[chexton]

So Stripe is in fact opening a merchant account fir each user that signs up?

I am curious that a social security number is all that is required...why is it such a pain to get a merchant account with a bank or other acquirer? I am curious how Stripe can make it so simple.

[pc]

There are two big reasons as to why it's so painful elsewhere. One is underwriting: people want to know a lot about your business so they can figure out if you're likely to be fraudulent (or expensively incompetent). They typically do this by taking a shotgun approach to information requirements.

The second reason is that it's "standard", and everybody copies the "standard" without much consideration. The companies providing merchant accounts are usually not technology companies, and historically haven't had thought much about product.

We like to think that we can do much better than traditional companies on both counts.

[chexton]

Thanks Patrick.

I am curious as I am in fact an Australian citizen and know that a lot of people have a hard time here when trying to open a merchant account. From what I've read and heard it's traditionally a similar in the US and it is obviously one of the killer features of Stripe.

Was it hard for you to work with a bank (Wells Fargo) on this? From what I've heard banks are the main driver behind the 'shotgun' approach to information collection, at least here in Australia. I could well be wrong on this, hence I ask the question.

You are already doing a much better job than traditional companies on both accounts, it's great to watch and I'm sure you guys will continue to do great work.

Note: I just realised my spelling error in my previous post...iPhone autocorrect got the better of me!a