Stripe: US Payment Processor Definition
What is Stripe? Learn how to open a Stripe account with a US LLC as a non-US founder, including document requirements and payout schedules.
Definition
Stripe is a financial infrastructure platform that lets businesses accept online payments, manage subscriptions, issue cards, and access capital. Founded in 2010, Stripe powers payments for millions of businesses globally, from startups to enterprises like Amazon, Google, and Shopify.
Why Non-US Founders Use Stripe
For non-US founders building digital businesses (SaaS, ecommerce, digital products), Stripe provides:
- US Payment Acceptance: Accept credit cards and ACH in USD
- Developer-Friendly API: Clean documentation, multiple SDKs
- Global Payouts: Send payouts to 135+ countries
- Dashboard Analytics: Real-time revenue tracking
Stripe vs PayPal
| Feature | Stripe | PayPal |
|---|---|---|
| Best For | SaaS, subscriptions, B2B | Ecommerce, consumer payments |
| Fees | 2.9% + $0.30 | 3.49% + $0.30 (domestic) |
| Developer API | Excellent | Moderate |
| Disputes | Full control | PayPal often sides with buyer |
| Payout Speed | 2 days standard | 1 day instant |
Requirements to Open a Stripe Account
Minimum Requirements (2026)
- US Business Entity: LLC registered in Delaware, Wyoming, or similar
- EIN: From IRS Form SS-4
- US Bank Account: Mercury, Relay, or similar
- Functional Website: Live site with privacy policy and terms of service
- Identity Verification: Foreign passport + proof of address
What Stripe Checks During Verification
- Business legitimacy: Website, product description, pricing
- Identity: Passport, driver’s license, national ID
- Address: Utility bill or bank statement (proof of address)
- Business type: LLC, corporation, or sole proprietorship
- Tax information: EIN confirmation letter, W-9 form
How Stripe Payouts Work
Stripe transfers funds to your connected US bank account on a 2-day rolling basis by default.
For new accounts:
- First payout may take 7-14 days (Stripe review period)
- Reserve: Stripe may hold 5-10% for 30 days (dispute protection)
Payout Schedule Options
| Schedule | When You Get Paid |
|---|---|
| Standard (2 days) | Every 2 business days |
| Weekly | Every Monday for prior week |
| Monthly | 1st of each month |
Stripe Products for Non-US Founders
Stripe Payments (Core)
- Credit cards (Visa, Mastercard, Amex)
- ACH direct debit
- Wallets (Apple Pay, Google Pay)
Stripe Billing
- Recurring subscriptions
- Usage-based billing
- Invoicing
Stripe Connect (Marketplaces)
- Multi-vendor payments
- Split payments
- Platform payouts
Stripe Atlas (LLC Formation)
- Stripe offers LLC formation through Atlas
- Fast: 24-48 hours
- Cost: ~$500 (includes registered agent for year 1)
- Note: You can use any formation service; Stripe Atlas is convenient but not cheapest
Common Issues for Non-US Founders
1. Payment Holds
Stripe may place holds on new accounts or high-risk industries (gambling, adult, CBD). Resolution: Provide more documentation, wait 60-90 days for automatic release.
2. OFAC Restrictions
Stripe cannot do business with individuals from OFAC-sanctioned countries (Iran, North Korea, Syria, Crimea, etc.). VPN usage does not trigger OFAC blocks.
3. Bank Account Denomination
Stripe payouts only in USD unless you add multi-currency. EU founders may prefer to use Stripe’s EU entity (requires EU bank account).
Related Terms
- PayPal: A consumer-oriented payment processor often used alongside Stripe for broader customer reach.
- FINCEN: The US Treasury bureau responsible for BOI reporting, a mandatory requirement for Stripe-using LLCs.
- ITIN: An individual tax ID that non-US founders may need for certain financial verifications.
This is a dictionary entry. For full Stripe guide, see US LLC for Stripe