As an online merchant using Stripe to process your payments, it can be frustrating to find out that your funds are being held. However, there are a few reasons why Stripe might hold your funds, and steps you can take to resolve the issue.
- Risk Management: Stripe may hold your funds if their risk management system detects suspicious activity, such as a high level of chargebacks, refunds or disputes, or if you have a history of violating their terms of service. In this case, Stripe may hold a portion of your payments as a security measure until the risk of chargebacks or fraud is mitigated.
- Verification: Stripe may hold your funds if they need to verify your account details or identity. This can happen if you’ve made changes to your account, such as updating your bank account information or business details. To resolve this, you may need to provide additional documentation or information to verify your identity or business.
- Legal or Compliance Issues: Stripe may hold your funds if there are legal or compliance issues that need to be resolved. This can happen if you are operating in a high-risk industry or if you have violated any regulatory requirements, such as anti-money laundering (AML) and know your customer (KYC) regulations.
If your funds are being held by Stripe, the first step is to contact their support team and ask for more information about why your funds are being held. They can provide specific details about the reason for the hold and what steps you can take to resolve the issue.
To help resolve the issue quickly, you may need to provide additional documentation or information, such as bank statements, business licenses, or identification documents. You may also need to work with Stripe’s risk management team to identify and address any potential risks.
In conclusion, Stripe may hold your funds for a variety of reasons, but by working with their support team and providing any necessary documentation or information, you can often resolve the issue and have your funds released. It’s important to stay compliant with Stripe’s terms of service and regulatory requirements to avoid future issues with fund holds. Feel free to reach out to us at GetPayment so we can help you with your stripe issues in greater detail!