Stripe can hold back a portion of the money you earn through your account at any time if it decides your business presents a financial risk, and it can increase that held amount or suspend your payouts based on its own assessment.
This analysis describes what Stripe's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The terms authorize Stripe to withhold funds from your business account based on its own risk determination, with the ability to modify the reserve amount at any time, which can create immediate cash flow disruptions for businesses dependent on Stripe payouts.
Interpretive note: The provision's broad discretionary language may be constrained by applicable state commercial law or payment services regulations in specific jurisdictions, particularly the EU and UK, creating uncertainty about enforceability of the 'sole judgment' standard in those markets.
Changed from 'reasonable judgment' standard to 'sole judgment' and added explicit ability to debit bank accounts directly for reserves, strengthening Stripe's unilateral power.
View full change record →This provision authorizes Stripe to hold funds earned by a business, delay settlement, or suspend payouts to the business's bank account based on Stripe's internal risk assessment, potentially affecting the business's access to revenue without a fixed timeline for release.
How other platforms handle this
If you do not timely cancel your subscription, your subscription will be renewed at the full price as indicated when the purchase was made, without any additional action by you, and you authorize us to charge your payment method for these amounts.
You also authorize us to retry any failed authorizations. We may use data provided to us by our partners to determine when to schedule such retries.
Any renewal of your AC WhatsApp Service subscription or your WhatsApp Credit Subscription will be at the then current prices listed on, or otherwise accessible via, the ActiveCampaign Pricing page without applying any prior discount.
"Stripe may, at any time and in its sole judgment, place a Reserve on your Stripe Account if we believe there is a high level of risk associated with your business, your Stripe Account, or your transactions. A Reserve is an amount of your funds that we set aside to protect Stripe against the risk of Reversals, Chargebacks, Claims, fines, fees, or other losses or liabilities. We may fund a Reserve by withholding settlement funds and/or by debiting your bank account. If we place a Reserve on your Stripe Account, we will notify you of the amount of the Reserve, the reason for the Reserve, and any opportunities you have to reduce or remove the Reserve. Stripe may modify the amount of the Reserve at any time. We may suspend payouts to your bank account at any time for reasons including Stripe's assessment of your financial condition or the financial condition of your business.Excerpt from Stripe's Terms of Service
REGULATORY LANDSCAPE: Reserve and payout withholding provisions in payment processing agreements may engage state commercial law obligations regarding prompt payment and fund disbursement timelines, as well as applicable money transmission licensing requirements in US states …
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
Search "[your state] attorney general consumer complaint" to find your state's direct complaint form
Get the research letter
Companies change their terms quietly. We read every version and catch what actually changed. One email a week on the changes that matter and what they mean.
The terms authorize Stripe to withhold funds from your business account based on its own risk determination, with the ability to modify the reserve amount at any time, which can create immediate cash flow disruptions for businesses dependent on Stripe payouts.
This provision authorizes Stripe to hold funds earned by a business, delay settlement, or suspend payouts to the business's bank account based on Stripe's internal risk assessment, potentially affecting the business's access to revenue without a fixed timeline for release.
ConductAtlas has identified this type of provision across 231 platforms. See the full comparison.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Stripe.