Stripe may, at any time, impose a Reserve on funds otherwise payable to you. A Reserve is an amount of funds Stripe holds to cover potential losses, chargebacks, refunds, fees, fines, or other amounts you may owe. Stripe may impose a Reserve if Stripe determines that there is a risk of non-payment, loss, or damage that Stripe is exposed to by providing the Services to you. Stripe will use its reasonable judgment when imposing a Reserve but need not notify you in advance.
This provision can cut off a business's access to its own revenue without advance notice, creating immediate and severe cash flow disruption particularly for small businesses.
Merchants using Stripe are subject to unilateral fund reserves and payout holds that can be imposed at Stripe's discretion, potentially cutting off access to revenue without advance notice. Stripe can terminate the agreement and continue holding funds for up to 120 days post-termination to cover potential chargebacks or disputes, creating significant cash flow risk for small businesses. You can review Stripe's Prohibited and Restricted Businesses list at stripe.com/restricted-businesses before signing up to assess whether your business type is subject to elevated scrutiny or termination risk.