It is definitely possible, but it is important for you to understand how Stripe works first.
Let us quickly understand that why your account is frozen.
Stripe is not trying to steal anyone’s money. It’s a well-known company and it’s a backbone for many small and large merchants. They operate under strict financial regulation and as a payment processor, they are on the hook if fraudulent transactions slip through. Their compliance system is primarily designed to protect both businesses and customers.
Sometimes this means that they might act conservatively when something looks unusual. For example, the first transaction being worth $2,000.
Some of the merchants may feel that the support is unhelpful, but this is not reality. The frontline support of Stripe or any other payment service providers don’t actually have the full visibility into the deeper compliance flag on the account. So while it may feel like stonewalling, it’s really just them sticking to what they are allowed by their internal policy.
Many merchants have actually resolved this situation where they have received their funds back or have got their account activated.
There’s a simple way of doing that.
You can escalate it to senior team by reaching out directly to Stripe’s risk or compliance team. This can be easily done by contacting the executives at the company. Merchants may receive clear options like unblocking the account, refunding the client or sending funds back directly.
In the regulatory context, in regions like EU, UK, Stripe must comply with PSD2. And it is important for you to understand because they do need to explain holds in a transparent way if you escalate properly.
It is also important for merchants to understand about the best practices to avoid account freezes. You should be upfront during the onboarding process about your business model and average ticket size. Make sure that you upload clear documentation that is invoices, contracts and proof of delivery and always keep professional communication. Be respectful, be concise if your account is reviewed.
If you put your frustration on the communication email or if you use threats, then in most of the cases it will only delay the process and you might not get to a solution.
The final takeaway is simple. Stripe is a rock solid company that is trusted by millions of businesses worldwide in the USA, Canada, European Union, Australia. Their system is designed with security in mind, but sometimes good merchants get caught in the net. If that happens, the most effective path is respectful escalation and not endless tickets.
A tip which I want to share is that you should not rely on any one processor. Even the best companies sometimes freeze funds for compliance reasons. Always have a backup to keep your cash flow moving.