Home/Shut down?/Your processor froze your money. Here's what to do now.
Shut down?
Your processor froze your money. Here's what to do now.
A freeze means the processor is holding payouts while it reviews risk, refunds or disputes. Stripe's stated practice after a risk closure is usually 120 days, then a review. PayPal's risk holds generally last up to 21 days, longer for challenged payments. We can't force a release. Get the reason in writing and download your records. The processor decides.
We place payment processing, business banking and crypto rails for high-growth, complex businesses with institutions that take the industry, then watch the chargeback ratios, reserves and reviews that get accounts closed, with more than one rail so one bank's no doesn't stop the business. Approval is never guaranteed.
This is stressful. Here's what's actually happening, and what to do first.
In the next 48 hours
- Get the reason in writing. Ask the processor or bank which policy or rule they applied.
- Download everything. Statements, transaction history and dispute records, before access goes.
- Don't reopen under a new name. Banks check the owners, not just the company.
What not to do
- Don't reopen under a new entity. Banks check the owners, not just the company name.
- Don't change how the business is described so a reviewer sees a different company than the one that was shut down.
What this means for your next approval →
How long can a processor hold my funds?
It depends on the contract:
- Stripe: usually 120 days from the closure or restriction email, then a formal review that can release, keep holding or cancel the payout (Stripe Unacceptable Risk Policy). Detail: how long Stripe holds funds.
- PayPal: risk holds generally up to 21 days; funds tied to a challenged payment generally no longer than 180 days (PayPal User Agreement, Sep 14, 2026).
- Square: can withhold funds or set a reserve under its Payment Terms (Square Payment Terms, Jul 30, 2026).
Why do processors hold money?
Refunds and chargebacks can arrive months after the sale. If you can't cover them, the acquiring bank pays. Reserves and holdbacks are how banks protect against that (OCC Merchant Processing handbook).
Can someone get my funds released?
No outside party can release money another provider holds. You can shorten the wait by keeping the account open, refunding customers, answering disputes and responding to every request with documents.
Is there a fixed release date?
Not in Stripe's contract. It releases a reserve when Stripe is satisfied the risk has passed (Stripe Services Agreement, Service Terms). The UK Financial Ombudsman found a 120-day hold after closure standard, but still awarded interest when Stripe kept extending it (UK Financial Ombudsman decision DRN-6072193).
What happens next?
We're not a bank, processor, or money transmitter. We structure the deal, build the file, and place it with institutions in our network: decades of relationships with 40+ financial institutions and solution providers. The bank decides, and approval is never guaranteed.
Related
Questions
Can Stripe keep my money forever?
Stripe's policy says it typically holds payouts for 120 days, then reviews. Its contract releases reserves only when it's satisfied the risk has passed, with no fixed date.
Can you get my frozen funds released?
No. Only the provider holding the funds can release them. We help with what comes next: a new account with a bank that underwrites your business.