Just for context. We are in fashion industry. Selling handcrafted pieces online. We have been in business for 2 years, using Stripe as our primary method for Apply pay, as it is a comfortable payment method for clients.
Recently, last week we have become viral and our sales sky-rocketed, piling up hundreds of orders and about 100k in account. 4 days later, our account payout is frozen by Stripe. All payout blocked. No notice. Nothing.
Bear in mind our businesss is legitimate and all clients are legitimate.
We reach out to Stripe through chat and we are responded by the template responses. That it is under review and that they can take 24-48 hours.
We then ask to speak to a Manager, and after a hassle and going forth and and back a nanager calls after 2 hours, who doesnt even want to state his full name, only his First name, which we dont even know if its true, and then wheh we insisted he said he cant say their full name.
He then says that he will review the account and then come back with follow up on email, and nothing happens in the 48 hours elapsed, so ..
We contact stripe again through chat and aftwr a round of another hour we ask to speak to the Manager,
3 hours later, another lady calls, which also just states only her first Name, and gives us the same useless pretext that the account is under review and that someone is looking into it and that she escalated our case, but now she says that the timeline is 2-3 business days is the general period, but it can take more than that in extensive cases.
Here i get frustrated, and ask her, you are withholding our money, our clients money, on what terms? What us under review? We are legitimate. Clients are legitimate. She respons that she can not tell me that right now, it is not in her power, and that she can not tell me a maximum deadline.
If it takes longer it will affect our brand identity since it financially blocks us.
Now, I would like to know and am open to suggestions on what to do next.
Lawsuit? Go to the news and make them public for this scrutiny? Is it legal what they are doing? Is there a contact on HN that can solve this over Stripe please?
I read some old reviews and some comments stated that there are quite some contacts from Stripe here, so i thought to give it a chance.
DamonHD•1d ago
At this stage with an unusual flow of money of that order into your account Stripe is likely obliged to consider Anti Money Laundering and similar investigations for a start, and delay to handing on the cash is likely its main risk reduction tool at this moment.
zenkoakishaga•1d ago
Alright. While I understand that, a quick or even complex review would show that our business is legitimate, clients legitimate in 1-2 hours tops if we are being honest, but its already breaking our cashflow and we are 3 days in with our account blocked.
Is there anything we can do to urgent this matter and unblock our account?, we really need to honour our hundreds of orders at a timely manner. This affects our image.
naishoya•1d ago
Inform them that you will be expediting the shipment of these orders in the sequence which they were received as this is the only fair way to prioritize orders, instead of the 'larger' orders or 'more profitable' orders having priority.
Offer to cancel and refund any orders where the customer is not satisfied with this response to the delay which is out of your control. These customers will in the end be more difficulty than they are worth, and trimming them out of the production line ASAP will expedite those who are understanding and patient.
Be sure not to 'blame' your processing handler, this delay is simply standard due diligence against international money laundering and other nefarious situations. No amount of assurance from you that it is legal and lean absolves them of the requirement to confirm these facts independently. Stripe's compliance and legal department is doing exactly what they must do, it will take whatever time it takes to resolve, and if you truly are verifiable and above board this delay will quickly resolve.
The communication with customers will strengthen your relationship with the fraction of them who are good, steady, and likely to become both repeat customers and good referrals.
Even the ones who choose not to wait a bit for your best quality goods, will be able to tell people that you communicated clearly and gave them the opportunity to walk back their purchase with no hassle.
And in a few days time, you can get to work filling the sudden orders. I advise not withdrawing those funds all at once, or spooling up the scale of production as this will lead to quality control issues.
Take your time, work down the orders with the very process that made you become a viral success, and deliver your best quality with updates and clear communication. Turn this from a one time rush of massive orders into a steady, reliable, continual slope of growth building into a trusted provider of fine handmade products.
Withdraw those funds in small stages, only as much as is necessary to purchase materials and pay workers for productive time; no sudden raises or advances against work not finished. Take any 'earnings' only after all non-cancelled orders are shipped and delivered.
/large_market_advice