Stripe Account Frozen? Here's What to Do
Step-by-step guide to understanding, appealing, and preventing Stripe fund holds.
Last updated: October 2025 • 8 min read
Why Stripe Freezes Accounts
Stripe holds or freezes funds for several reasons, usually triggered by automated risk systems:
1. High Chargeback Rate
If your chargeback rate exceeds 0.65%, Stripe's risk systems flag your account. At 1.0%, they typically implement a rolling reserve or freeze.
2. Sudden Volume Spike
Processing 3-5x your normal monthly volume in a short period triggers fraud alerts. This is common during:
- Product launches
- Viral marketing campaigns
- Seasonal sales (Black Friday, etc.)
3. Prohibited Industry Detection
Stripe scans transaction descriptions, website content, and customer complaints. Red flags:
4. Identity Verification Issues
- Mismatched business address
- EIN/SSN doesn't match IRS records
- Beneficial owner information incomplete
- Failed identity document verification
5. Terms of Service Violation
Common violations that trigger freezes:
- Future delivery: Pre-orders >60 days out
- Misleading billing descriptors: Customer doesn't recognize charge
- Refund policy violations: Not honoring stated refund terms
- Card testing: Multiple failed authorizations from same IP
What Happens When Stripe Freezes Your Account
How to Appeal a Stripe Account Freeze
Step 1: Gather Documentation
Before contacting Stripe support, prepare:
- ✅ Last 3 months of order fulfillment records
- ✅ Tracking numbers for shipped products
- ✅ Customer service email logs (showing timely responses)
- ✅ Refund policy (must be visible on website)
- ✅ Chargeback prevention measures you've implemented
- ✅ Updated business documentation (EIN letter, business license)
Step 2: Contact Stripe Support
Email support@stripe.com with subject line: "Appeal: Account Hold - [Your Stripe Account ID]"
Template: "I understand my account was placed on hold due to [specific reason if known]. I've taken the following steps to address this issue: [list specific actions]. I'm requesting a review of my account and would like to provide additional documentation to support reinstatement. Attached: [list documents]."
Step 3: Implement Risk Mitigation
While waiting for Stripe's response, take these actions:
- Enable Stripe Radar: Fraud detection (should already be enabled)
- Set up RDR: Rapid Dispute Resolution to prevent chargebacks
- Update billing descriptor: Make it crystal clear (use DBA name)
- Add 3D Secure: For transactions >$100 or international orders
- Customer confirmation emails: Clear receipts with contact info
Step 4: Timeline Expectations
- Initial response: 24-72 hours
- Document review: 5-10 business days
- Reserve release: 7-90 days (depends on risk level)
- Full account reinstatement: Rarely happens; usually they keep monitoring reserves
Alternatives to Stripe
If Stripe permanently suspends your account or implements indefinite reserves, you need alternatives:
Similar Risk Profile (May Also Decline)
- PayPal: Similar risk tolerance, shares data with Stripe
- Square: Even stricter than Stripe for high-risk industries
- Shopify Payments: Powered by Stripe, will likely have same issues
High-Risk Friendly Processors
These processors specialize in businesses Stripe rejects:
- PaymentCloud: CBD, supplements, subscription boxes
- Durango Merchant Services: High-ticket, continuity billing
- Easy Pay Direct: Offshore processing, highest risk tolerance
Trade-offs: Higher fees (3.5-6.9% vs Stripe's 2.9%), rolling reserves, contract lock-ins.
Find the Right Processor for Your Business
Not sure which payment processor will accept you? Run a free GuardScore assessment to get:
- ✅ PSP matches based on your business model and region
- ✅ Risk score analysis (what processors see when they review you)
- ✅ Approval probability for each processor
- ✅ Warm intro to vetted high-risk processors
Preventing Future Stripe Freezes
Monitor Compliance Changes 24/7
Stripe updates their Prohibited Business List and Restricted Business requirements without warning. Missing these changes = account freeze.
⚠️ Get Free 24/7 Alerts
Join MerchantGuard's free Telegram channel for instant alerts when Stripe, PayPal, Shopify, Square, and 20+ processors change their policies. Know before your account gets flagged.
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Keep Your Chargeback Rate Low
Target: <0.5% for Stripe safety. Best practices:
- Enable Ethoca + Verifi alerts ($15-25/month)
- Use clear billing descriptors (exact business name)
- Send confirmation emails with tracking info
- Respond to customer service requests within 24 hours
- Implement fraud screening for international orders
Communicate Volume Spikes
Planning a launch or campaign? Email Stripe support 1 week in advance:
"We're launching a marketing campaign on [date] that may increase our volume by [X]%. Expected volume: $[amount]. Campaign details: [brief description]. Please flag our account to prevent automated holds."
Alternative: Get Expert Help
Dealing with Stripe freezes, appeals, and PSP matching manually is time-consuming. Use AI tools to automate this:
🤖 Ask MerchantGuard AI
Get instant answers to Stripe account issues, PSP alternatives, and compliance questions using our free ChatGPT-powered AI assistant.
Chat with MerchantGuard AI →Powered by ChatGPT • Free to use • Expert payment processing advice
Key Takeaways
- ✅ Stripe freezes are common for high-risk industries, high chargebacks, or volume spikes
- ✅ Appeals take 5-10 days and require extensive documentation
- ✅ Prevention is easier than recovery—monitor compliance changes with free alerts
- ✅ Have a backup processor ready before you need it (don't wait for a freeze)
- ✅ Use GuardScore to find PSP alternatives that match your risk profile