Stripe Account Holds & Reserves FAQ: Everything You Need to Know (2026)

A Stripe rolling reserve is a risk management mechanism where Stripe withholds a percentage of your processed transactions for a specified period, typically 90 to 180 days. For example, if Stripe imposes a 10% rolling reserve with a 90-day hold, they will retain 10% of each transaction you process and release that portion 90 days after the original transaction date.

Rolling reserves are commonly applied to businesses that Stripe considers higher risk, including:

• New accounts without processing history
• Businesses with elevated chargeback rates
• Industries with historically high dispute rates
• Accounts with sudden volume increases

Unlike a fixed reserve where a lump sum is held indefinitely, rolling reserves continuously cycle as older funds are released while new funds are retained. The reserve percentage and hold duration can vary significantly based on your business profile and risk assessment.

Stripe typically holds funds for varying periods depending on the type of hold and your risk profile:

• Standard rolling reserves: 90 to 180 days from each transaction date
• New account holds: 7 to 14 days for initial transactions while Stripe verifies your business
• Dispute-related holds: Until the chargeback is resolved, which may take 60 to 120 days
• Account termination reserves: 90 to 180 days after account closure to cover potential chargebacks

In some cases, Stripe may hold funds for up to 2 years if they believe there is significant risk of future disputes. The specific hold duration should be outlined in your reserve notice email, and you can often find details in your Stripe Dashboard under the Balance section.

Stripe may freeze accounts for several reasons related to risk and compliance:

• High chargeback rates: Exceeding 1% of transactions often triggers freezes
• Volume spikes: Sudden increases that deviate from normal patterns
• Prohibited products: Selling items on Stripe's Restricted Businesses list
• Verification failures: Identity verification issues or inconsistent business information
• Suspected fraud: Patterns that trigger automated risk detection
• High-risk industry: Operating in supplements, CBD, adult content, or cryptocurrency without proper disclosure

Stripe's automated risk systems continuously monitor accounts, and any anomalies can result in holds being applied without prior warning. When your account is frozen, you should receive an email explaining the reason, though these explanations are often vague.

Review your recent activity for any changes that might have triggered the freeze, and gather documentation to support your case for reinstatement.

To appeal a Stripe account termination, act quickly and methodically:

Step 1: Respond to the termination email within 24 to 48 hours requesting a formal review and asking for specific reasons for the termination.

Step 2: Gather comprehensive documentation including business licenses, incorporation documents, product descriptions, fulfillment records, customer communications, and evidence of your dispute resolution processes.

Step 3: Write a detailed appeal letter addressing each concern Stripe raised, explaining any misunderstandings and outlining steps you have taken or will take to address compliance issues.

Step 4: Submit your appeal through Stripe's support portal or by replying to the termination email with all supporting documents attached.

Step 5: Follow up every 3 to 5 business days if you do not receive a response.

If your appeal is denied, consider escalating by filing a complaint with the Better Business Bureau, submitting a CFPB complaint, or consulting with an attorney who specializes in payment processor disputes.

Stripe reserve percentages typically range from 5% to 100% of transaction volume, depending on your risk assessment:

• Low-risk established businesses: No reserve or minimal 5% reserve
• Moderate-risk businesses: 10% to 15% reserve
• Higher-risk accounts: 20% to 30% or more
• New accounts or compliance concerns: Temporarily 100% of funds held

The reserve percentage is determined by factors including your industry type, processing history, chargeback rate, average transaction size, business age, and geographic risk factors. Reserve terms are typically communicated via email and can be found in your Stripe Dashboard.

If you believe your reserve percentage is excessive, you can request a review after 90 days of clean processing history. Provide documentation showing low dispute rates, strong fulfillment metrics, and positive customer feedback to support a reduction request.

To access funds held in your Stripe reserve, you have several options depending on your situation:

• Rolling reserves: Funds are automatically released according to the schedule in your reserve terms, typically 90 to 180 days after each transaction
• Monitor your Dashboard: Check the Balance section to track upcoming releases
• Request expedited release: Contact Stripe support with documentation showing low chargeback rates, fulfilled orders, and positive customer reviews
• Account termination: Request a specific release timeline in writing and follow up regularly
• Disputed holds: Resolve any outstanding chargebacks to unlock associated funds

If Stripe is unresponsive or unreasonably withholding funds, escalate by filing a formal complaint with the CFPB, which often prompts faster resolution. As a last resort, you may need to send a formal demand letter or pursue legal action in small claims court for amounts under your state's limit.

Both Stripe and PayPal implement holds and reserves, but they differ in key ways:

Stripe:

• More transparent about reserve terms upfront
• Clearer documentation in the Dashboard
• Account terminations can be sudden and difficult to appeal
• API-first approach makes integration easier but support harder

PayPal:

• Historically criticized for lengthy holds (often 21 days for new sellers)
• May offer faster resolution through Resolution Center
• Buyer protection policies may result in more chargebacks
• Offers phone support but has more complex fee structures

Stripe's rolling reserves are generally more predictable once established, while PayPal's holds can feel more arbitrary. Neither processor is clearly better for all situations. Consider your specific business type, expected volume, risk profile, and need for customer support when choosing. Many businesses maintain accounts with both to have backup processing capability.

To file a Consumer Financial Protection Bureau complaint against Stripe, follow these steps:

Step 1: Gather all documentation including account statements, email communications with Stripe, reserve notices, and evidence of the funds being held.

Step 2: Visit consumerfinance.gov/complaint and select "Money transfer, virtual currency, or money service" as the product category.

Step 3: Select the appropriate issue type, such as "Unauthorized transactions and disputes" or "Problem with a company's investigation into an existing issue."

Step 4: Provide detailed information about your complaint including dates, amounts, and your attempts to resolve the issue directly with Stripe.

Step 5: Upload supporting documents and submit your complaint.

The CFPB will forward your complaint to Stripe, which is required to respond within 15 days. Companies typically take CFPB complaints seriously as they affect regulatory standing. While the CFPB cannot force Stripe to release funds, their involvement often accelerates resolution.

If Stripe has terminated your account or you operate in a high-risk industry, several alternative payment processors specialize in higher-risk merchants:

• PaymentCloud: Works with many restricted industries, personalized underwriting
• Durango Merchant Services: Extensive high-risk experience, competitive rates for established businesses
• Square: May accept some businesses Stripe rejects, though has similar restrictions
• Payline Data: Transparent pricing, works with moderate-risk businesses
• CCBill and Segpay: Specialists for adult content
• PayKickstart or Bankful: CBD business specialists
• BitPay or Coinbase Commerce: Cryptocurrency businesses

When evaluating alternatives, consider setup fees, monthly minimums, reserve requirements, rolling reserve terms, chargeback fees, and contract lengths. Be completely transparent about your business model during application to avoid future terminations.

While Stripe's terms of service grant broad authority to hold funds, they cannot hold your money indefinitely without legitimate business justification. Stripe's Connected Account Agreement allows them to establish reserves and hold funds to cover potential chargebacks, refunds, and other liabilities. However, this authority has limits:

• Escheatment laws: Most states require companies to turn over abandoned property, including held funds, to the state after a specified dormancy period (typically 3 to 5 years)
• Breach of contract: Holding funds without reasonable justification may violate your agreement
• Consumer protection: State unfair business practices laws may apply
• Reasonable time requirement: Courts have found that payment processors must release funds within a reasonable time after the chargeback risk period has passed

If Stripe is holding your funds beyond the stated reserve period without explanation, you have legal remedies including formal demand letters, small claims court for smaller amounts, and civil litigation for larger sums.

Reducing your chargeback rate is essential for avoiding Stripe holds and account terminations. Implement these best practices:

• Clear billing descriptors: Use recognizable names that customers will identify on their statements
• Excellent customer service: Provide easy-to-find contact information so customers reach you before disputing
• Order communications: Send confirmations and shipping notifications with tracking numbers
• Clear refund policies: Display prominently during checkout
• Fraud prevention: Use Stripe Radar or similar tools to block suspicious transactions
• Verification: Require CVV and AVS matching for all transactions
• Subscription management: Send reminder emails before recurring charges and make cancellation easy
• Quick response: Address retrieval requests and inquiries promptly

Monitor your chargeback rate weekly and investigate any disputes immediately. If your rate exceeds 0.75%, take immediate action as Stripe typically intervenes at 1%. Consider implementing 3D Secure authentication for higher-risk transactions.

To effectively dispute a Stripe hold or reserve, compile comprehensive documentation proving your business legitimacy and low risk profile:

Business Documents:

• Business registration and licenses
• Articles of incorporation
• EIN documentation

Operational Evidence:

• Detailed product or service descriptions with photos and pricing
• Shipping confirmations, delivery receipts, and tracking data
• Customer communications showing satisfaction and resolved issues

Financial Records:

• Chargeback history with evidence of disputes won
• Bank statements showing business stability
• Positive reviews from third-party platforms

For your dispute letter, clearly explain your business model, address any specific concerns Stripe raised, and provide metrics showing low dispute rates and high customer satisfaction. Organize documents chronologically and create a summary index for easy review.

Stripe does not directly report to consumer credit bureaus like Equifax, Experian, or TransUnion for standard merchant account activity. Your Stripe processing history, including holds or reserves, does not appear on your personal credit report.

However, there are indirect credit implications to consider:

• Stripe Capital: If you use Stripe for a business loan, repayment issues could potentially affect business credit
• MATCH List: Stripe may report certain fraud-related account closures to the Member Alert to Control High-Risk Merchants database, which other payment processors can access
• Collections: Negative balances that go to collections may be reported to credit bureaus
• Court judgments: If Stripe obtains a judgment against you for unpaid fees, this could appear on your credit report

To protect yourself, resolve any Stripe disputes before they escalate to collections, and always maintain positive balances in your account.

As a Stripe merchant, you have several legal rights regarding fund holds:

• Right to clear communication: Stripe must explain why funds are held and when they will be released per your agreement terms
• Reasonable necessity: Funds should only be held as reasonably necessary to protect against legitimate risks, not as punishment
• Right to accounting: You can demand a detailed accounting of all funds held and their expected release dates
• State consumer protection: You may have claims under unfair business practices laws if Stripe withholds funds without justification
• Right to release: After reasonable risk periods pass, you have the right to demand release of remaining funds

For disputes, start with direct communication to Stripe support requesting written explanation. If unresolved, file a CFPB complaint and consider sending a formal demand letter citing breach of contract. For amounts under your state's small claims limit, small claims court provides an accessible remedy.