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Stripe 120-day hold explained

Updated October 2026

When Stripe closes an account it often tells merchants the balance will be held for about 90 or 120 days. That number isn't random: it roughly matches how long customers can dispute card payments.

Why 120 days?

Card network rules let cardholders file most disputes up to about 120 days after the transaction (some reason codes, such as non-delivery, count from the expected delivery date). If Stripe paid out everything immediately and disputes arrived later, Stripe would carry the loss. The Stripe Services Agreement allows Stripe to hold funds or set a reserve to cover that exposure.

What happens during the hold

• Refunds and disputes are paid out of the held balance.
• You usually can't take new payments if the account is closed.
• At the end, Stripe releases what remains to your bank account on file. Keep that bank account open.

Can it get extended?

Yes. Merchants in our tracker report extensions when disputes keep arriving, or when goods were pre-ordered or shipped late (the clock can run from the delivery date). One reported case went 90 days, then a further 120.

How to shorten it, or at least not lengthen it

• Fulfill every open order and upload tracking.
• Answer customer emails fast and refund rather than let anything become a dispute.
• Respond to every dispute with evidence through the Dashboard.
• Ask support, politely and in writing, whether partial early release is possible once your dispute window has largely passed.
• If the hold seems unjustified, see how to appeal and your local complaint options in getting money back.

Real cases from the tracker

The latest Stripe freezes merchants have reported. Search all cases.

Where to go next

FAQ

Is the Stripe 120-day hold legal?

Stripe's Services Agreement, which you accepted, allows it to hold funds or set a reserve to cover refunds, disputes and other liabilities. Whether a specific hold is reasonable can be challenged through Stripe, and in some countries through a financial ombudsman or regulator.

Does the 120 days start from closure or from my last sale?

Stripe states the date in its notice. Merchant reports suggest it is usually tied to the closure or last charge, and it can be extended if disputes keep coming in.

Will I get all my money after 120 days?

You get the balance left after refunds, disputes and any fees owed are deducted.

Related guides

• Stripe account frozen: what to do first
• Stripe closed my account: how to get your money back
• Rolling reserves explained
• Chargeback ratio thresholds that trigger reviews