Significant Valuation Decline and Fluctuation (high) Stripe's valuation experienced a substantial drop from $95 billion on March 14, 2021, to $50 billion on March 15, 2023. While it subsequently recovered to $70 billion by April 8, 2024, and $91.5 billion as of February 27, 2025, this significant volatility, particularly the nearly 50% decline, indicates considerable financial market uncertainty or internal challenges during that period.. Consumer Privacy Class Action Lawsuit (Settled) (high) Stripe faced a potential consumer class action lawsuit (Silver et al v. Stripe, Inc., 4:20-cv-08196-YGR, N.D. Cal.) alleging 'invasion of privacy claims' and 'secretly tracking, collecting, and storing the personal data and web' of users. A California federal judge ruled on July 29, 2021, that the case could proceed. The case was later closed on December 10, 2021, via a joint stipulation of dismissal, indicating a likely settlement.. Questionable Data Disclosure Requirements and Practices (high) Stripe retracted a request for 'comprehensive financial data' (including current account balance, transactions, and all historical transactions) from Dr. Robert Malone following legal intervention by the Dhillon Law Group. The request was deemed 'not in line with the regular scope' of information typically required by financial institutions and 'appears to have been selectively deployed by Stripe in response to a U.S. Government request,' raising concerns about privacy and operational overreach.. Widespread Merchant Complaints about Account Closures and Fund Withholding (high) Businesses frequently face significant challenges with Stripe, including 'account closures, fund withholding, and technical issues.' This is a recurring theme across multiple sources, indicating systemic issues affecting a broad base of merchants and impacting their ability to operate and access funds.. 'Debanking' Controversy and Merchant Account Misunderstanding (high) Stripe is involved in a 'debanking controversy' where 'many business owners' using Stripe 'do not have a merchant account' and Stripe 'essentially owns their' funds. This highlights a fundamental structural issue in how Stripe operates for many merchants, leading to significant financial control issues and widespread dissatisfaction.. Violation of EU Data Protection Law (Schrems II) for EU-US Data Transfers (high) The European Data Protection Supervisor (EDPS) issued a decision on January 11, 2022, confirming that the European Parliament violated EU data protection law (GDPR for EU institutions) by using Google Analytics and payment provider Stripe. This resulted in illegal transfers of data to the US without ensuring an adequate level of protection, violating the CJEU's 'Schrems II' ruling.. Legal Proceedings Initiated by Nasdaq Against Stripe UK (high) Nasdaq, the stock market exchange and financial information provider, initiated 'legal proceedings against Stripe Payments UK Ltd.' on July 1, 2022. This indicates a significant legal dispute between Stripe and a major financial institution.. Allegations of Antitrust Violations, Account Closures, and Fund Withholding (Reddit) (medium) A user on Reddit alleged that Stripe closed their account over six months ago and retained $22,500 of their funds, suggesting potential 'antitrust law violations' and 'preferential treatment.' This specific complaint aligns with broader concerns about Stripe's business practices.. Frequent Payment Processing Litigation and Disputes (medium) The existence of law firms, such as Rome LLP, specializing in 'Stripe payment processing litigation' indicates a recurring pattern of disputes and legal challenges related to Stripe's payment processing services, suggesting ongoing issues with transactional integrity or merchant disputes.. Compensation Issues Due to IPO Slowdown (medium) The historic slowdown in US initial public offerings (IPOs) has sparked 'compensation issues at startups like Stripe Inc.' This indicates potential internal financial strain or employee morale issues related to liquidity expectations.. Public Apology for Adult Content Policy Issues (medium) Stripe issued a public apology after reports emerged on social media that it would not process payments for adult content, a policy it 'has not wanted to be associated with... for several years.' This indicates a policy misstep or communication issue leading to reputational damage.. Unfair Competition Claims from Rivals (medium) Stripe's co-founder had to defend the company against 'complaints from rivals that it' engages in 'unfair competition claims.' This suggests aggressive business tactics or market dominance issues that could impact reputation and potentially lead to legal challenges.. Numerous Customer Complaints on Better Business Bureau (BBB) (medium) The Better Business Bureau (BBB) website lists 'complaints of Stripe, Inc.', indicating ongoing customer dissatisfaction and unresolved issues that impact the company's reputation.. Investigative Report Questioning 'Is Stripe a Scam?' (medium) An investigative report titled 'Is Stripe a Scam?' examines 'user complaints, regulatory compliance, security measures.' The very existence of such a report indicates significant reputational concerns and public questioning of Stripe's legitimacy and practices.. Recent Significant Layoffs (medium) Stripe initiated a '3.5% workforce reduction' in early 2025, impacting '300 employees across product, engineering, and operations.' This indicates potential business challenges, cost-cutting measures, or strategic shifts, impacting employee morale and public perception.. Accusations of Fraud and Malicious/Incompetent Behavior in Class Action Discussions (medium) A Reddit user is seeking information on class action lawsuits against Stripe, stating they were 'accused of fraud by them' and that Stripe has 'proven to be malicious, capricious and totally incompetent.' These are specific and severe accusations that align with broader reputation issues regarding account management and fund handling.