Stripe Closed, Suspended or Froze My Account - What To Do to Solve it

I’ve never experienced this myself, but I wanted a backup plan in case Stripe ever impacts my business. That’s why I created this guide.

In this piece, I’ll explain:

• What to do if Stripe freezes, closes, or suspends your account
• Why these actions happen
• How to prevent it from happening

We are not Stripe customer support. This guide is the only help we can provide for this issue.

First off, why do certain accounts suffer from Stripe’s wrath?

Key Takeaways

• Stripe flags accounts for chargebacks or other policy violations.
• High-risk businesses face stricter reviews and may have account limits.
• Submitting requested documents quickly can help resolve suspensions faster.
• Having backup payment processors reduces risks if Stripe shuts down your account.
• Tools like chargeback alerts and Stripe Radar help lower the risk of account issues.

One major reason for Stripe account issues is a high chargeback rate. We’ll cover this in more detail later. A great way to reduce chargebacks is by using chargeback alerts, which we offer.

See how they work.

Why Does Stripe Freeze, Suspend, or Close Accounts?

Stripe uses advanced systems to flag accounts that show signs of risk. These systems analyze data like transaction patterns, customer locations, and purchase behavior.

These insights help Stripe prevent fraud, comply with regulations, and mitigate financial risk.

We’ll explore how algorithms and human reviews work together shortly.

Still, that doesn’t fully explain why.

Here’s why they typically close, freeze, or suspend accounts:

• Excessive chargebacks: If your chargeback rate goes above 1%.
• Geographical inconsistencies: Transactions suddenly shift from one country (like the US) to another.
• High-risk businesses: Certain industries, like gambling, face stricter rules.
• Unusual transactions: Large payments or sudden spikes in volume can trigger account reviews.

Stripe’s machine-learning models monitor these factors and flag risky accounts.

If flagged, the account goes to a human review team. At this point, Stripe may ask for documents to confirm your business complies with their rules.

If violations are confirmed, they may ban the account.

Even legitimate businesses can get flagged by Stripe’s systems. Fraud detection tools across industries have false positive rates as high as 30% to 70% [1].

Why would my business be “high-risk”?

Summary: Stripe may flag your account for unusual activity or if you’re a high-risk business.

What Does Stripe Consider a High-Risk Business?

Stripe labels some businesses as “high-risk” based on their industry or operations. These businesses face stricter oversight. Sometimes they’ll have account limitations, like reserves (where Stripe holds part of your funds).

Some indicators that may label a business as high-risk include:

• Businesses in regulated or high-fraud industries, like pharmaceuticals.
• Companies with frequent chargebacks, refunds, or fraud reports.
• Sellers of high-value items (e.g., jewelry) or subscription-based services.
• New businesses with little payment history or those in regions with high fraud rates.

If your business falls into these categories, it doesn’t mean Stripe will ban you. But you may face more reviews and rules.

For a full explanation of high-risk businesses and how to manage reserves, check out our guide on high-risk businesses.

What industries are high-risk?

Summary: High-risk businesses involve those in certain regions or operate in restricted/prohibited industries.

List of Stripe Restricted Industries & Prohibited Businesses

Stripe restricts or bans certain businesses to follow regulations and lower their risks. Operating in these industries without explicit approval can lead to account closures.

Below is an overview of some categories:

• Illegal products: Drugs, substances mimicking drugs (e.g., kava), or drug-use equipment.
• Adult content: Prostitution, escort services, adult live-chat, or pornography.
• Gambling: Online gambling, casino games, sweepstakes, or paid fantasy sports leagues.
• Financial services: Check cashing, debt collection, ATMs, and money orders.
• Weapons and dangerous materials: Firearms, ammunition, explosives, or certain knives.

Certain industries are restricted, not outright banned.

These businesses may use Stripe if they pass stricter due diligence:

• Content platforms: Sites where creators get paid for hosting or sharing content.
• Cyberlockers: File-sharing platforms that could distribute unauthorized content.
• Regulated industries: Like CBD products with legal THC levels or cryptocurrency wallets

To stay up-to-date, check Stripe’s official list of restricted and prohibited businesses on their website.

Now you know why you’re here. Let’s focus on solutions.

Immediate Actions to Take When Your Account Is Frozen, Suspended, or Closed

When Stripe freezes, suspends, or closes your account, quick action is critical. Follow these steps to resolve the issue as fast as possible.

Let’s begin with step 1.

Step 1: Review Stripe’s Notification Email

Stripe will usually send you an email explaining their decision. This email contains information you need to act on.

Review it and look out for the following:

1. Reason Provided:

The email will state why your account was flagged. Such as policy violations or suspicious activity.

2. Specific Instructions:

Stripe may ask you to submit documents or make changes to your business practices. Follow these directions. Ignoring them can delay resolution.

3. Next Steps:

Stripe may ask you to:

• Provide proof of your business legitimacy (e.g., registration documents).
• Change practices to align with their terms.
• Agree to temporary restrictions, like reserves or transaction limits.

See this guide for more information on reserves.

4. Contact Information:

Look for links to contact Stripe Support or appeal directly through your dashboard.

If Stripe’s email includes a link to a dashboard notification or appeal form, review it and follow all steps.

Didn’t receive an email? Reach out to Stripe Support immediately.

Step 2: Contact Stripe Support & Appeal

If you haven’t received a notification or if you need more help, contact Stripe Support to appeal the decision.

Here’s how to reach them:

• Live chat: Navigate here, sign in, and start a conversation.
• Email: Though their heretohelp@stripe.com email was previously available, Stripe now directs most cases to live chat.
• Twitter/X: Tag “@Stripesupport” and tell them your issue.
• Reddit: Their support staff appears on r/Stripe, though they mostly guide you toward other contact mediums.

Stripe’s customer service has a poor reputation, but staying polite and friendly can help. Even if the situation is frustrating, avoid assigning blame or showing anger. As this can derail the process.

When explaining your situation, be detailed. Share key information like your account ID, the date of the issue, and any relevant transaction IDs or error messages. Don’t share these details on public platforms like Reddit or Twitter.

If you’ve already tried to resolve the issue, mention the steps you’ve taken. Specifics make it easier for the support team to understand your case and act faster.

Persistence matters, too.

If the first response doesn’t solve the problem, follow up. Keep a professional tone. Refer to earlier conversations. Repeat your request with any supporting evidence to ensure your case gets the attention it needs.

Here’s an example of how you might craft your first email, inspired by the Redditor's approach:

Subject: Request for Review: Account Closure on [Date]

Email Body:

Dear Stripe Support Team,

My name is [Your Name], and I own [Your Business Name], which has been using Stripe since [Year] for payment processing. My account ([Account ID]) was recently closed due to concerns about unauthorized payments. I’d like to provide more context and request a review of this decision.

[Briefly describe your business. E.g., “I run a subscription-based digital fitness platform.”] Over the years, I’ve processed “X” transactions and followed Stripe’s policies. I’ve reviewed the flagged payments and found no evidence they were unauthorized.

I’ve attached the following documents to support my case:

• Customer payment authorization records.
• Bank statements from the last six months.
• Business registration documents.

This account issue has significantly impacted my operations. I hope we can resolve any misunderstandings quickly. Please let me know if you need more information.

Thank you for your time and assistance. I look forward to your response.

Best regards,

[Your Full Name]

[Your Contact Information]

If you’re talking via live chat, restructure the above template.

Wait. What documents should you send?

Step 3: Submit Necessary Documentation

If Stripe requests documents to review your account, submit them promptly. Missing or incomplete files can slow down the process.

Here are examples of what Stripe might ask for:

• Business bank statements: Show consistent, legitimate transactions.
• Proof of customer authorization: Records like signed agreements.
• Invoices or receipts: Provide detailed records of transactions.
• Business registration documents: Show your business is legal.
• Shipping records: Include tracking numbers or delivery confirmations for physical goods.

Send these through the Stripe Support portal or as outlined in their email. Double-check for accuracy before submitting.

What if the above doesn’t work and Stripe closes your account?

We might have a solution for that.

What If Stripe Permanently Closes Your Account?

To clear the air, Stripe cannot hold your funds forever. By law, they can only withhold your balance for up to 180 days to cover potential chargebacks or disputes.

After this time, they must release any remaining funds. If you don’t receive them, contact Stripe for clarification. Seek legal advice if necessary.

Another consequence of a permanent closure is the risk of being added to the MATCH (Member Alert to Control High-Risk) list. This list is managed by credit card companies. It flags businesses terminated by payment processors for reasons like compliance issues.

Being on the MATCH list can make it difficult to work with other payment processors.

Getting off the list is challenging, as entries usually remain for 5 years unless you:

• Resolve compliance issues (e.g., becoming PCI-compliant).
• Provide evidence that the listing was a mistake.
• Pursue legal action if the listing is unjustified.

For more details on handling the MATCH list, see our guide.

Finally:

You’ll need to transition to another payment processor. An option like Authorize.net caters to high-risk businesses and provides flexible solutions. Research and choose a processor that aligns with your business type to minimize downtime and maintain cash flow.

If your account isn’t closed yet and you just want to prepare. Let’s look at how to prevent this from happening.

Summary: Stripe can’t permanently hold your money, but there’s not much to do other than find a new processor.

Preventing Account Closures in the Future

To avoid Stripe account issues, focus on these areas:

• Reducing chargebacks
• Maintaining compliance with Stripe’s policies

Let’s begin with chargebacks.

Understanding & Reducing Chargebacks

A chargeback happens when a customer disputes a transaction, and their bank reverses the payment. Refer to our guide on chargebacks and the process for more information.

Here are the main causes of chargebacks and how to prevent them:

• Merchant errors: Mistakes like billing issues or unfulfilled orders.
  
  • Prevention: Use accurate billing systems and ensure timely delivery of products or services.
• Friendly fraud: Customers dispute valid charges due to forgetfulness or misunderstanding.
  
  • Prevention: Provide clear communication and use detailed transaction descriptors.
• True fraud: Unauthorized transactions from stolen payment details.
  
  • Prevention tip: Use fraud detection tools to identify and block suspicious activity.

No single tool can prevent all types of chargebacks. Nor can you prevent all chargebacks. But you can prevent a lot of them.

Tools like chargeback alerts can reduce occurrences. These alerts notify you of disputes early. Giving you time to resolve them before they escalate. For example, our chargeback alerts have helped businesses prevent up to 91% of disputes and work seamlessly with Stripe.

Stripe also offers tools to help manage fraud and chargebacks:

• Stripe Radar: Identifies and blocks fraudulent transactions in less than 100 milliseconds, with a false positive rate of only 0.1%.
• Chargeback protection: Covers disputed amounts and waives fees for fraudulent chargebacks.

Each payment processor handles chargebacks differently. Familiarize yourself with Stripe’s policies. For more details, see our guide on managing Stripe disputes.

Now, let’s talk about policy compliance.

Summary: Keep chargeback rates below 1% by using fraud prevention tools and having better billing systems.

Maintaining Compliance with Stripe’s Policies

Here’s how to align your business with Stripe’s terms and avoid potential problems:

1. Review Stripe’s Restricted Business List:

Stripe regularly updates its list of prohibited and restricted businesses. Check it often to ensure your business remains compliant.

2. Avoid High-Risk Practices:

Certain activities can trigger account reviews. These include large, irregular transactions or sudden volume spikes.

Here are some tips to avoid this:

• Break large payments into smaller transactions when possible.
• Avoid frequent manual payouts, as these may raise red flags.
• Use clear transaction descriptions to reduce confusion and prevent chargebacks.

3. Stay Ahead of Policy Changes:

• Monitor your dispute rate and address increases quickly.
• Use Stripe’s dashboard analytics to track transaction trends and identify potential issues.
• Review your processes every quarter to ensure they align with Stripe’s rules.

And finally…

Importance of Backup Payment Processors Early On

Even if your business isn’t high-risk, having a backup payment processor is critical. For high-risk businesses, it’s even more important. Processors like Authorize.net or Payoneer cater to industries with stricter requirements. They can also provide a lifeline if Stripe closes your account.

Setting up a backup processor early ensures your business can continue operating without disruptions. Don’t wait for an emergency — plan ahead.

That being said, let’s finish this off with some “Q” and “A.”

FAQs

Can Stripe Take Money Out of My Bank Account?

Yes, Stripe can withdraw funds from your bank account. This happens if your Stripe account has a negative balance and they need to process refunds. They’ll notify you by email before doing this.

How Long Does Stripe Normally Take to Pay You?

Your first Stripe payout can take 7 to 30 days, depending on your location and industry. After that, payouts are processed based on your chosen schedule (e.g., daily or weekly).

Wrapping Up

If your account is frozen, suspended, or closed, contact Stripe to appeal. If they’ve emailed you, reply with the requested documents.

To avoid these issues, focus on lowering your chargeback rate. While it won’t solve every problem, it can prevent many. Tools like chargeback alerts can help.

Want to see if they’re right for your business?

Learn more here.

Sources

• [1] False Positives in Credit Card Fraud Detection. Hawaii International Conference on System Sciences. 2022. PDF.