How Stripe’s New Terms Affect Course Creators
I’ve seen some panic concern around Stripe’s recent update on Restricted Businesses, especially from digital and content creators. So I wanted to reach out quick to reassure you in case you're worried this will affect your business.
I'll do my best to break it down.
What’s Happening?
Stripe has updated its terms to include new restrictions for certain types of businesses, particularly content creation platforms that distribute third-party content.
This means that businesses that fall under the restricted category must go through an approval process through Stripe before payments can be distributed.
This might sound alarming, but here’s the key part: individual content creators distributing their own content directly do not need pre-approval.
What this means for you:
Individual Creators: If you’re creating and selling your own content (like on your own website), you’re good to go. You don’t need any special approval from Stripe. Just keep doing what you’re doing!
Approved Platforms: If you’re using a platform that’s already approved by Stripe, you’re also in the clear. The platform will handle any necessary compliance checks, and if anything is needed from you, your platform will let you know.
General Compliance: Just make sure you’re following Stripe’s basic rules – no illegal content, no adult content, etc. This has always been the case, so nothing new here.
Why the update?
Stripe wants to make sure that larger content creation platforms have policies to detect and remove illegal content. This is more about maintaining quality and security on their end, not about restricting legitimate, creative work from the creators.
Real-world examples of who this affects:
Here are some real-world examples of platforms that fall under the categories Stripe is referring to:
Platforms that receive content-related tips and other payments in exchange for their content:
Patreon: Creators can receive monthly tips or payments from their supporters in exchange for exclusive content, early access, or special perks. It doesn't mean Patreon creators can't use Stripe. It means Patreon needs to verify that the creator is a legit business whose content (which is often exclusive and hidden behind a paywall) doesn't go against Stripe's terms. (You can see how Patreon is handling this here).
Platforms that sell exclusive content or digital goods:
OnlyFans: Creators can sell exclusive content (like photos, videos, and live streams) to subscribers who pay for access.
Gumroad: Creators can sell digital products such as e-books, music, art, and other digital goods directly to customers.
Basically, these platforms host content from multiple creators and facilitate payments between the creators and their audience, so Stripe needs to make sure that there's a way to verify that these 3rd party creators are legit.
Bottom line:
If you’re directly selling your own content or using an approved platform, you don’t need to worry. Stripe’s update won’t disrupt your business. And if you are on one of the platforms that requires verification, they'll let you know how to verify, which probably entails uploading an ID or other documents, and you'll be good to go.
If you still have questions, Stripe has an FAQ page which answers some of the questions around what types of content are being scrutinized more closely.
So don't worry - keep creating, sharing, and selling your amazing content and digital products as usual!
