Research

What To Do When Stripe Shut Down Your Account

November 15, 2023
5 min read

Stripe's practice of abruptly closing accounts with no warning or explanation has left many merchants wary of the platform. Additionally, the company's habit of holding funds from these accounts has only added to its unfavorable reputation in the business world.

If your account has been closed, fear not! In this comprehensive guide, we'll break down how to get back on your feet. 

What Happens When Stripe Terminates Your Account?

When Stripe decides to terminate your account, they'll send you an email confirming the closure. This closure is permanent, but there's still hope if you believe it was a mistake. You can request to have your account reinstated.

If you no longer have access to the email linked to your Stripe account, don't fret. You can connect with a Stripe representative by visiting their support portal. When an account is closed, Stripe holds any funds processed through their platform for 180 days. This safeguard is in place to cover potential disputes or chargebacks related to your business transactions, as required by card networks. For more information on Stripe's requirements during this period, refer to their support page.

Once the 180-day holding period has passed, you can transfer the funds from your Stripe dashboard to your bank account. You'll also be able to view any deductions made against your funds if any disputes or issues arose during the hold period. Stripe will assess these disputes and offset them from your remaining balance.

Why Was Your Stripe Account Terminated?

Stripe's onboarding process is convenient for business owners, but the criteria for evaluating your business and its offerings are mainly in Stripe's hands. Stripe's policies allow them to close your account for various reasons, and they aren't obligated to provide an explanation for their decision. According to Stripe's terms of service, they can terminate your account for "any or no reason." (you can easily find it in the 6.1 (b) section).

Some common reasons for Stripe to close your merchant account include:

  1. Policy Violations: Violating Stripe's Terms of Service, Acceptable Use Policy, or any other policy can result in account closure.

  1. High Chargebacks: Excessive chargebacks or disputes on your account can trigger account closure.

  1. Insufficient Funds: If your account is overdrawn and lacks the necessary funds to cover transactions being held, Stripe might close your account.

  1. Inactivity: If you haven't been processing with Stripe for 90 consecutive days, they may shut down your account.

  1. Inaccurate Financial Information: If your financial information cannot be verified or is found to be inaccurate, your account may be at risk.

What to Do?

Now that your Stripe account has been terminated, it's time to take action. Here's a step-by-step plan to help you navigate this challenging situation:

  1. Read the Notification: Carefully review the notification sent by Stripe. It often contains additional details about the reason for their decision.

  1. Check Your Bank Accounts: Monitor your bank accounts for any changes. Stripe may stop making deposits or debit your account for disputes or fees.

  1. Complete Pending Transactions: If there were transactions that were left incomplete at the time of the account closure, consider using another payment provider to process these sales.

  1. Explore New Payment Providers: Seek out a new merchant account with another processor, such as Volume, Redde, or Trustly and use their virtual terminal to issue refunds for any chargebacks or negative transactions from your closed Stripe account.

Will I Get Back My Account ?

In general, getting your terminated account reopened is unlikely, but you might be able to sign up for a new one. Stripe will usually inform you if they are willing to reinstate your account or allow you to apply for a new one. If your account was terminated due to activities that Stripe disapproves of, like fraudulent activity or selling restricted products or services, reopening your account is improbable.

However, if your account was closed due to inactivity or because your business underwent some changes, it might be possible to reopen it and resume using it. Be cautious, though, as attempting to open a new account under a different name or business might result in a similar outcome if Stripe detects a pattern of undesirable activity.

Instead of risking another shutdown, consider exploring alternative payment providers that can quickly get your business back on track. This proactive approach can help you avoid further business disruptions and uncertainties.

Embrace a Smoother Checkout Experience 

If you've found yourself grappling with Stripe's abrupt account closures and fund holds, there's a better way forward. Enter Volume, the game-changing alternative to Stripe that's making waves in the payment industry.

Our unique One-click checkout technology is set to revolutionize your customers' payment experience. No more hassle with card numbers, emails, or home addresses. With Volume, it's as simple as one click, connecting your customers directly with their preferred bank to complete the order securely.

But that's not all; Volume offers Zero hidden fees and accommodates and works with every bank in the world. Payments are settled in real-time, ensuring swift and hassle-free transactions.

Ready to Upgrade Your Payment Experience? Say goodbye to frustration and hello to simplicity.

Book a call with Volume’s team

Volume Payments Limited is a private limited company with company number 12431529

Volume Payments Limited, is a distributor of Modulr FS Limited, a company registered in England and Wales with company number 09897919, which is authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr FS Limited. Whilst Electronic Money products are not covered by the Financial Services Compensation Scheme (FSCS) your funds will be held in one or more segregated accounts and safeguarded in line with the Electronic Money Regulations 2011. for more information please see the Modulr safeguarding letter

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