and helps prevent delays or compliance issues down the line. Please encourage your workersto complete their Stripe accounts as soon as possible to avoid payment disruptions.
Enabled Connected Accounts
An enabled connected account is in good standing and capable of receiving payments. However, it may still be subject to additional verification if a higher payment threshold is reached. This threshold varies on a case-by-case basis and depends on factors such as transaction volume, account history, and regulatory requirements.
If an enabled account reaches this threshold, Stripe may request additional information from the account holder. This information could include:
Additional identity verification (e.g., government-issued ID, Social Security Number, or Taxpayer Identification Number)
Business details (if applicable)
Proof of address
Banking information updates
It is important for workers to be aware of these requirements so they can promptly provide the requested details if their account reaches the threshold.
Restricted Accounts
A restricted account is one that has incomplete or missing required information. This restriction may prevent the account holder from receiving payments or completing transactions until the necessary information is provided.
Having restricted accounts within your network should not directly impact your company's Stripe account. However, if any of the restricted accounts belong to individuals your company intends to authorize for work, it is advisable to review their status. In such cases, you can coordinate with Stripe to determine what information is missing and invite the user to provide said information.
Ensuring Compliance and Smooth Payments
To avoid payment disruptions and ensure compliance:
Encourage all connected accounts to provide complete and accurate information.
Monitor enabled accounts that may require additional verification due to higher transaction thresholds.
Work with Stripe to resolve issues related to restricted accounts associated with authorized workers.
By understanding and managing Stripe account statuses effectively, your business can facilitate seamless transactions and maintain a compliant payment processing system.