Under Stripe's Services Terms (Section 3.3), a Reserve is an amount Stripe holds back in a Reserve Account over which it has sole control. The clause states Stripe may establish a Reserve and will notify the user of the Reserve terms, that funds are held in a Reserve Account with Stripe having sole control, and that the user has no legal or equitable right or interest in any earnings generated by the Reserve. In practice a reserve is the processor holding part of your money against the risk of future chargebacks, refunds, and other liabilities. Automated methodology assessment, opinion based on the published terms as of 2026-06-27; verify the current sources.

Stripe Services Agreement Review 2026 | Fairness Score 47/100 (Grade C)

Score Breakdown by Category

How Stripe's published terms rate across the methodology's evaluation categories, weighted by real-world impact on a merchant. Automated assessment, as of June 27, 2026.

💰 Fund & Account Control (25%) 35/100

Why this score: the agreement gives Stripe broad contractual discretion over funds and the account. The Services Terms let Stripe establish a Reserve held in a Reserve Account over which it has sole control (Section 3.3), and the General Terms let Stripe terminate or close the account at any time and suspend immediately on listed risk triggers (Section 10.1). Merchants often experience this as a freeze, payout hold, reserve, or shutdown.

This is a description of what the published terms permit, not a finding that Stripe acted unlawfully in any case.

⚖ Dispute Resolution (20%) 42/100

Why this score: the General Terms route disputes to binding arbitration by a single arbitrator and require a pre-arbitration Notice of Dispute with a 30-day informal-resolution period (Section 11.4). The US Regional Terms provide California governing law, AAA Commercial Arbitration Rules in San Francisco, a class-action waiver, and a jury waiver (Section 13.2). The individual-only structure can cut both ways for a single merchant with a clean liquidated claim.

🛡 Liability & Indemnification (20%) 52/100

Why this score: like most processor agreements, Stripe's terms disclaim indirect, incidental, and consequential damages and cap liability. The practical nuance for a held balance is that the held balance itself is a direct, liquidated amount Stripe owes under the Settlement clause (Section 4.3), not a consequential loss, so the consequential-damages disclaimer generally does not bar a claim for the balance itself.

👁 Transparency & Notice (15%) 58/100

Why this score: Stripe publishes clear, well-organized terms and a detailed Prohibited and Restricted Businesses list (Last Updated May 13, 2026). The opacity is on the risk side: the specific criteria and model outputs that drive a given hold or reserve are not published, which is common across processors.

🔒 Data & Privacy Rights (10%) 50/100

Why this score: covered in detail on the companion Stripe Privacy Policy review. For the fund-hold context, the relevant point is that information and verification gaps are a common stated trigger for moving an account to restricted and pausing payouts.

🚪 Exit Rights (10%) 45/100

Why this score: the user may close the account at any time via the Dashboard (Section 10.1), but settlement is net of disputes, refunds, reversals, and other amounts owed (Section 4.3), and a reserve can persist while risk is open (Section 3.3). The held balance remains an amount Stripe owes; the question is timing and the risk rationale.

Compare With Other Processors

⚖ Contract powers vs the risk read

Two different things, kept separate on purpose. The left box is what Stripe's published agreement says, quoted verbatim with section references. The right box is the Terms.Law opinion about what that means in practice for a merchant. The quote carries the weight; the opinion is clearly labeled as opinion.

📜 What the agreement says

Contract text - Stripe's published Services Agreement, verbatim

Reserve.
“Stripe may establish a Reserve and will notify User of the Reserve terms,” with funds “held by Stripe in a Reserve Account” and Stripe having “sole control over the Reserve.” The User acknowledges having “no legal or equitable right or interest in any earnings generated by any Reserve.”Stripe Services Agreement, Services Terms, Section 3.3 (Last modified April 24, 2026)
Settlement and recourse.
Once Stripe receives funds for a transaction, “the relevant Customer has no further obligation to make payments to User with respect to that Transaction.” “If Stripe does not settle funds due to User under this Agreement, User will have recourse only against Stripe and not the relevant Customer.” Settlement is net: Stripe transfers funds “net of Fees, Disputes, Refunds, Reversals and other amounts owed to Stripe.”Stripe Services Agreement, Services Terms, Section 4.3 (Last modified April 24, 2026)
Suspension and termination.
“Stripe may terminate this Agreement or close User's Stripe Account at any time” (for convenience), and may terminate immediately for cause on an uncured 10-day material breach. Immediate-suspension triggers Stripe lists include a violation of law, insolvency, breach of the agreement, activity that degrades Stripe's security or stability, an unlawful business, increased fraud rates, failure to respond to information requests, or failure to update to recommended versions.Stripe Services Agreement, General Terms, Section 10.1 (Last modified November 18, 2025)
Dispute resolution; Notice of Dispute.
“All disputes, claims, and controversies ... will be determined by binding arbitration by a single arbitrator.” A pre-arbitration written notice describing the dispute's nature, factual and legal basis, and relief sought is required, with a 30-day attempt at resolution before commencing arbitration. IP-rights claims are carved out: “All disputes, claims, and controversies principally related to a party's IP Rights will be resolved by litigation.”Stripe Services Agreement, General Terms, Section 11.4 (Last modified November 18, 2025)
Governing law and arbitration forum.
“The laws of the state of California are the Governing Law.” The American Arbitration Association “will administer ... under the AAA's Commercial Arbitration Rules” in San Francisco, California. Any dispute “will be conducted only on an individual basis and not in a class ... action,” and each party “waives any right to trial by jury in any action ... arising out of or relating to this Agreement.”Stripe Services Agreement, US Regional Terms, Section 13.2 (Last modified November 18, 2025)

🧾 The Terms.Law risk read

Terms.Law opinion - opinion, not a statement of fact

The agreement gives Stripe broad contractual discretion to hold, reserve, delay, suspend, or terminate in specified risk circumstances. Merchants often experience this as a freeze, payout hold, reserve, or shutdown. The contract is drafted to support a discretionary, risk-based decision.
The single most useful clause for a merchant is actually Section 4.3: once your customer has paid, your money is owed by Stripe, and the held balance is a direct, liquidated sum, not a speculative loss. That framing is what keeps a held-balance claim outside the consequential-damages disclaimer.
The chargeback-exposure window for any set of charges is finite. In my opinion, once that window for the underlying charges has passed and delivery is complete and undisputed, the original risk basis for continuing to hold is weaker under Stripe's own rationale. Pointing to the expired window is often the strongest factual lever.
The individual-only arbitration structure can help a single merchant with a clean liquidated claim: for a modest balance it may not be economic for a processor to defend an individual arbitration, so a credible, well-documented demand can move things without filing.
What tends not to work: emotional appeals and reaching for large unsubstantiated lost-profits numbers, which can invite the consequential-damages disclaimer and weaken the strong core claim (the balance itself).

⚖

This column is opinion under a published methodology, calibrated to the quoted clauses. It is not a prediction about any specific account and not a finding of wrongdoing.

⚠ Clauses I Check First

Automated assessment, as of June 27, 2026. Each card is an opinion drawn from Stripe's published Services Agreement, with the operative language quoted. The quote carries the weight. Verify the current sources before relying on this. None of this is a finding that Stripe acted unlawfully in any specific case.

Reserves held under Stripe's sole control

High Risk

The agreement lets Stripe establish a Reserve, held in a Reserve Account under Stripe's sole control, and states the user has no right or interest in earnings generated by the Reserve. Merchants experience this as money they cannot access.

“Stripe may establish a Reserve and will notify User of the Reserve terms,” with funds “held by Stripe in a Reserve Account” and Stripe having “sole control over the Reserve.” The User acknowledges having “no legal or equitable right or interest in any earnings generated by any Reserve.” Stripe Services Agreement, Services Terms, Section 3.3 (Apr 24, 2026) · stripe.com/legal

Your recourse for unsettled funds is against Stripe

Read Closely

Once your customer has paid, the customer owes you nothing further on that transaction, and if Stripe does not settle the funds your recourse is against Stripe, not the customer. This cuts both ways: it is a constraint, but it also makes the held balance a direct debt Stripe owes you.

Once Stripe receives funds, “the relevant Customer has no further obligation to make payments to User with respect to that Transaction.” “If Stripe does not settle funds due to User under this Agreement, User will have recourse only against Stripe and not the relevant Customer.” Stripe Services Agreement, Services Terms, Section 4.3 (Apr 24, 2026) · stripe.com/legal

Termination for convenience plus immediate-suspension triggers

High Risk

Stripe may terminate or close the account at any time, and may suspend immediately on a list of risk triggers including increased fraud rates, failure to respond to information requests, an unlawful business, or breach. Whether advance warning comes turns on the trigger and the facts.

“Stripe may terminate this Agreement or close User's Stripe Account at any time.” Immediate-suspension triggers include a violation of law, insolvency, breach, activity that degrades Stripe's security or stability, an unlawful business, increased fraud rates, failure to respond to information requests, or failure to update to recommended versions. Stripe Services Agreement, General Terms, Section 10.1 (Nov 18, 2025) · stripe.com/legal

Settlement is net of disputes, refunds, and amounts owed

Medium Risk

Stripe transfers funds net of fees, disputes, refunds, reversals, and other amounts owed to it. A merchant closing an account can find the settled amount reduced by held-back risk items, and a reserve can persist while risk is open.

Settlement is net: Stripe transfers funds “net of Fees, Disputes, Refunds, Reversals and other amounts owed to Stripe.” Stripe Services Agreement, Services Terms, Section 4.3 (Apr 24, 2026) · stripe.com/legal

California-law AAA arbitration, class and jury waiver

High Risk

Disputes go to binding arbitration administered by the AAA under its Commercial Arbitration Rules in San Francisco, on an individual basis only, with a jury waiver. A pre-arbitration Notice of Dispute and a 30-day informal-resolution period come first.

“The laws of the state of California are the Governing Law.” The AAA “will administer ... under the AAA's Commercial Arbitration Rules” in San Francisco; any dispute “will be conducted only on an individual basis and not in a class ... action”; each party “waives any right to trial by jury.” Stripe Services Agreement, US Regional Terms, Section 13.2 + General Terms 11.4 (Nov 18, 2025) · stripe.com/legal

Prohibited and restricted business categories

Medium Risk

Stripe publishes a detailed list. Prohibited categories cannot use Stripe at all; restricted categories may be allowed with conditions or extra diligence. Selling in a restricted or borderline category raises the baseline risk score and is a common stated reason for a hold or termination.

Prohibited categories include (verbatim headings) marijuana; adult content and services; gambling; debt relief companies; lending and credit; nutraceuticals and pseudo-pharmaceuticals; and unfair, deceptive, or abusive acts or practices. Restricted categories include cannabidiol (CBD); cryptocurrency; pharmaceuticals, medical devices, and telemedicine; tobacco; dating; crowdfunding and fundraising; and travel. Stripe Prohibited and Restricted Businesses (Last Updated May 13, 2026) · stripe.com/legal

🔎 Go Deeper

The practical detail behind the score: why processors freeze in the first place, the escalation path that produces results, how the arbitration economics work for a single merchant, and how Stripe's posture compares to PayPal and Square. Each block is collapsed; open what is relevant to you.

🔍 Why processors hold, reserve, or terminate

Processors are not banks in the traditional sense; they are intermediaries that carry the chargeback and fraud risk on money that has already moved. Holds and reserves are their risk-management tools, written broadly into their own terms so the decision sits in the processor's discretion. The recurring triggers, in general experience with this kind of dispute:

Sudden volume change. A spike in sales, a single unusually large transaction, or a fast ramp on a young account reads as risk and can trigger an automated hold or reserve.
Industry or product category. Selling in a restricted or borderline category (supplements, CBD, crypto-adjacent, high-ticket pre-orders, certain digital goods, anything with delayed delivery) raises the baseline risk score.
Chargeback and dispute rate. Elevated chargebacks, refund rates, or customer complaints are the most common stated reason for a reserve or a payout delay.
Delivery timing and pre-selling. Long lead times between charge and fulfillment expand the chargeback-exposure window, so pre-sale and made-to-order models attract holds.
Information and verification gaps. Slow or failed verification, mismatched business details, or unanswered information requests can move an account to restricted and pause payouts.
Model-driven flags. Each processor runs proprietary fraud and risk models whose specific criteria they decline to disclose, so an account can be flagged with no human-legible reason.

ℹ

The decision is almost always framed by the processor as discretionary and risk-based, and the contract is drafted to support that framing. That is the core dynamic: the merchant experiences a freeze as arbitrary; the processor points to a broadly worded clause. This is opinion about the general pattern, not a claim about any specific account.

🥋 The escalation path that produces results

This is the generalized sequence that tends to move a held balance. It maps onto the demand-letter service tiers without promising filing or representation.

Documented internal escalation. Exhaust the processor's own dispute channel in writing, addressed to its risk or legal contacts, creating a paper trail and triggering any contractual informal-resolution period.
Notice of Dispute. Stripe's Section 11.4 requires a written pre-arbitration Notice of Dispute and a 30-day waiting period before a claim can be commenced. Sending it both starts the clock and satisfies a precondition to arbitration.
Attorney demand letter. A letter on firm letterhead, sent by certified mail and email, framed on Stripe's own contract sections and the expired-risk-window point, stating the amount and a firm deadline.
Court-ready arbitration demand attached as leverage. Preparing the arbitration demand and enclosing it (not filing it) makes the threat specific and credible. For many mid-size balances this alone can produce a release.
File the arbitration demand if the processor stonewalls. A separately scoped, separately engaged step. Actually filing, paying the AAA fee, and appearing as counsel of record is not part of the demand-letter tiers.
Optional parallel regulatory pressure. Consumer and state-regulator complaints (for example the CFPB and the relevant state regulator or attorney general) are reservation-of-rights options the client may elect, not commitments.

⚠

Scope note. The demand-letter tiers cover steps 1 through 4 (and a first-response review). Actually filing arbitration, paying the filing fee, and appearing as counsel of record are a separate engagement that is quoted and papered separately. Terms.Law represents merchants in processor fund-hold disputes; nothing here is a promise to sue any processor.

⚖ Why individual arbitration can favor a small merchant

Stripe's terms route disputes to arbitration with a class-action waiver. Counterintuitively, that structure can help a single merchant with a clean liquidated claim:

For a held balance in the low-to-mid range, it is often not economic for a processor to defend an individual arbitration. Administrative and arbitrator fees plus counsel time can rapidly exceed a modest balance, so the rational move can be to release rather than litigate once a credible demand is on the table.
The class waiver that protects a processor against aggregate exposure also strips away the scale defense in a single small case: it must spend real money to fight a small individual claim it cannot consolidate away.
Where the governing terms shift fees to the prevailing party, a meritorious claimant's downside is bounded, which further changes the math.

⚖

This is a general read of how the economics tend to run, not a guarantee. Every matter turns on its own facts, the amount, the documentation, and the terms in force. Whether to actually file is a separate decision and a separate engagement.

📊 Stripe vs PayPal vs Square: how the postures differ

These three are among the most widely used processors. On the fund-hold dimensions, their published terms share the same core posture (broad reserve and suspension discretion, individual arbitration with a class waiver) but differ in the details. The reading below is an automated read of each company's published terms; confirm the current wording before relying on any row.

Dimension	Stripe	PayPal	Square
Reserve authority	Reserve in a Reserve Account under Stripe's sole control (Services Terms 3.3)	Rolling and minimum reserves, set case-by-case (per PayPal help and BRC pages)	May withhold, delay payouts, or designate a Reserve (Payment Terms; re-confirm section)
Recourse for unsettled funds	Against Stripe, not the customer (Services Terms 4.3)	Against PayPal under the User Agreement	Against Square under the Payment Terms
Arbitration administrator	AAA, Commercial Rules, San Francisco (US Regional Terms 13.2)	AAA, with a 30-day mail-in opt-out (per UA; re-confirm)	Per the version in force (re-confirm against the live terms)
Class / jury waiver	Yes, individual-only, jury waiver (13.2 / 11.4)	Yes, class and jury waiver (per UA)	Yes, individual-only (per terms)
Governing law	California (US Regional Terms 13.2)	Per the UA (historically with a San Jose litigation department)	Per the Payment Terms

Scores and details reflect an automated read of each company's published terms at the time of review. The PayPal and Square rows describe well-established structures; some exact section numbers and quotes for those two should be re-confirmed against the live terms before being relied on. See the full Stripe vs PayPal vs Square comparison.

Frequently Asked Questions

Practical, frozen-funds questions, answered against Stripe's published Services Agreement as of June 27, 2026. Each answer is an opinion drawn from the published terms; the quoted clause carries the weight. This is general legal information, not legal advice, and not a finding that Stripe acted unlawfully in any specific case. Verify the current sources before relying on this.

⚖

Neutral framing on purpose. The agreement gives Stripe broad contractual discretion to hold, reserve, delay, suspend, or terminate in specified risk circumstances, and merchants often experience this as a freeze, payout hold, reserve, or shutdown. Describing the contract power is not the same as saying any freeze was wrongful. Automated assessment, as of June 27, 2026; verify the current sources.

Why did Stripe freeze my funds?

The agreement gives Stripe broad contractual discretion to hold, reserve, delay, suspend, or terminate in specified risk circumstances; merchants often experience this as a freeze, payout hold, reserve, or shutdown. The General Terms (Section 10.1) list immediate-suspension triggers including increased fraud rates, failure to respond to information requests, an unlawful business, and breach. The Services Terms (Section 3.3) let Stripe establish a Reserve. The common practical drivers are a sudden volume change, a restricted or borderline product category, an elevated chargeback rate, long delivery lead times, or an unanswered verification request. This describes what the terms permit and the general pattern, not a finding about any specific case. Automated methodology assessment, opinion based on the published terms as of 2026-06-27; verify the current sources.

“Stripe may terminate this Agreement or close User's Stripe Account at any time.”Stripe Services Agreement, General Terms, Section 10.1 (Nov 18, 2025) · stripe.com/legal/ssa

What is a reserve?

Under Stripe's Services Terms (Section 3.3), a Reserve is an amount Stripe holds back in a Reserve Account over which it has sole control, and the user has no legal or equitable right or interest in any earnings generated by the Reserve. In plain terms, a reserve is the processor holding part of your money against the risk of future chargebacks, refunds, and other liabilities. It can be a rolling percentage of incoming volume, a fixed minimum, or both. Automated methodology assessment, opinion based on the published terms as of 2026-06-27; verify the current sources.

“Stripe may establish a Reserve and will notify User of the Reserve terms,” with funds “held by Stripe in a Reserve Account” and Stripe having “sole control over the Reserve.” The User acknowledges having “no legal or equitable right or interest in any earnings generated by any Reserve.”Stripe Services Agreement, Services Terms, Section 3.3 (Apr 24, 2026) · stripe.com/legal/ssa-services-terms

Can Stripe hold money after my customer paid?

Yes, under the published terms. Once Stripe receives funds for a transaction the customer has no further obligation to pay you for that transaction, and if Stripe does not settle the funds your recourse is only against Stripe, not the customer (Services Terms 4.3). The important consequence for a held balance is that the balance itself is a definite amount Stripe owes you, which is different from speculative lost profits and generally sits outside the consequential-damages disclaimer. Automated methodology assessment, opinion based on the published terms as of 2026-06-27; verify the current sources.

Once Stripe receives funds, “the relevant Customer has no further obligation to make payments to User with respect to that Transaction.” “If Stripe does not settle funds due to User under this Agreement, User will have recourse only against Stripe and not the relevant Customer.”Stripe Services Agreement, Services Terms, Section 4.3 (Apr 24, 2026) · stripe.com/legal/ssa-services-terms

Can Stripe terminate my account without warning?

Under the General Terms (Section 10.1), Stripe may terminate or close the account at any time, and may suspend immediately on enumerated triggers such as a violation of law, insolvency, breach, activity that degrades Stripe's security or stability, an unlawful business, increased fraud rates, failure to respond to information requests, or failure to update to recommended versions. The user may terminate at any time by closing the account, and for cause on Stripe's uncured 10-day material breach. So the contract allows closure for convenience and immediate suspension on listed risk triggers; whether advance warning comes turns on the trigger and the facts. Automated methodology assessment, opinion based on the published terms as of 2026-06-27; verify the current sources.

“Stripe may terminate this Agreement or close User's Stripe Account at any time.”Stripe Services Agreement, General Terms, Section 10.1 (Nov 18, 2025) · stripe.com/legal/ssa

How long can Stripe hold funds?

Stripe's published Services Terms do not state a fixed maximum hold or reserve duration; Section 3.3 gives Stripe sole control over the Reserve and provides that the user has no right or interest in earnings generated by the Reserve. As a practical matter the chargeback-exposure window for a given set of charges is finite, so once that window has passed and delivery is complete and undisputed, the original risk basis for continuing to hold is weaker under Stripe's own rationale. In my opinion, the expired-risk-window point is often the strongest factual lever to argue a held balance should be released. This is general information about how the terms read, not a prediction about any account. Automated methodology assessment, opinion based on the published terms as of 2026-06-27; verify the current sources.

“Stripe may establish a Reserve and will notify User of the Reserve terms,” with funds “held by Stripe in a Reserve Account” and Stripe having “sole control over the Reserve.”Stripe Services Agreement, Services Terms, Section 3.3 (Apr 24, 2026) · stripe.com/legal/ssa-services-terms

What if Stripe says I am a prohibited or restricted business?

Stripe publishes a Prohibited and Restricted Businesses list (Last Updated May 13, 2026). Prohibited categories cannot use Stripe at all and include, among others, marijuana, adult content, gambling, debt relief, lending and credit, nutraceuticals and pseudo-pharmaceuticals, and unfair, deceptive, or abusive acts or practices. Restricted categories may be allowed with conditions or extra diligence and include cannabidiol (CBD), cryptocurrency, pharmaceuticals and telemedicine, tobacco, dating, crowdfunding, and travel. If Stripe asserts a classification, the dispute usually turns on whether your actual products fit the category and on what the published list and your agreement say. Automated methodology assessment, opinion based on the published terms as of 2026-06-27; verify the current sources.

Prohibited (headings): marijuana; adult content and services; gambling; debt relief companies; lending and credit; nutraceuticals and pseudo-pharmaceuticals; unfair, deceptive, or abusive acts or practices. Restricted (headings): cannabidiol (CBD); cryptocurrency; pharmaceuticals, medical devices, and telemedicine; tobacco; dating; crowdfunding and fundraising; travel.Stripe Prohibited and Restricted Businesses (Last Updated May 13, 2026) · stripe.com/legal/restricted-businesses

What documents help get funds released?

Documentation that undercuts the stated risk rationale: a clean transaction history showing the held balance as a definite amount, proof that goods or services were delivered, evidence that customers have not disputed, the chronology showing the chargeback-exposure window has passed, customer communications, and the processor's own hold or closure notice. Because Section 4.3 makes the held balance a direct amount Stripe owes rather than a consequential loss, keeping the claim to that liquidated balance, interest, and recoverable costs is generally stronger than reaching for large lost-profits numbers. This is general information, not legal advice about your account. Automated methodology assessment, opinion based on the published terms as of 2026-06-27; verify the current sources.

Settlement is net: Stripe transfers funds “net of Fees, Disputes, Refunds, Reversals and other amounts owed to Stripe.”Stripe Services Agreement, Services Terms, Section 4.3 (Apr 24, 2026) · stripe.com/legal/ssa-services-terms

What is the notice-of-dispute process?

Stripe's General Terms (Section 11.4) provide that disputes are determined by binding arbitration by a single arbitrator and require a pre-arbitration written notice describing the dispute's nature, factual and legal basis, and relief sought, with a 30-day attempt at resolution before commencing arbitration. The Notice of Dispute satisfies a precondition to arbitration and starts a 30-day clock; sending it in writing to the right contacts also creates a paper trail. IP-rights claims are carved out to litigation. Serving it properly preserves the arbitration path; doing it wrong can be a procedural own-goal. Automated methodology assessment, opinion based on the published terms as of 2026-06-27; verify the current sources.

“All disputes, claims, and controversies ... will be determined by binding arbitration by a single arbitrator.” ... “All disputes, claims, and controversies principally related to a party's IP Rights will be resolved by litigation.”Stripe Services Agreement, General Terms, Section 11.4 (Nov 18, 2025) · stripe.com/legal/ssa

When does AAA arbitration make economic sense?

Stripe's US Regional Terms (Section 13.2) provide California governing law, AAA Commercial Arbitration Rules in San Francisco, an individual-only basis (a class-action waiver), and a jury waiver. That individual-only structure can help a single merchant with a clean liquidated claim: for a modest held balance it may not be economic for a processor to defend an individual arbitration, so a credible, well-documented demand can move things, sometimes without filing. Where the terms shift fees to the prevailing party, the downside is bounded. Whether actually filing makes sense depends on the amount, the documentation, and the fee allocation, and filing and appearing as counsel of record is a separate engagement. Automated methodology assessment, opinion based on the published terms as of 2026-06-27; verify the current sources.

“The laws of the state of California are the Governing Law.” The AAA “will administer ... under the AAA's Commercial Arbitration Rules” in San Francisco; any dispute “will be conducted only on an individual basis and not in a class ... action.”Stripe Services Agreement, US Regional Terms, Section 13.2 (Nov 18, 2025) · stripe.com/legal/ssa

What should an attorney demand letter include?

A credible attorney demand letter for a processor fund-hold is generally framed on the processor's own contract sections (for Stripe: the Reserve clause 3.3, the Settlement clause 4.3, the suspension and termination clause 10.1, and the dispute-resolution clause 11.4), states the held amount as a definite sum, sets out the chronology showing delivery is complete and the risk window has passed, sets a firm deadline, and goes by certified mail and email to the risk or legal contacts rather than front-line support. It keeps the ask to the recoverable core (balance, interest, recoverable costs). Terms.Law represents merchants in processor fund-hold disputes; the demand-letter tiers cover the letter and the first-response review, while actually filing arbitration is a separate engagement. Automated methodology assessment, opinion based on the published terms as of 2026-06-27; verify the current sources.

“If Stripe does not settle funds due to User under this Agreement, User will have recourse only against Stripe and not the relevant Customer.”Stripe Services Agreement, Services Terms, Section 4.3 (Apr 24, 2026) · stripe.com/legal/ssa-services-terms

⚖

Stripe froze your funds? Upload the reserve, payout-delay, or account-closure notice. This is an automated assessment, not legal advice. Terms.Law represents merchants in processor fund-hold disputes; the demand-letter tiers cover the attorney letter and the first-response review, and filing arbitration is a separate engagement. You can start a request here:

Stripe Services Agreement Review

Score Breakdown by Category

Compare With Other Processors

⚠ Stripe froze your funds?

⚖ Contract powers vs the risk read

📜 What the agreement says

🧾 The Terms.Law risk read

⚠ Clauses I Check First

Reserves held under Stripe's sole control

Your recourse for unsettled funds is against Stripe

Termination for convenience plus immediate-suspension triggers

Settlement is net of disputes, refunds, and amounts owed

California-law AAA arbitration, class and jury waiver

Prohibited and restricted business categories

🔎 Go Deeper

Frequently Asked Questions

The Bottom Line

What Stripe's Published Documents Say

Suspension, termination, and dispute resolution

Reserves and settlement

The category list

Stripe froze your funds?

Stripe Services Agreement Review

Score Breakdown by Category

Compare With Other Processors

⚠ Stripe froze your funds?

Related Resources

⚖ Contract powers vs the risk read

📜 What the agreement says

🧾 The Terms.Law risk read

⚠ Clauses I Check First

Reserves held under Stripe's sole control

Your recourse for unsettled funds is against Stripe

Termination for convenience plus immediate-suspension triggers

Settlement is net of disputes, refunds, and amounts owed

California-law AAA arbitration, class and jury waiver

Prohibited and restricted business categories

🔎 Go Deeper

Frequently Asked Questions

The Bottom Line

What Stripe's Published Documents Say

Suspension, termination, and dispute resolution

Reserves and settlement

The category list

Stripe froze your funds?

Related Resources