Compare terms of service fairness across major payment processors. See which platforms have the most consumer-friendly policies for fund holds, reserves, and account terminations.
Side-by-side comparison of key terms across payment processors.
| Feature | Stripe | PayPal | Square | Shopify Payments |
|---|---|---|---|---|
| Overall Score | C-45 | C52 | C+58 | B-65 |
| Max Fund Hold Duration | Indefinite | Indefinite | 180 days | 120 days |
| Reserve Requirement | Up to 100% | Up to 100% | Up to 30% | Up to 25% |
| Termination Notice | None required | None required | 30 days | 14 days |
| Arbitration Required | Yes, mandatory | Yes, mandatory | Yes, mandatory | Yes, mandatory |
| Class Action Waiver | Yes | Yes | Yes | Yes |
| Chargeback Fee | $15 | $20 | $0 (first), then $10 | $15 |
| Appeal Process | None specified | Informal only | 30-day window | Via Shopify support |
| Best For | Developers, SaaS | Consumer sales | Small businesses | Shopify stores |
| Full Review → | Full Review → | Full Review → | Full Review → |
Click through for detailed analysis, gotcha clauses, and attorney commentary.
Developer-focused processor
Consumer payments giant
Small business focus
Shopify store integration
Common patterns we found when reviewing payment processor terms.
All four processors require mandatory arbitration and include class action waivers. You cannot sue in court or join a class action.
Stripe and PayPal can hold funds indefinitely, while Square caps holds at 180 days. This is the biggest differentiator.
Stripe and PayPal can require 100% reserves. Square limits this to 30%. Major cash flow implications for new businesses.
All processors can deem you "high risk" at any time with vague criteria. This triggers reserves, holds, or termination.
Only Square explicitly provides a 30-day appeal window for terminations. Others have no formal process.
Rapid growth without notification can trigger reviews at all processors. Success can paradoxically hurt you.
I've helped hundreds of businesses recover funds from payment processors. Start with our free tools or schedule a consultation.
More tools and guides for payment processor issues.
Paste any processor's ToS for instant analysis of risky clauses.
Estimate how much Stripe might hold based on your volume.
The definitive guide to getting your frozen Stripe funds released.
How to draft an effective demand letter for PayPal holds.
Common questions about Stripe disputes and resolutions.
Demand letter strategies for all major payment processors.
Need help understanding your rights or resolving a platform dispute?