I had a significant (to me) amount of EFT fraud that happened because of Stripe. Using Stripe Connect, I had a health-related marketplace application, and purported sellers would set up their bank account for EFT transfers -- and the bank accounts were CashApp accounts (technically the Cash App banking partner but still controlled by CashApp.) They then used stolen credit cards to "buy" services from themselves. Then the funds from the stolen cards would be transferred via EFT to the CashApp accounts. Then the charges would be challenged and reversed and the CashApp accounts were long-since emptied. Leaving me to personally pay for the fraud reversals (and charge back fees for each of the credit card transactions.) To the tune of over $27k.

Contacting Stripe about this (this was about 2 years ago) -- apparently this was all my fault -- despite CashApp "bank" accounts being bastions of fraud, and the credit card transactions all being from a single IP address. And I was given the run around since it wasn't my bank account used for the EFTs, so I didn't have a "fraud" claim and the stolen credit cards weren't mine either. But I was left holding the bag. Stripe took the negative balance out of my bank account.

Basically fraud is my problem even though their systems enabled it (for real, a simple check of an account routing number shows that it's the holding bank for CashApp, yet they allowed the EFTs without even the most cursory hold) -- but Stripe for years had no problem getting my more than 3% in credit card fees. Also the transaction size was far different than the typical transaction size that occurred for multiple years. But yeah, I get it, it's all my fault.

I contacted law enforcement with extremely detailed logs, even the geographic area where the transactions happened (down to the block of a neighborhood in Florida.) I contacted Stripe, I contacted CashApp. And nobody gave a shit because it wasn't their money.

If Stripe were on the hook for the fraud, I'd bet their systems would get really good in a hurry. As it is they not only didn't have any liability, they also made money from me on the chargeback fees. And CashApp doesn't care because it isn't their money either.

I'm working on a new startup project now and Stripe is not on my list of payment processors. I will never use anything Square-related ever again either. I realize that the others probably aren't any better, but that there was no empathy (and for weeks after, attempted fraud with Cash App banks accounts continued to be attempted, but I had manually blocked transfers to that specific routing number in my application code -- so I saw the fraud attempts continue long after.)