Stripe holding funds megathread 2026 - share what actually worked

Starting this thread because I've seen SO many people dealing with Stripe fund holds lately and the advice is scattered across reddit, twitter, old forum posts etc. Let's consolidate what actually works in 2026.

My situation: $31k held for "elevated risk review" after a spike in holiday sales. Been using Stripe for 18 months with zero chargebacks. They asked for docs, I sent everything, then silence for 3 weeks.

What finally worked for me:

1. Sent a formal demand letter to legal@stripe.com citing Section 14 of their ToS
2. Had my largest customer email them directly confirming orders were legit
3. Filed a complaint with the California AG's office (Stripe is CA-based)

Got my funds released 8 days after the demand letter. Not sure which action did it but the combo worked.

What worked for you? Let's help each other out here.

Had $52k held in November. B2B SaaS so all my transactions are large annual contracts. Stripe flagged it as unusual activity even tho this is literally how my business works lol

What worked for me:

• Uploaded signed contracts for every single transaction in the hold period
• Got 3 customers to email stripe support confirming they authorized the charges
• Had my accountant send a letter on company letterhead explaining our business model
• Mentioned I was considering arbitration in my support ticket

Released after 11 days. I think the customer emails were the key - proves you're not running a fraud operation.

Pro tip: set up daily payouts so money doesn't accumulate in Stripe. If they freeze you, at least you only lose a day or two of revenue not weeks worth.

ughhh this is my 3rd time dealing with this in 2 years. Stripe keeps doing this to me even tho I always resolve it. starting to think their algorithm just hates my business type (digital courses)

this time was $18k. what worked:

• demand letter (used the template from the older thread here)
• submitted refund policy, ToS, and proof that refund rate is under 1%
• screenshot of positive reviews to prove customers are happy

took 16 days which felt like forever. honestly considering switching to Paddle or Lemon Squeezy even tho fees are higher. the stress isnt worth it

Payment dispute attorney here - I handle these cases regularly. Some legal context that might help:

Your rights under Stripe's ToS:

• They can hold funds for "risk review" but must act in good faith
• Standard holds are 90 days, extended holds up to 120+ days require specific justification
• Section 14 requires disputes go through AAA arbitration (not lawsuits)
• Arbitration filing fee is ~$200 for claims under $75k - Stripe pays the rest

What triggers faster release in my experience:

1. Demand letter to legal@stripe.com - signals you know your rights
2. Specific ToS citations - shows you've read the agreement
3. Arbitration threat - costs them more to defend than to release legit funds
4. CA AG complaint - creates regulatory paper trail
5. Documentation overkill - contracts, invoices, delivery proof, customer confirmations

If your funds exceed $25k and you're getting nowhere after 30 days, consider a free consult with a payment dispute attorney. Many work on contingency for larger amounts.

Also useful: stripe reserve calculator to understand exactly when rolling reserves release.

Differnt experience here - I'm in dropshipping (I know I know) and Stripe held $67k. Took almost the full 90 days to get it back and honestly thought I wasnt going to.

What I think hurt me:

• Long shipping times (30-45 days, customers file disputes)
• Higher chargeback rate (~2.5%)
• Products from overseas suppliers

What eventually got it released:

• Switched to faster shipping for new orders
• Submitted tracking numbers for EVERY order in the disputed period
• Got chargebacks under 1% for 60 days straight
• Lawyer sent demand letter at day 75

If your business model has inherent risk factors (long shipping, digital goods, high ticket items), just expect this to happen eventually. Have a backup processor ready.

Great info everyone! Compiling the common themes I'm seeing:

What seems to work:

• Demand letter to legal@stripe.com (mention arbitration)
• Customer confirmations (have them email Stripe directly)
• Overwhelming documentation (contracts, invoices, delivery proof)
• CA AG complaint (creates urgency)
• Low chargeback rate proof
• Accountant/lawyer letters on letterhead

Prevention:

• Daily payouts to minimize exposure
• Warn Stripe before unusually large transactions
• Keep chargeback rate under 1%
• Have backup processor (Braintree, Square, Helcim)

Anyone else have tactics to add?

One more thing for the prevention side: if you're expecting a big spike in volume (holiday season, product launch, funding round payment), proactively email Stripe support BEFORE it happens. Something like:

"We're expecting approximately $X in transactions between [dates] due to [reason]. Attached are sample contracts and our business documentation. Please flag our account to avoid automated holds."

I've had clients do this successfully. Not foolproof but it creates a paper trail showing you weren't trying to hide anything.

Also worth noting - if you're doing consistent volume over $50k/month, look into Stripe's enterprise tier. Better support, dedicated account manager, and they're less likely to auto-freeze enterprise accounts.

Just found this thread and its exactly what I needed. Currently day 12 of a $14k hold. Going to try the demand letter approach today.

Quick question - does anyone have a template for the demand letter? Or should I just write my own citing the ToS sections mentioned above?

Adding my experience to the pile. I run a small DevOps consulting firm - mostly monthly retainers from enterprise clients. Stripe held $41K in January after one of my clients paid their quarterly invoice all at once instead of monthly. That single large transaction apparently triggered the hold.

What makes this extra frustrating is I had Radar enabled, all my transactions are B2B with signed SOWs, and my chargeback rate is literally 0%. The algorithm just saw a spike and panicked.

Used the demand letter approach from this thread. Also had my client (a Fortune 500 company) email Stripe directly confirming the payment. Funds released in 6 days. Fastest resolution I've heard of, probably because having a Fortune 500 company vouch for you carries weight.

@NewBizOwner_2026 - write your own letter citing Section 14 and the specific dollar amount. Don't use a generic template. Include your business registration, recent bank statements, and any contracts for the held transactions. The more specific and professional your letter, the faster they move.

Fractional CFO here - I work with about a dozen startups and e-commerce companies, and payment processor holds are one of the most common cash flow emergencies I deal with. A few practical treasury management tips that can save your business:

1. Never rely on a single processor. Set up at least two (Stripe + Braintree, or Stripe + Square). Have the backup fully configured and tested so you can switch within hours, not days.

2. Sweep funds daily. Configure daily automatic payouts to your bank account. This limits your exposure to one day's revenue instead of a week or more. Yes, the cash flow timing is slightly different, but it's worth the protection.

3. Maintain a cash reserve. My rule of thumb for payment-processor-dependent businesses: keep at least 30 days of operating expenses in a separate bank account that processors can't touch. This is your "Stripe held my money" fund.

4. Pre-notify before spikes. If you're running a launch, seasonal promotion, or expecting large B2B payments, email Stripe support 2-3 weeks ahead with documentation. This creates a paper trail and can prevent algorithmic holds.

5. Consider a merchant account for large transactions. For B2B payments over $10K, a traditional merchant account through your bank may be more reliable than aggregator platforms like Stripe. Yes, the setup is more cumbersome, but you get a direct banking relationship.

The businesses I've seen weather these holds best are the ones that planned for them as a known risk. Think of it like any other business continuity planning.