Stripe's internal escalation teams respond differently to legal demands than to support tickets. A formal demand letter citing specific California Business & Professions Code violations and threatening AAA arbitration signals that you're prepared to pursue your legal rights.
Stripe's Terms require arbitration through the American Arbitration Association. This generator creates both the demand letter AND the arbitration demand, giving you everything needed to escalate if Stripe doesn't respond within your deadline.
A Stripe reserve is when Stripe holds a percentage of your earnings (typically 20-30%) or freezes your entire balance due to perceived risk. This can happen suddenly, often with minimal explanation, leaving businesses without access to their own money. While Stripe claims reserves protect against chargebacks and fraud, many legitimate businesses find themselves caught in these holds for months—sometimes indefinitely.
While Stripe's terms give them broad discretion, you still have rights. State money transmission laws often require payment processors to release funds within specific timeframes. The Electronic Fund Transfer Act may apply to certain Stripe accounts. Consumer protection laws in your state may limit how long companies can hold customer funds. A demand letter citing these laws often triggers faster resolution than standard support requests.
If Stripe doesn't respond to your demand letter within 14 days, consider filing complaints with your state attorney general, the Consumer Financial Protection Bureau (CFPB), and the Federal Trade Commission. For amounts over $10,000, consulting with a business litigation attorney may be worthwhile. Many Stripe disputes are resolved after regulatory complaints are filed.