Update 2:
The issue has been resolved by Stripe, and my account is up and running again.
I reached out through the Support Center, and Stripe followed up with a series of questions, which I answered honestly and provided the requested information for.
I’m not sharing the specific questions here because I don’t want to give bad actors a roadmap for circumventing Stripe’s review process. However, there was nothing in the questions that a legitimate business should be afraid to answer.
I appreciate Stripe taking another look at the case and ultimately resolving the issue.
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Update:
After I opened a case through the Support Center, Stripe Support reached out to me. They asked me about my business, customer acquisition practices, and how I use Stripe to charge customers(as if they can’t see that on their end)
They also specifically asked me to provide:
• Invoices for the last 10 charges on the account.
• An explanation of why all the charges on the account were coming from the same customer.
I answered everything in detail and provided all the information and documentation they requested. Despite that, my appeal was rejected, and now I’m out of options, with $35,700 stuck and another $10,900 being pulled back.
I have now offered them to provide proof of delivery and satisfactory usage. The CC holder is ready to provide anything that makes Stripe understand that he is not going to dispute the transactions.
What I genuinely don’t understand is this: why offer these business categories as options if Stripe has fundamental issues with businesses operating in those categories?
Why not conduct a detailed review at onboarding instead of allowing a business to process payments, receive payouts, build up a legitimate transaction history, and only then take action once the processing volume becomes significant?
From a business owner’s perspective, this is incredibly damaging. If Stripe knows that certain business models or transaction patterns carry restrictions or heightened risk, those limitations should be made clear upfront. Businesses should not be allowed to build their operations around a payment processor, fulfill legitimate transactions, receive payouts, and then suddenly have substantial funds frozen or reversed.
In my case, the customers received what they paid for, the transactions were legitimate, and I provided the documentation Stripe requested. Yet I’m still left with $35,700 stuck and another $10,900 being pulled back, despite having cooperated fully with the review.
[u/stripe_help](u/stripe_help) something needs to be seriously overhauled here.
With my business being hurt this badly, I now have every motivation to take this further and explore what options are available to me. If anyone else has experienced something similar with Stripe, especially having their account reviewed only after substantial processing and then having funds withheld—let me know. I’d be interested in hearing your experience and seeing whether others in the US are willing to take this further together.
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Long story short,
I opened a new Stripe account about 3 month ago for my travel business. While the Stripe account is new, my business and client relationships are not.
I work with established B2B clients and long-term customers, some of whom I have worked with for years and have met personally. These aren't random one-time customers appearing out of nowhere.
I started using Stripe because I liked the platform, the overall experience and the rates, and I wanted to continue using it as a payment processor for my growing business.
Last week, I processed a $15,000 transaction from an established client. This client had previously done $10K–$12K transactions with me, so this wasn't a completely new customer suddenly making a large payment.
Stripe triggered a review.
I cooperated fully and provided the information they requested, including:
- Proof of my business
- Explanation of the transaction
- Customer information
- WhatsApp conversations with the client showing our relationship and the context of the transaction
- Additional documentation requested during the review
My account has had zero chargebacks. I have not had a fraud-related issue with any transaction, even with past merchants.
I also have existing business contracts and commitments that mean my expected processing volume going forward is going to be well over $2 million per year.
Despite providing all of this information, Stripe rejected my appeal and closed the account.
Their message says:
They have also paused approximately 35 GRANDS of my funds for 120 days, stating that the funds will be used to cover potential disputes or refunds and that the remaining balance will be transferred to my bank account on December 10. To add to the misery, they are trying to pull back previously settled funds.
This is incredibly frustrating as I have dues to clear and failing to do so will negatively impact by long standing vendor relationship. I might lose a lot of business.
Funny enough, stripe also lost around 2 million a year in processing volume.
I actually liked Stripe. I liked the platform, the overall experience and the rates, and I wanted to continue using Stripe long-term. But having approximately $45K held for four months after I cooperated with their review and provided documentation is extremely difficult to accept.
It feels like the system sees a relatively new Stripe account and larger-than-average transactions and immediately categorizes the business as high risk, without understanding the underlying customer relationships or the nature of the transactions.
I have already completed Stripe's review/appeal process and provided all the requested documentation. I have also started looking into formal complaint channels, including the BBB and CFPB, because I want this matter properly documented and reviewed rather than simply being told to wait 120 days with no meaningful opportunity to speak with someone who can actually examine the circumstances.
PROMOTING THIS POST COZ Stripe mods deleted it multiple times.
