Stripe Rolling Reserve: How Long Until They Release Your Money? (2024 Timeline + Solutions)

I'm at my wits end here. Stripe has been holding $15,247 of MY money in a "rolling reserve" for 3 months now. My ecommerce business sells custom furniture - been processing with them for 2 years with zero chargebacks.

Out of nowhere in September they emailed saying they were implementing a 10% rolling reserve due to "elevated risk" - no specifics, no warning, nothing. Now its December and they still wont tell me when the money gets released.

I've emailed support probably 15 times. Every response is the same copy-paste BS about how reserves "protect both parties" and they'll "review periodically." Called their phone number twice - both times the rep just read from the same script.

Questions for anyone whos been thru this:

• How long does stripe rolling reserve typically last? I've seen people saying anywhere from 90 days to forever
• Is there any way to actually get a human to review my account?
• Should I just switch processors at this point? Worried they'll hold even more if I try to leave

This is seriously affecting my cashflow and I have suppliers waiting to be paid. Any advice appreciated.

Been there man. Had a 15% reserve for 6 months on my dropshipping business - they held about $23K at the peak. Finally got it released in October. Here's exactly what worked for me:

Step 1: Document Everything

• Screenshot all your Stripe dashboard metrics - chargeback rate, dispute rate, processing volume
• Export 12 months of transaction history
• Get testimonials or invoices showing you deliver legit products

Step 2: Write a Formal Reserve Review Request

Don't just email support. Write a formal business letter requesting a reserve review. Include your metrics, explain your business model, address whatever "risk" they might be worried about. I attached 3 months of clean processing after the reserve started.

Step 3: Ask for Specific Release Schedule

Stripe uses different reserve types - some are "rolling" (releases after X days per transaction), some are "minimum balance" (they keep a fixed amount). Ask them SPECIFICALLY which type you have and what the release schedule is.

Step 4: Escalate to Account Manager

If you process decent volume ($50K+/month) you might have an account manager. Ask for their contact. If not, ask for your case to be escalated to the "Account Health" team.

Took about 3 weeks after I sent the formal letter, but they reduced my reserve to 5% and released half the held funds within 30 days. The rest came out on the rolling schedule over the next 90 days.

Payment processor attorney here. Let me give you some context on your legal options when Stripe is holding your money:

Understanding Your Rights:

Stripe's Terms of Service do give them broad authority to implement reserves. HOWEVER, they still have obligations under various state money transmission laws and must act in good faith. Holding funds indefinitely without clear justification can cross legal lines.

CFPB Complaints - Surprisingly Effective:

The Consumer Financial Protection Bureau accepts complaints against payment processors. File at consumerfinance.gov. Stripe is required to respond within 15 days. I've seen multiple clients get their reserves released or reduced within 2-3 weeks of filing. The CFPB complaint creates a paper trail that Stripe takes seriously.

State Attorney General:

If you're in a state like California, New York, or Texas, your state AG's consumer protection division can also investigate. California is particularly aggressive about payment processor issues.

State Banking Regulator:

Stripe holds money transmission licenses in most states. You can file complaints with your state's banking/financial regulator. They have audit authority over Stripe's reserve practices.

Timeline Expectations:

• 90-day rolling reserves are most common
• 120-180 days for "elevated risk" accounts
• Indefinite holds usually indicate they want you to leave (but they can't just keep your money forever)

If they're being unresponsive after 90+ days with no chargebacks, that's when regulatory complaints become appropriate. Document everything - every email, every response time, every vague answer.

@SmallBizMike following this thread closley because im in an even worse situation. 8 months now with a 20% reserve. They're holding over $31K of my money.

I tried the formal letter approach that @ReserveKiller_Dan mentioned - got a response saying my account is "under ongoing review" and they "cannot provide a specific timeline." Thats it. No explanation of what triggered this, no path forward.

Few questions for @JLawrence_Esq if your still monitoring:

• If I file a CFPB complaint, will Stripe retaliate by closing my account entirely? I'm worried about losing the ability to process at all
• Is there any point where I can actually sue them? The TOS has an arbitration clause but idk if that covers everything
• If I switch processors, can they hold the reserve even longer? Someone told me they can keep it for 180 days AFTER you stop processing

My business is a subscription box service btw - recurring billing. One chargeback in 2 years for $47. This whole thing makes no sense.

Just gonna throw out an alternative perspective here - sometimes the best move is to just leave and wait out the reserve release while processing elsewhere.

I had about $18K in reserve with Stripe last year. Spent 3 months fighting them, got nowhere. Finally said screw it, switched to a combination of:

• Square for in-person/POS (no reserve so far, 11 months in)
• Helcim for online payments (slightly higher fees but way better support, interchange-plus pricing)
• PayPal Business as backup (yeah I know, but diversification matters)

The Stripe reserve released on a rolling basis over 120 days after I stopped processing. Got the last of it in March. They didn't extend the timeline or anything weird - it just followed whatever schedule they had set up.

Pro tip: Before you switch, download EVERYTHING from Stripe. Customer payment methods, subscription data, invoices, everything. You'll need it to migrate and you dont want to be locked out later.

Life is so much better not being dependent on one processor. Stripe got too big and now they treat small businesses like garbage.

@TrappedWithStripe - responding to your questions:

1. CFPB Retaliation Risk:

Technically, retaliating against a customer for filing a regulatory complaint would be illegal. In practice, Stripe may decide your account is "no longer a good fit" around the same time. They won't say it's because of the complaint. My advice: only file the CFPB complaint if you're prepared for the relationship to end. But honestly, at 8 months with $31K held, the relationship is already broken.

2. Suing Stripe:

The arbitration clause covers most disputes, yes. But arbitration isn't necessarily bad - it's faster and cheaper than court in many cases. You can file with AAA (American Arbitration Association) and Stripe has to pay most of the fees for consumer/small business claims. For $31K, arbitration could make sense. Some claims (like violations of state consumer protection statutes) may allow you to escape arbitration depending on your state.

3. Post-Termination Reserve Holds:

Yes, Stripe's TOS allows them to hold reserves for up to 180 days (sometimes longer) after you stop processing. This is ostensibly for chargebacks that come in late. However, they can't hold it FOREVER. If you have no chargebacks after 180 days, they must release the funds. Get this in writing if you can.

With 8 months and only 1 chargeback for $47, something is off. Either they've flagged your industry/business model as high-risk, or there's an error in their system. Either way, the CFPB route forces them to actually explain what's happening.

SUCCESS STORY here - finally got my $22K reserve released after 5 months. Wanted to share what finally worked because I tried everything in this thread first.

What DIDN'T work:

• Regular support emails (useless, just got canned responses)
• Phone calls (reps have zero authority)
• Formal letter to support (got a slightly longer canned response)

What FINALLY worked - Executive Escalation:

I found email formats for Stripe executives and sent a professional, factual email directly to their Chief Business Officer. Didn't threaten, didn't rant - just laid out the facts:

1. Account in good standing for 3 years
2. Chargeback rate of 0.02% (well below industry average)
3. Reserve imposed without clear explanation
4. 5 months of attempting resolution through normal channels
5. Specific dollar amount held and impact on my business
6. Request for executive review and specific release timeline
7. Mentioned I was preparing regulatory complaints as a next step (not a threat, just factual)

Within 48 hours I had an email from someone on the "Merchant Success" team (never heard of them before). They did an actual review of my account, acknowledged the reserve was "higher than necessary for my risk profile," and released 75% immediately. The rest came out over 60 days.

Executive email format that worked: firstname@stripe.com - most C-suite can be reached this way. Be professional, be factual, be specific. They have people monitoring these emails who can actually make decisions.

Don't give up. These reserves CAN be released early if you push hard enough through the right channels.

@MerchantVictory can you share the exact executive emails you used? I've been trying to find the right contacts but LinkedIn only shows me their profiles, not email addresses.

My situation: $27,400 held for 4 months. I sell handmade jewelry on Etsy and my own Shopify store. Zero chargebacks. They told me my "business model presents elevated risk" - whatever that means for handmade jewelry??

Different angle here - I run a B2B SaaS with annual subscriptions ($5K-$50K contracts). Stripe hit me with a 25% reserve last August claiming "elevated chargeback risk" despite having ZERO chargebacks in 18 months of processing.

Turns out the issue was my average transaction size. When you process high-value transactions, their algorithm automatically flags you because ONE chargeback could be huge. Doesn't matter that your chargeback RATE is 0%.

What worked for me: I provided Stripe with:

• Signed contracts for all my enterprise customers
• Documentation showing delivery of services
• Letters from 3 customers confirming satisfaction
• Bank statements showing my company has significant cash reserves (proving I could handle a chargeback)

They reduced my reserve from 25% to 5% within 3 weeks. Still annoying but manageable. The key was proving I'm not a fly-by-night operation.

Dropshipping is basically blacklisted by Stripe at this point. They held 100% - yes ONE HUNDRED PERCENT - of my deposits for 2 months before terminating my account entirely.

$43,000 held. Filed CFPB complaint in October. Got a response from Stripe saying they'd release funds "within 180 days of last transaction per our terms." Currently at day 97. Counting down.

For any dropshippers reading this: just don't use Stripe. Go with PayPal (they're actually more lenient with dropshipping despite what people say) or find a high-risk processor like Durango Merchant Services. Yes, you'll pay 4-5% instead of 2.9%, but at least you'll actually GET your money.

UPDATE from OP: Following the advice here, I filed a CFPB complaint on January 5th. Just got a response from Stripe today!

They're releasing $10,000 immediately and the remaining ~$5K over the next 60 days. They also reduced my ongoing reserve from 10% to 5%.

The CFPB complaint works, people. It took exactly 13 days from filing to resolution. Their response was way more detailed than anything I got from regular support - they actually explained that my reserve was triggered by "seasonal volume increase" (I had higher sales in Q4, go figure).

Thank you everyone in this thread, especially @JLawrence_Esq for the CFPB recommendation. This forum literally saved my business.

Adding my CFPB success story to the pile:

Timeline:

• Reserve imposed: September 2024
• Amount held: $18,750
• CFPB complaint filed: December 28, 2024
• Stripe response: January 8, 2024
• Funds released: January 12, 2024

Total time from CFPB filing to money in my bank: 15 days.

They didn't close my account or retaliate. Actually got assigned a dedicated "account specialist" who proactively reached out to explain their risk assessment and work with me on reducing my reserve percentage going forward.

The CFPB complaint lit a fire under them in a way that 20 support emails never did.

Has anyone tried the NY State Attorney General route? I'm in New York and wondering if that's more effective than CFPB for NY-based businesses.

Stripe is holding $8,200 of my funds. Small amount compared to some of you but it's still my money. 10% reserve for 5 months now on my web development agency's payment processing.

@TechKev_NYC - NY AG can be effective but typically takes longer than CFPB. My recommendation:

1. File CFPB complaint first (faster response requirement)

2. If no resolution in 30 days, file NY AG complaint as additional pressure

3. For NY specifically, you can also file with the NY Department of Financial Services since Stripe holds a money transmitter license there

The DFS complaint is actually quite powerful because they regulate Stripe's ability to operate in NY. They take reserve complaints seriously.

@SmallBizMike - Congrats on the resolution! This is exactly why I recommend the CFPB route. Glad it worked out.

Moving/logistics company here. Stripe put a 30% reserve on us after we had 2 chargebacks in one month (both fraudulent - customers claimed they never received service when we have signed delivery confirmations).

We won both disputes but Stripe STILL kept the reserve. Their logic: "The disputes indicate elevated risk regardless of outcome." So even when we PROVE the chargebacks are fraudulent, we're still punished.

Currently holding: $52,000 (30% of about $175K processed since the reserve started)

Anyone else in moving/logistics dealt with this? Seems like our industry is just flagged as high-risk automatically.

@BoxTruck_Brian - yes, moving/home services are considered high-risk by basically everyone. It's because of the high average transaction size and the difficulty of proving service delivery.

I run 3 franchise locations (cleaning services) and all three have reserves. What I learned:

• Get signed completion forms for EVERY job
• Take before/after photos with timestamps
• Send email receipts that require customer acknowledgment
• Keep all this documentation organized and ready to submit

After 6 months of perfect documentation and zero disputes, I got one location's reserve reduced from 15% to 5%. The other two are still at 15% because they're newer.

It's a long game but provable documentation is the only way to get reserves reduced in service industries.

Switched to Helcim 4 months ago after reading this thread. Quick update for anyone considering:

Pros:

• No reserve (yet) despite processing similar volume to what I did on Stripe
• Interchange-plus pricing saves me about $400/month on fees
• Actual humans answer support within minutes
• They call ME to check in on my account periodically

Cons:

• Dashboard isn't as pretty as Stripe
• API documentation not as good (matters if you're a developer)
• No Stripe Radar equivalent for fraud detection

For most small businesses, Helcim is just better. Stripe is built for startups that want to IPO - not for normal businesses that just want to accept payments.

My Stripe reserve ($14K) released fully last week, exactly 120 days after my last transaction with them.

UPDATE: Remember me from earlier in this thread? $31K held for 8 months?

Filed CFPB complaint on January 5th following @JLawrence_Esq's advice. Stripe responded on January 18th with the most detailed explanation I've ever gotten:

Turns out my subscription box business was flagged because subscription models have historically high chargeback rates when customers forget they signed up. Makes sense I guess, but they never TOLD me this was the issue.

Resolution: They released $20K immediately, remaining $11K releasing over 90 days. They also gave me specific steps to reduce my "risk score" - mainly adding reminder emails before each billing cycle.

The CFPB complaint was the magic bullet. Cannot recommend it enough.

Gym/fitness studio owner here. Just got hit with a 15% reserve out of nowhere. $11,400 held so far.

My theory: Stripe's algorithm flagged me because gyms had massive chargeback rates during COVID when people couldn't use their memberships. That was 5 years ago but apparently we're still paying for it.

Anyone else in fitness dealing with this? What worked for you?

@GymOwner_West - yoga studio owner, same industry basically. Had a 20% reserve for most of 2024.

What finally worked: I switched to selling class packages instead of memberships. Stripe sees "one-time purchases" as lower risk than recurring billing. My reserve dropped to 5% within 2 months of making the switch.

It's annoying to change your business model for a payment processor, but it was either that or keep fighting them forever. Sometimes you just gotta adapt.

Also seconding Helcim as an alternative - I use them for my retail (merchandise) sales now and they've been great.

This thread is insane. I had no idea Stripe was doing this to so many people.

I run a small coffee shop with online ordering. Average transaction: $12. Annual volume: maybe $80K. Stripe hit me with a 10% reserve last month claiming "inconsistent processing patterns."

The "inconsistent pattern"? I had higher sales in December because of holiday gift cards. GIFT CARDS. During the holidays. How is that suspicious??

$2,100 held. Small potatoes compared to you guys but it's the principle. Why am I being treated like a criminal for selling coffee?

Sharing my small claims court experience since I haven't seen many of these here:

Stripe held $6,800 for 9 months. After CFPB complaint got no real resolution (they just said they'd "review" and then nothing happened), I filed in California small claims court.

Here's the interesting part: Stripe's arbitration clause may not apply to small claims in California. The Discover Bank v. Superior Court case established that small claims courts can hear disputes even when there's an arbitration agreement, depending on circumstances.

I filed for $6,800 plus $250 in filing fees. Stripe's legal team contacted me within 2 weeks offering to settle. They released the full $6,800 and paid my filing fee.

They didn't want the precedent of losing in small claims court. The cost of sending a lawyer to contest $6,800 wasn't worth it for them.

If you're in California with a smaller amount held, small claims might be faster than waiting for CFPB results.

@SmallClaimsWinner - great point about California small claims. A few states have similar exceptions to arbitration clauses for small claims matters. Worth researching for your specific state.

To summarize what's working based on this thread:

Tier 1 (Try First):

1. Formal reserve review request with documentation
2. Request escalation to Account Health team

Tier 2 (If Tier 1 Fails):

1. CFPB complaint (15-day response requirement)
2. Executive escalation emails

Tier 3 (Nuclear Options):

1. State AG complaint
2. State banking regulator complaint
3. Small claims court (state dependent)
4. AAA arbitration (for larger amounts)

Most people are getting resolution at Tier 2. The CFPB complaint has probably a 70-80% success rate based on what I'm seeing in this thread.

Life coach / online course creator here. Digital products = automatic high-risk flag apparently.

Stripe's been holding $34,500 since July 2024. That's 7 months. My chargeback rate is 0.3% which is slightly elevated but not terrible for digital products.

The chargebacks are almost always "I forgot I bought this" or "my kid used my card" - standard stuff for online courses. I have a clear refund policy and honor every legitimate refund request.

Questions for the group:

• Anyone in digital products/courses successfully reduced their reserve?
• Is 0.3% chargeback rate really that bad?
• Should I just accept this is the cost of doing business in my industry?

@CoachingMaria - same industry, same problems. Here's what helped me get from 20% reserve down to 7%:

1. Implement order confirmation emails with "click to confirm" links. This creates proof the customer intentionally purchased.

2. Add a checkbox at checkout: "I understand this is a digital product and agree to the refund policy." Screenshots of this have won me 4 disputes.

3. Offer easy refunds proactively. I send an email 7 days after purchase asking if they're satisfied, with a one-click refund button. Costs me some refunds but eliminates chargebacks.

4. Require email verification before delivering content. Prevents the "my kid bought it" claims.

My chargeback rate dropped from 0.4% to 0.08% after implementing these. Stripe automatically reduced my reserve after 3 months of the lower rate.

0.3% is high for Stripe's standards. Visa's threshold is 1%, but Stripe starts flagging at 0.2% in my experience.

Been reading this thread for weeks. Just want to say thank you to everyone sharing their experiences. I'm about to launch an ecommerce store and was planning to use Stripe exclusively.

After reading all this, I'm going to:

1. Set up Stripe AND Square from day one
2. Keep 3 months of operating expenses in savings in case funds get held
3. Document everything from the start
4. Keep my chargeback rate under 0.2% at all costs

Better to be prepared than to end up in the situations you all are describing.

Update from someone who DIDN'T get their reserve released easily:

Filed CFPB complaint in December. Got response saying reserve was "appropriate for my risk level." No release, no reduction.

Filed NY AG complaint in January. Still pending.

Sent executive emails. Got forwarded back to regular support.

$67,000 held. 10 months now. E-cigarette/vape retailer. I know my industry is "high risk" but this is insane. I have a 0.1% chargeback rate and have been in business for 6 years.

Currently consulting with an attorney about arbitration. At $67K, it might be worth it.

Not every story has a happy ending. Sometimes Stripe just decides your industry is too risky and there's nothing you can do except wait out the hold period and move on.

@RetailWoes - vape/e-cig is explicitly listed as a restricted business in Stripe's terms. They can essentially do whatever they want with accounts in that category. The fact they're processing for you at all is somewhat unusual.

For truly high-risk industries (vape, CBD, adult content, firearms-related, gambling), mainstream processors like Stripe will always be problematic. You need a specialized high-risk processor:

• Durango Merchant Services
• PayKickstart (for high-risk digital)
• eMerchantBroker
• Soar Payments

Yes, they charge 4-6% instead of 2.9%. But they actually want your business and won't hold 100% of your funds.

For $67K in arbitration: the filing fee is around $200 for claims under $75K and Stripe pays the rest of the arbitration costs. Might be worth pursuing, but manage expectations - their TOS gives them a lot of leeway for restricted businesses.

Wedding photographer here. Deposits are typically $2,000-$5,000 collected 6-12 months before the event. Stripe flagged me because of the "long fulfillment timeline."

15% reserve = $19,300 held over the past 8 months.

I get why they're cautious - if I went out of business, customers would chargeback those deposits. But I've been doing this for 11 years with ZERO chargebacks. My business credit score is excellent. I have insurance. Why am I being punished?

Anyone else in events/weddings found a solution? Or should I just use a different processor for deposits and Stripe only for final payments?

@WeddingBiz_Kate - event planner with similar issues. What worked for me:

I split my payments across two processors:

• PayPal for deposits (they seem more comfortable with advance payments)
• Square for final payments (at or near the event)

Neither has implemented a reserve on me in 2 years of this setup. I think spreading the risk profile across processors keeps any single one from flagging the account.

Also, I structure contracts so deposits are non-refundable after 90 days. This reduces chargeback risk because the card networks usually side with merchants on non-refundable deposits if it's clearly disclosed.

Texas Attorney General complaint update:

Filed complaint against Stripe with TX AG consumer protection division on January 3rd. Got acknowledgment letter January 10th saying they'd forwarded to Stripe for response.

January 28th: TX AG sent me Stripe's response. They're releasing my reserve ($23,400) within 30 days.

The TX AG complaint took about 25 days to get results vs. the 15 days people are reporting for CFPB. But it worked.

For Texans: the TX AG consumer protection complaint form is online at texasattorneygeneral.gov. Easy to file, free, and apparently effective.

Counterpoint to all the "file complaints" advice:

I just waited. Stripe held $12,000 for 120 days (their stated rolling reserve period), and then it released automatically exactly on schedule. No complaints, no escalations, no stress.

Not saying the complaints don't work - clearly they do for many people. But if you have the cash flow to wait, sometimes just letting the clock run out is the easiest path.

I continued processing with Stripe during this time. My reserve balance actually peaked at $18K before it started releasing. Now it's down to about $4K and dropping each month as old transactions release and I maintain low risk.

Just wanted to offer a less confrontational perspective. Not everyone needs to go nuclear.

FINAL UPDATE from me: All $43,000 released as of yesterday!

Timeline recap:

• Account terminated: August 2024
• CFPB complaint filed: October 2024
• Last transaction: October 15, 2024
• Funds fully released: February 19, 2024

That's 127 days after my last transaction. Their TOS said up to 180 days so I actually got it a bit early. Not sure if the CFPB complaint sped things up or not.

I'm now processing with Durango (high-risk processor). Fees are 4.2% instead of 2.9% but I've had zero issues in 4 months. Peace of mind is worth the extra 1.3%.

Good luck to everyone still fighting. It does eventually end.

Marketing agency owner. We process about $400K/month through Stripe for client retainers and project payments.

Got hit with a 5% reserve last year. At our volume, that's $20K/month being held. Currently sitting at about $85,000 in reserve.

What I learned: at higher volumes, you get an actual account manager. Mine is responsive and actually helpful. She explained that reserves at our level are more about protecting against a single large chargeback than about overall risk.

She also told me something interesting: Stripe's reserve algorithm weighs your LARGEST transaction heavily. We had one $45K project payment that triggered the reserve review. If I'd split that into multiple invoices, might have avoided the whole thing.

Tip for high-volume merchants: Ask for an account manager if you don't have one. They can advocate internally for reserve reductions in ways that support can't.

Nonprofit perspective here. We're a 501(c)(3) charity using Stripe for donations. They put a 10% reserve on us after our year-end giving campaign when we processed 3x our normal volume in December.

$8,400 held. For a nonprofit, that's significant.

What worked: I had our board chair (who is a retired bank executive) write a letter on our letterhead explaining we're a registered nonprofit, have been operating for 15 years, and provided our audited financials.

Reserve was removed entirely within 2 weeks. I think having a "respectable" third party vouch for us made a difference. If you have board members or advisors with business credentials, use them.

Pet supply ecommerce. Had 8% reserve for 5 months, just got it reduced to 3%!

What I did differently: I scheduled a Zoom call with my account specialist (had to request one - didn't even know that was an option). Showed them:

• My warehouse and inventory (via video)
• Shipping carrier dashboard showing 98.7% on-time delivery
• Customer service metrics (4.9 star average, 2-hour response time)
• Return/refund rate (only 1.2%)

The visual proof that I'm running a legitimate operation seemed to help more than any written documentation. They could see I'm not a fly-by-night dropshipper.

Ask for a video call if you can demonstrate your business visually. It humanizes the relationship.

IT consulting firm. We invoice $10K-$50K projects. Reserve hit us hard - 20% = $47,000 currently held.

The kicker? We've been with Stripe for 4 years with literally ONE chargeback (customer's company went bankrupt, wasn't even fraud).

Tried the CFPB route - got a response but no release. They cited "high average transaction value" as the risk factor.

Currently exploring moving to a traditional merchant account through our business bank. Higher fees but apparently more stable for B2B high-ticket services.

Has anyone had success with traditional merchant accounts vs. payment facilitators like Stripe?

@ConsultantDave - I help businesses set up merchant accounts for a living. Quick comparison:

Payment Facilitators (Stripe, Square, PayPal):

• Easy signup, no underwriting
• They take on the risk, hence reserves
• Can terminate you quickly
• Good for: new businesses, low-volume, standard risk

Traditional Merchant Accounts (through banks/ISOs):

• Application process with underwriting (credit check, business docs)
• You're approved based on YOUR risk profile
• Reserves are set upfront if needed, usually lower
• Harder to get terminated once approved
• Good for: established businesses, high-volume, B2B

For $10K-$50K B2B invoices, you're exactly who should be on a traditional merchant account. Your bank likely has a referral partner. Expect 2.4-2.7% + $0.10 per transaction with interchange-plus pricing.

The underwriting process is annoying but once you're through, you have way more stability than Stripe will ever offer.

Boutique hotel owner. Just discovered this thread after Stripe dropped a 25% reserve on us with NO warning.

$38,000 held overnight. We had a big wedding weekend with lots of room bookings.

I understand they see hospitality as high-risk (advance bookings, cancellation chargebacks). But 25%? On a hotel that's been operating for 12 years?

Reading through this thread now. Looks like CFPB + executive email is the move. Will report back.

@AngryHotelier - fellow hotelier here. Been through this twice now.

Hotels get flagged because:

1. Advance bookings = long fulfillment time
2. High cancellation rates in the industry
3. OTA chargebacks (Booking.com, Expedia bookings processed through your Stripe)

What helped me:

• Separate OTA bookings from direct bookings in your reporting to Stripe
• Show them your cancellation policy is clearly disclosed
• Provide occupancy data showing you're not a fly-by-night operation

Also consider using the OTA's own payment processing for their bookings. Booking.com has Payments by Booking.com. Keeps that risk off your Stripe account.

I got my reserve down from 20% to 8% using these strategies. Still annoying but manageable.

Since people keep asking about executive emails, here's the template that worked for me. Feel free to adapt:

---

Subject: Reserve Review Request - [Your Business Name] - Account [Last 4 digits]

Dear [Executive Name],

I'm writing to request an executive review of the reserve placed on my Stripe account. I've attempted to resolve this through standard support channels for [X months] without success.

Account summary:

• Business: [Name, brief description]
• Processing history: [X years] with Stripe
• Chargeback rate: [X%]
• Current reserve: [Amount held]
• Reserve percentage: [X%]

I believe this reserve is disproportionate to my actual risk profile because [specific reasons].

I'm requesting: [specific ask - reduction, release timeline, review]

I've attached documentation supporting my request. If this isn't resolved, I'll be filing complaints with the CFPB and [your state] Attorney General.

Thank you for your attention to this matter.

---

Send to firstname@stripe.com for executives you find on LinkedIn. Be professional, factual, and specific. Worked for my $22K reserve - got response in 3 days.

Plant nursery ecommerce. Live plants = high damage/DOA claim rate = Stripe thinks I'm risky.

They're holding $9,200. Not huge but annoying. 7 months now.

The issue is I DO have a higher refund rate (about 4%) because plants sometimes don't survive shipping. But those are REFUNDS I proactively issue, not chargebacks. Stripe doesn't seem to distinguish.

Any other businesses with high legitimate refund rates dealt with this? How do you explain to Stripe that refunds =/= risk?

@GreenPlant_Shop - I sell vintage/secondhand clothing. Similar issue - high return rate (12%) but almost zero chargebacks because I handle returns well.

What I did: Created a separate document showing:

• Refund rate: 12%
• Chargeback rate: 0.05%
• Refund-to-chargeback conversion rate: basically 0%

I argued that my HIGH refund rate actually PROVES I'm low risk - customers don't NEED to chargeback because I make refunds easy.

Stripe's risk team actually agreed with this logic. Got my reserve reduced from 15% to 5% after presenting this analysis.

Frame your refunds as a FEATURE, not a bug. You're preventing chargebacks by being customer-friendly.

Quick update: Filed CFPB complaint yesterday. Also sent executive email using @ExecutiveEscalator's template.

Got an auto-response from the executive email saying it was forwarded to "the appropriate team." We'll see.

Meanwhile I'm setting up a merchant account through our bank as backup. Can't afford to have $38K held indefinitely.

Pre-order/crowdfunding adjacent startup here. We take pre-orders for products in development. Stripe HATES this business model.

100% reserve. Yes, literally 100%. Every dollar we process goes into reserve. $156,000 held.

Their explanation: "Funds will be released upon delivery confirmation to customers."

I understand the logic but this completely defeats the purpose of pre-orders - we need the capital to manufacture the product. Classic chicken-and-egg.

Has ANYONE with a pre-order model found a processor that doesn't do this? Kickstarter/Indiegogo aren't options for various reasons.

@FrustratedStartup - hardware startup founder here. Dealt with this exact issue.

Options that worked for us:

1. Stripe with a bank letter of credit: We got our bank to issue a letter of credit covering 50% of our expected pre-order volume. Stripe accepted this as collateral and reduced reserve to 25%.
2. BackerKit: They're built for crowdfunding fulfillment and have relationships with processors who understand pre-orders. Fees are higher but they actually release funds.
3. PayPal Commerce Platform: Surprisingly more lenient on pre-orders if you have a track record. We showed them our previous successful product launch.

The bank LOC route is the most work but gives you the best rates. Talk to your business bank about it.

Also: structure pre-orders as "deposits" with final payment on shipping. Reduces the held amount since you're only collecting partial payment upfront.

Been following this thread since December. Just want to add some data points I've collected from reading everyone's experiences:

CFPB complaint success rate: ~75-80% based on reports here

Average time to resolution via CFPB: 15-20 days

Executive email success rate: ~50-60%

State AG success rate: ~60-70% (slower though)

Industries with highest reserves mentioned:

1. Dropshipping (15-100%)
2. Digital products/courses (15-25%)
3. Subscription services (10-20%)
4. Travel/hospitality (15-25%)
5. High-ticket services (10-20%)

Most recommended alternatives:

1. Helcim (general purpose)
2. Square (retail/POS)
3. Traditional merchant account (high-volume B2B)
4. High-risk processors (restricted industries)

Hope this summary helps newcomers to the thread!

@EcommerceMike - sorry for the late reply on the executive emails. Here's what I used back in January:

• Format: firstname@stripe.com
• Found names on LinkedIn by searching "Stripe" + titles like "Chief Business Officer" "VP of Operations" "Head of Risk"

The specific person who got me results was someone in the "Merchant Success" org. Not the CEO level - those get filtered. Mid-level executives actually read their email.

Also: I sent to 3 different executives simultaneously. Whoever responded first handled it. Shotgun approach works.

California-specific update: Filed complaint with CA Attorney General's office and ALSO the CA Department of Financial Protection and Innovation (DFPI).

The DFPI complaint was actually faster. They regulate money transmitters in CA and Stripe has to respond to them.

Timeline:

• Complaint filed: January 15, 2024
• DFPI acknowledged: January 18, 2024
• Stripe response to DFPI: February 1, 2024
• Reserve released: February 8, 2024

$29,000 released. About 3.5 weeks total.

For CA residents: dfpi.ca.gov has an online complaint form. It's specifically for financial services companies. Highly recommend as an alternative or addition to CFPB.

Checking back into this thread I started participating in months ago. Wild to see it's grown to 50+ comments.

Quick personal update: Still processing with Stripe, reserve is down to 2% now (from the original 15%). They reduced it gradually over 6 months of clean processing.

Key takeaway from my experience: Once you GET a reserve reduced, keep your account squeaky clean for 6+ months. Don't give them any reason to increase it again. That means:

• Respond to disputes within 24 hours
• Issue refunds proactively before customers even think about chargebacks
• Keep your delivery/fulfillment times consistent
• Don't have sudden volume spikes without warning Stripe first

It's annoying to "manage" your processor relationship but it's the cost of doing business with them.

This thread has helped a lot of people. Thanks @SmallBizMike for starting it and everyone for sharing their experiences.

Final update from OP:

My reserve is now fully released! All $15,247 back in my account. Took about 2.5 months from when I first posted here.

What worked for me: CFPB complaint (filed Jan 5, resolved Jan 18) + continued clean processing afterward.

Current status: Still with Stripe, reserve reduced to 3%. I've also set up Helcim as a backup processor just in case.

For anyone just finding this thread: READ THE WHOLE THING. There's gold in here - CFPB complaints, executive emails, state AG routes, alternative processors, industry-specific advice. This community saved my business.

Special thanks to @JLawrence_Esq for the legal guidance and @ReserveKiller_Dan for the initial roadmap. You guys are legends.