📋 Overview

A payment platform is holding your funds - money you earned from legitimate transactions is inaccessible. This is devastating for cash flow and can threaten your business. While platforms have some rights to hold funds for risk management, holds must be reasonable and compliant with their terms and the law.

⚠ Cash Flow Crisis

Unexpected fund holds can cripple a business. Document everything and act quickly to minimize damage.

🕒 Know the Timeline

Most holds have defined release schedules (30, 90, 180 days). Get the exact timeline in writing.

💰 You Have Rights

Payment processors are regulated. Unreasonable holds may violate their license requirements and ToS.

Common Fund Hold Situations

  • PayPal - 21-day rolling holds, 180-day account reserves
  • Stripe - Risk-based holds, chargeback reserves
  • Square - Transaction holds, suspicious activity
  • Amazon Payments - Seller reserves, A-to-Z claims
  • Venmo Business - Verification holds, risk assessment
$450
Fund Recovery Package

Demand letter, regulatory complaint drafting, and escalation strategy.

Schedule Review

🔍 Common Hold Reasons

Understanding why funds are held helps you challenge or resolve the issue.

Hold Types and Resolution Paths

Reason Typical Duration Resolution Path
New account/seller 21-30 days per transaction Establish history, verify identity
High-risk category Rolling reserve (10-30%) Provide documentation, negotiate terms
Chargeback/dispute Until dispute resolved Win dispute, provide evidence
Suspicious activity Investigation period Verify legitimacy, provide records
Terms violation (alleged) 90-180 days or permanent Appeal, formal demand, arbitration

⚠ Get Everything in Writing

Demand written explanation of: (1) specific reason for hold, (2) exact amount held, (3) release timeline, and (4) what you can do to expedite release. Verbal promises are worthless.

🛡 Your Rights

Money Transmitter Regulations

Payment processors are regulated as money transmitters under California Financial Code and must comply with DFPI requirements for handling customer funds.

Leverage: File complaint with California DFPI if funds held unreasonably.

Contractual Terms

The platform must follow its own Terms of Service. Review their ToS for hold policies, timelines, and dispute procedures. Violations give you leverage.

Leverage: Cite specific ToS provisions they're violating.

CFPB Oversight

The Consumer Financial Protection Bureau oversees payment processors. Filing a CFPB complaint often triggers internal review and faster resolution.

Leverage: CFPB complaints are tracked and platforms must respond.

State Attorney General

Unreasonable fund holds may violate California's unfair business practices laws. AG complaints create public record and regulatory pressure.

Leverage: Threat of AG complaint can prompt settlement.

⚖ Resolution Options

Formal Written Demand

Send detailed demand letter citing their ToS, requesting specific release timeline, and threatening regulatory action.

  • Creates paper trail
  • Often prompts response
  • Required before escalation

Regulatory Complaints

File with CFPB, California DFPI, and state AG. Regulators track complaints and platforms must respond.

  • Free to file
  • Often effective
  • Creates public record

Executive Escalation

Contact executive team directly via LinkedIn, email, or letter. Bypasses low-level support.

  • Gets attention
  • May prompt review
  • Use after formal demand

Arbitration/Litigation

For significant amounts, pursue formal arbitration or court action under their ToS or breach of contract.

  • Binding resolution
  • For large amounts
  • Costs money upfront

📝 Sample Letters

Fund Release Demand Letter
Subject: FORMAL DEMAND - Immediate Release of Held Funds - Account [ID] Dear [Platform] Customer Service: I am writing to formally demand the immediate release of $[AMOUNT] currently held in my account. ACCOUNT DETAILS: - Account ID: [ID] - Amount Held: $[AMOUNT] - Hold Initiated: [DATE] - Stated Reason: [IF PROVIDED] This hold is improper because: 1. [Specific reason - e.g., transactions are legitimate, no chargebacks, etc.] 2. [Specific reason - e.g., hold exceeds ToS timeframes] Under your Terms of Service Section [X], holds for [stated reason] are limited to [X] days. This hold has exceeded that period. I DEMAND: 1. Written explanation of specific reason for hold within 5 business days 2. Immediate release of funds or binding release schedule 3. Confirmation of hold end date If funds are not released within 10 business days, I will: - File complaint with California DFPI - File complaint with CFPB - Pursue formal arbitration under your Terms of Service Respond to: [EMAIL]
CFPB Complaint
CFPB Complaint - consumerfinance.gov/complaint Product: Money transfer, virtual currency, or money service Issue: Wrong amount charged or received Company: [Platform Name] Description: [Platform] has been holding $[AMOUNT] of my funds since [DATE]. These funds represent legitimate earnings from [describe transactions]. There are no pending disputes, chargebacks, or violations. I have contacted customer support on [DATES] and received no resolution. On [DATE], I sent a formal written demand to their executive team. This unreasonable hold of customer funds violates: - Their own Terms of Service - California money transmitter regulations - Fair business practices I request CFPB assistance in recovering my funds and investigating this company's practices of indefinitely holding customer funds without justification. Documents attached: [List - demand letter, account statements, support correspondence]

🚀 Next Steps

Day 1: Document

Screenshot account balance, hold notice, and all transaction history.

Day 2-3: Demand Letter

Send formal written demand with specific requests and deadlines.

Week 2: Regulatory

If no response, file CFPB and California DFPI complaints.

Week 4+: Escalate

Consider attorney demand letter, arbitration, or small claims court.

Get Your Money Back

Unreasonable fund holds may violate regulations and platform terms. Get professional help recovering your funds.

Schedule Consultation - $450

Resources

  • CFPB: consumerfinance.gov/complaint
  • California DFPI: dfpi.ca.gov - Money transmitter oversight
  • California AG: oag.ca.gov/consumers
  • BBB: bbb.org