Why Stripe Is Stopping Your Payments (And How to Fix It)

Podcast Transcript

Welcome to the Built For Small Business podcast.

If you've just set up your account on Built For Small Business and tried to start receiving invoice payments, you may have hit a step asking you to verify your identity through Stripe. It might have felt unexpected. You just want to get paid, after all. Today I'm going to explain exactly why that step exists, what Stripe is actually asking for, what happens if you skip it, and how to get through it quickly so you can start getting paid without delay.

So why does BFSB ask you to verify your identity? The short answer is we don't. Stripe does.

Built For Small Business uses Stripe Connect to power invoice payments on the platform. This means that when your clients pay an invoice, the money goes directly into your Stripe account, not into ours. We never hold, touch, or have access to your funds at any point. Because Stripe is the one processing and holding those funds on your behalf, they are legally required to verify who you are before they can activate your account for payouts. This isn't a policy we've invented or something unique to BFSB. It applies to every business that uses Stripe to accept payments, anywhere in the world.

So why is this a legal requirement? Stripe operates under strict financial regulations in the UK, including rules set by the Financial Conduct Authority. These regulations, part of broader anti-money laundering and Know Your Customer frameworks, require any platform that processes or holds funds on behalf of businesses to verify the identity of those businesses before releasing payments.

In plain terms, the law requires Stripe to confirm you are who you say you are before it can send money to your bank account.

This is the same reason your bank asked for your ID when you opened your account. It's the same reason PayPal, Revolut, and Wise all require verification before you can withdraw funds. Stripe is no different. If anything, the fact that BFSB uses Stripe for this process, rather than building its own payment system, means your funds are protected by one of the most trusted and regulated payment platforms in the world.

So what information does Stripe ask for? The verification process is handled entirely by Stripe through their secure, hosted onboarding flow. BFSB never sees or stores any of the information you provide.

Stripe typically asks for the following, depending on your business type.

For sole traders and freelancers, they'll need your full legal name, date of birth, home address, the last 4 digits of your National Insurance number, and a government-issued photo ID. That's your passport, driving licence, or national ID card.

For registered limited companies, they'll need your company registration number from Companies House, your registered business address, details of any directors or significant shareholders, that's persons with more than 25% ownership, and a government-issued photo ID for each director.

The photo ID step usually involves taking a photo or uploading a scan of your document. Stripe's system processes this automatically. In most cases, it takes only a few minutes.

Now what happens if you don't complete verification? This is the part worth being clear about. If you do not complete Stripe identity verification, you will not be able to receive payment on any invoice.

You can still create and send invoices. Your clients can still view them. But Stripe will not process or release any payments to your bank account until your account is fully verified. Stripe may also impose payout holds if verification is started but not completed within a certain window. To avoid any disruption to your cash flow, it's worth completing verification as soon as you set up your account, before you send your first invoice.

So how long does it take? For most sole traders and small businesses, the verification process takes 5 to 10 minutes if you have your documents ready.

Here's what to have on hand before you start. Your passport, UK driving licence, or national identity card. Your National Insurance number if you're a sole trader. Your Companies House registration number for limited companies. And access to your phone or a scanner to upload your ID.

Once submitted, Stripe typically verifies accounts within a few minutes. In some cases, particularly for limited companies with multiple directors, it may take up to 24 hours.

Is your information safe? Yes. A few things worth knowing.

First, Stripe handles everything. Your ID documents and personal details go directly to Stripe's secure systems. BFSB never receives, stores, or has access to this information.

Second, Stripe is FCA-authorised. Stripe Payments Europe Limited is authorised by the FCA as an Electronic Money Institution. They are subject to the same regulatory oversight as banks when it comes to handling your data and funds.

Third, your data is encrypted. All information submitted through Stripe's verification flow is encrypted in transit and at rest, in line with industry-standard security practices.

Let me walk you through how to complete verification on BFSB step by step.

First, log in to your BFSB account. Go to Settings, then Invoice Payment Settings. You can also follow the prompt when you try to activate invoice payments. Click Connect with Stripe. You'll be taken to Stripe's hosted onboarding flow, which runs entirely on Stripe's platform. Enter your business details and personal information as prompted. Upload your photo ID when asked. Submit and wait for confirmation. Most accounts are verified within minutes. Once confirmed, you'll be redirected back to BFSB, and your payment account will be active.

If you run into any issues during the Stripe verification process, Stripe has a dedicated support team that can assist. You can also reach us at [email protected], and we'll help where we can.

A quick note on trust. We built BFSB specifically so that small businesses, whether you're a freelancer, a sole trader, or running a small limited company, have access to a proper business management platform without paying for it.

Part of building something you can trust is being transparent about how it works. Stripe Connect means your money is always handled by Stripe, one of the most regulated payment companies in the world. We think that's better for you than building our own payment system and asking you to trust a platform you've just discovered. The identity verification step is the gateway to that. It's a small one-time process that protects you, your clients, and the integrity of every payment made through the platform.

So to summarise. Stripe identity verification is mandatory before you can receive invoice payments on BFSB. It is a legal requirement under FCA regulations, not something BFSB has added. BFSB never sees your information. It goes directly to Stripe's secure systems. The process takes 5 to 10 minutes with your documents ready. Skipping it means payments cannot be released to your bank account. Once complete, it's done. You won't need to repeat it.

Thanks for listening. You can find more guides and tools at builtforsmallbusiness.com