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 help businesses address disputes involving funds held by payment processors. Start with the self-help tools or start the written intake for attorney assistance.
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