Score Breakdown by Category
How Stripe's terms rate across our six evaluation categories, weighted by real-world impact.
Why this score: Stripe scores poorly due to three critical provisions: (1) no maximum hold duration specified in Section 3.2, unlike Square's 180-day cap; (2) 100% reserve authority under Section 3.3, the maximum allowed by any major processor; and (3) no formal appeal process for terminations under Section 7.2.
Industry comparison: PayPal: 28/100 (worse - 180-day holds + rolling reserves) | Square: 58/100 (better - 180-day max, written appeals) | Category avg: 45/100
Why this score: Section 14 mandates binding arbitration through JAMS with a class action waiver. The 30-day opt-out window (Section 14.10) is industry-standard but easily missed. Small claims court exception exists (Section 14.9) but only for claims under $10,000.
Industry comparison: PayPal: 35/100 (AAA arbitration, shorter opt-out) | Square: 45/100 (similar JAMS clause) | Adyen: 65/100 (court litigation allowed in EU) | Category avg: 42/100
Why this score: Section 12 caps Stripe's liability at fees paid in the prior 12 months or $500, whichever is greater. This is standard but problematic for high-volume merchants. The indemnification clause (Section 11) is mutual, which is better than one-sided indemnity found in PayPal's terms.
Industry comparison: PayPal: 40/100 (one-sided indemnity, $500 cap) | Square: 60/100 (mutual indemnity, fees-paid cap) | Adyen: 70/100 (higher caps for enterprise) | Category avg: 52/100
Why this score: Stripe excels here with excellent documentation and a clear Restricted Businesses list. Section 1.4 requires 30 days' notice for material ToS changes. However, fee changes can occur with only 14 days' notice (Section 5.3), and the "risk" criteria for holds remain opaque.
Industry comparison: PayPal: 45/100 (vague prohibited activities) | Square: 55/100 (good docs, less notice) | Adyen: 50/100 (complex pricing) | Category avg: 48/100
Why this score: The Privacy Policy allows broad data sharing with "Stripe affiliates and service providers." The August 2025 update added AI training rights for transaction data (Section 6.2). GDPR/CCPA compliance is solid, but the new AI clause is concerning for merchants handling sensitive customer data.
Industry comparison: PayPal: 45/100 (extensive cross-platform sharing) | Square: 55/100 (no AI training clause) | Adyen: 65/100 (stricter EU privacy) | Category avg: 50/100
Why this score: Section 7.1 allows you to close your account anytime, but Section 3.2 permits Stripe to hold funds post-termination until all "potential liabilities" are resolved—with no defined timeline. The data export tools are good, but you cannot export customer payment methods or recurring billing relationships.
Industry comparison: PayPal: 30/100 (180-day post-closure holds) | Square: 50/100 (90-day max post-closure) | Adyen: 55/100 (defined 120-day period) | Category avg: 42/100
Analysis