Can Content Creators Get Kicked Out of Stripe?
This week saw a flurry of content creators in…well… a flurry.
Why?
Because of Stripe’s Prohibited and Restricted Business Policy.
Stripe prohibits certain businesses from being able to process payments through Stripe’s platform.
On Stripe’s mind? Risk. If you’re involved in a business that puts Stripe at risk, Stripe says bye, bye, bye… you can’t use our services.
So what does this have to do with content creators?
I’m going to tell you in this post.
I’m Maria Spear Ollis, aka The Lunar Lawyer, and I’m going to shine some light on why content creators are freaking out about Stripe’s Restricted Businesses policy.
Where to find Stripe’s list of restricted businesses
Throughout this post, I’m going to be referring to Stripe’s list of Prohibited and Restricted Businesses. These are part of the rules Stripe has in place.The rules make it possible for Stripe to kick you off the platform for any violations. (Eek.)
What businesses are prohibited by Stripe?
There are several different types of businesses that Stripes prohibits from using its services.
The usual suspects include goods or services like:
Illegal drugs;
Things that encourage, promote, or celebrate violence;
Adult entertainment-related content and services;
Gambling;
…you get the picture.
(There are also currently a lot of restrictions around Russia.)
Is there a difference between “restricted” and “prohibited” businesses on Stripe?
Yep, there is! Stripe differentiates between “prohibited” businesses (like the ones I listed above), and “restricted” businesses.
Like the “prohibited” list, there are some types of businesses on the restricted list that you’d read about and nod, thinking “yeah, I can see why Stripe considers that to be a ‘risky’ business.”
(Think: cannabis, CBD, pharmaceuticals, financial/investment-type products)
But then there are others, like… “content creation platforms.”
“Huh!? How are content creators restricted?”
Stripe’s list of “restricted” businesses includes, and I quote, “Content Creation Platforms.”
According to Stripe, this means:
Platforms that host or distribute third-party content and enable content creators to:
Receive content-related tips and other payments in exchange for their content
Sell exclusive content or digital goods
Let’s take that apart a second.
So to be on the “restricted” list, you’d have to:
Distribute third-party content. (Content that you didn’t create.)
Enable content creators to receive content-related tips and other payments in exchange for their content. (To me, this sounds like a “content exchange” or somewhere where you’re actually allowing others to sell their content.)
Enable content creators to sell exclusive content or digital goods. (This… is the kicker.)
But, Stripe goes on to clarify:
Individual content creators … directly distributing their own content (for example, on their own website) do not require pre-approval.
If you’re breathing a sigh of relief — good!
Psst, don’t forget, everyone that uses Stripe — content creators included — must comply with the Stripe Services Agreement and are subject to monitoring by Stripe to ensure compliance.
If you’re thinking “I don’t only distribute my own content… so now what?” Then you’re probably referring to Master Resale Rights content or third-party/affiliate content.
Since Master Resale Rights Content and Affiliate Content are pretty specific, I’ll address each of those in these mini sections ➡️. (Click each one to expand.)
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We can (and probably should) discuss Master Resale Rights in an entire article on its own. But it’s a hot trend in coaching and online businesses right now.
How Master Resale Rights content works
With Master Resale Rights (or MRR) content, you purchase a course or a framework with “master resale rights” attached. This means you can resell any part of the course as your own product. It all depends on the terms of the license, of course, but that’s generally how it works.
How Master Resale Rights content could get you kicked out of Stripe
Well, if I buy an MRR course, from someone else who bought that MRR course, and the other people that bought the MRR course also resell the MRR course…
…it kind of starts looking like a pyramid, doesn’t it?
And Stipe’s Policy prohibits (not restricts…prohibits):
• Pyramid schemes; and
• “Get rich quick” schemes, including: investment opportunities or other services that promise high rewards to mislead consumers; schemes that claim to offer high rewards for very little effort or up front work; and sites that promise fast and easy money
A LOT of the branding around MRR content boasts about the wealth you can gain from reselling the content. Again, it depends on the source, but you can see how Master Resale Rights content might violate Stripe’s Restricted and Prohibited Businesses Policy.
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To me, having affiliate links and affiliate content on your website won’t get you on the restricted list. (I’m not Stripe, but, this is my opinion.)
Affiliate content — content that promotes products that will kick back a little money in your pocket — isn’t the same as creating a platform where others can sell their content. And it isn’t (or shouldn’t be) content created by someone else.
If you’re worried about this, just be doubly sure that your affiliate content (like a blog post or blurb about an affiliate product) is YOUR content. In other words, don’t lift content from somewhere else when talking about your affiliate products.
Stripe’s FAQ for the win
Stripe’s FAQ confirms my interpretation of these “content creation” restrictions in its Prohibited and Restricted Business List FAQs.
In the FAQ, the question is asked:
What is a content creation platform?
Answer: A content creation platform is a marketplace that hosts or distributes third-party content from multiple content creators and enables end-users to provide payments to creators.
So, not just a content creator website that distributes or promotes content, but an entire platform or marketplace for the purpose of distributing others’ content in exchange for payment.
Very, very different from a content creator selling her expertise via her website!
“I’m officially panicking…what do I do if think I might be on one of these lists?”
First, don’t panic!
Second, In terms of “restricted businesses” (like the content creator category!) Stripe itself says:
You must not use Stripe’s services for the following activities, unless you have received prior written approval from Stripe. If you think your business falls into one of the restricted categories, please contact us.
Here are the most important things to notice:
They require PRIOR written approval. So, no begging for forgiveness, here… you’ve got to be proactive and ask permission.
There’s a possibility you’ll still be able to use Stripe, even if you fall under the restrictions category. Just ask them!
At the end of the day, it sounds like most content creators have nothing to worry about!
“I want to establish rules for the things I’m creating and selling online and… I need a refund policy (and my own Terms of Use).”
Pshhhh. I got you. 😉 ⬇️
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