Imagine checking your Stripe dashboard on a busy Monday morning only to find your account frozen and thousands in payments stuck in limbo.

Your business isn’t alone in facing this challenge. While Stripe remains one of the most popular payment processors for online businesses, their strict risk management policies can catch even legitimate businesses off guard.

In this guide, I’ll walk you through exactly what triggers these freezes, if you can get your account back online quickly, and most importantly, how to protect your business from future payment disruptions.

AVOID STRIPE FREEZES FOREVER

Understanding Account Freezes

I’ve witnessed countless Stripe account freezes, and they typically fall into three distinct categories. A temporary hold requires specific actions from you to release funds, a full account freeze prevents both incoming and outgoing transactions, and an account termination completely cuts off your access to Stripe’s services.

Common Triggers for Account Freezes

Your Stripe account can face restrictions when their algorithms detect unusual patterns.

The most frequent triggers include sudden spikes in sales volume, unusually large transactions, or an influx of international payments.

I’ve noticed that businesses often get caught off guard when scaling quickly, as rapid growth can trigger Stripe’s risk assessment systems.

Duration of Account Holds

When Stripe freezes your account, they typically hold your funds for 90 days initially.

However, this period can extend up to 180 days, especially if they keep renewing the hold period. This extended timeline allows Stripe to cover potential chargebacks and disputes that might arise after the freeze.

NOTE: The withheld funds will NOT be used to pay for chargebacks, etc. That is Stripe’s last resort. You must pay out of pocket for anything that arises. The only way Stripe will use the funds they hold from you is if you default or claim bankruptcy.

High-Risk Business Categories

Certain business types face higher scrutiny. If you’re operating in industries like supplements, CBD, adult content, digital content, or dropshipping, you’re more likely to experience account freezes.

Stripe takes a particularly cautious approach with these sectors due to their historically higher chargeback rates and regulatory challenges.

They can only provide services to low-risk businesses because they are allowing your business to operate under their merchant account.

The Role of Chargebacks

A spike in chargebacks remains one of the most common reasons for account freezes.

When multiple customers dispute charges within a short timeframe, Stripe’s system flags this as potential fraud. From what I’ve seen, maintaining a chargeback rate below 1% significantly reduces your risk of account restrictions.

REDUCE CHARGEBACKS, IMPROVE CONVERSIONS

Immediate Action Steps

You most likely won’t get your account back. But you can get your funds back. Here’s what to do to keep your business running and to get your money from Stripe.

Review the Freeze Notification

I’ve learned from handling numerous account freezes that your first move should be thoroughly reviewing Stripe’s notification email.

Look for specific compliance issues they’ve flagged and any requested documentation. Don’t skip the fine print – Stripe often includes crucial details about your next steps in these notifications.

If there is something specific Stripe is looking for: do it, document it, submit it. If it’s something simple, then you may get your account back up and running. But the clock is ticking.

Document Everything

Start a detailed log of your account status and all communications. Take screenshots of your dashboard, recent transactions, and any error messages. I recommend creating a dedicated folder with your business documentation, including:

• Business registration documents
• Recent bank statements
• Processing history
• Customer communication records
• Proof of product delivery

This folder will also help you quickly apply to new PSPs (Payment Service Providers) and merchant account providers.

Communication with Stripe Support

Launch a multi-channel approach to reach Stripe’s support team. While their email support serves as your primary contact, I’ve found that taking additional steps significantly improves your response time:

1. Open a support ticket through your Stripe dashboard
2. Send a formal business letter via certified mail to Stripe’s legal department. Include your account details, business documentation, and a clear timeline of events. Always request a signature and keep the tracking number:

  Stripe, Inc

  ATTN: Legal Department

  354 Oyster Point Blvd

  South San Francisco, CA 94080

Maintain Business Continuity

While working through the freeze, you need to keep your business running. I recommend immediately:

• Setting up a backup payment processor—open both a PSP like PayPal or Square to start accepting payments ASAP and a merchant account for longevity
• Communicating transparently with your customers about potential payment delays
• Documenting all new orders and customer interactions meticulously
• Keeping detailed records of any revenue impact from the freeze

Engage with Your Customers

Contact any customers whose payments might be affected. Be proactive and transparent about the situation. I’ve seen businesses maintain customer loyalty during account freezes by offering alternative payment methods and keeping communication channels open.

Keeping your customers somewhat in the loop can help reduce chargebacks, as well.

Remember, your response in the first 24-48 hours can significantly impact how quickly you resolve the situation. Stay professional in all communications, and avoid making multiple support requests about the same issue – this can actually slow down the resolution process.

OPEN YOUR DEDICATED MERCHANT ACCOUNT

Prevention Strategies

To avoid Stripe shutting you down or freezing your funds, here are some strategies to implement.

Build a Multi-Processor Setup

Your business needs more than one way to accept payments. I always advise my clients to maintain relationships with at least two payment processors simultaneously.

This approach ensures you can continue processing transactions even if Stripe freezes your account. When setting up multiple processors, distribute your transaction volume between them to establish processing history with each.

Stripe has a soft $20k/month volume limit. I’d advice processing low-ticket sales through Stripe and make sure you don’t get too close to that $20k limit.

Risk Management Implementation

Implement comprehensive risk management practices to protect your payment processing operations:

• Monitor transaction patterns closely for unusual activity
• Deploy fraud detection systems
• Use real-time transaction monitoring
• Maintain detailed customer records

Maintain Compliance Standards

Stay current with payment industry regulations and maintain strict compliance standards. Your business should:

• Follow PCI DSS requirements rigorously
• Keep detailed documentation of all transactions
• Regularly update your security protocols
• Conduct periodic security assessments

Transaction Volume Management

One of the most effective prevention strategies I’ve implemented with clients involves careful transaction volume management:

• Gradually increase processing volumes
• Alert your processor before significant volume increases
• Monitor your monthly processing patterns
• Document seasonal fluctuations

Chargeback Prevention

Implement a robust chargeback prevention strategy to avoid triggering account freezes:

• Keep detailed records of all transactions
• Respond promptly to customer disputes
• Use clear billing descriptors
• Maintain transparent refund policies

Remember, prevention requires constant vigilance. I’ve seen too many businesses take a reactive approach and pay the price. By implementing these strategies proactively, you’ll significantly reduce your risk of experiencing a Stripe account freeze.

GET A BACKUP PROCESSOR NOW