Stripe Reserve After Chargebacks: What to Expect & How to Remove

Stripe implements reserves when your dispute rate exceeds thresholds or fraud concerns arise. Reserves hold 10-100% of transactions for 90-180 days. Removal requires sustained metric improvement.

What a Stripe Reserve Is

Definition:

Stripe holds a percentage of each transaction
Held funds cover potential dispute losses
Released after hold period (90-180 days typical)
Can be rolling (ongoing) or fixed-term

Purpose: Protect Stripe and card networks from losses if you have high disputes or fraud.

Reserve Amounts

Typical Reserve Percentages

Low risk (10-20%):

Dispute rate: 0.75-1.0%
First-time reserve
Quick response to Stripe
Strong account history

Medium risk (20-40%):

Dispute rate: 1.0-1.5%
Multiple policy concerns
Moderate fraud rate
Some account history issues

High risk (40-100%):

Dispute rate: greater than 1.5%
High fraud rate (greater than 0.75%)
Severe policy violations
Account termination pending

Reserve Duration

Standard: 90-180 days from implementation

Rolling reserve:

Percentage held from each transaction
Released X days later (e.g., 90 days)
Ongoing as long as reserve is active

Fixed-term reserve:

Percentage held for specific period
All funds released at end
Less common

Why Stripe Implemented Your Reserve

Primary triggers:

Elevated dispute rate (greater than 1.0%)
High fraud rate (greater than 0.5%)
Rapid dispute velocity (multiple in short time)
Business model risk (high-risk industry)
Policy violations (ToS breaches)

Check Stripe email: They usually explain the specific reason.

How Reserves Work

Example: 30% Rolling Reserve, 90 Days

Transaction on Jan 1:

Customer pays: $100
You receive immediately: $70
Stripe holds: $30
Released on: April 1 (90 days later)

Transaction on Jan 2:

Customer pays: $100
You receive immediately: $70
Stripe holds: $30
Released on: April 2

Ongoing: Every transaction has 30% held for 90 days

Impact on Cash Flow

Example business:

Monthly revenue: $50,000
30% reserve: $15,000 held monthly
After 90 days: $45,000 total held
Cash flow impact: Significant working capital reduction

How to Remove or Reduce Reserve

1. Improve Dispute Rate

Target: Below 0.75% (safe zone)

Actions:

Refund all weak disputes immediately
Proactive refunding before disputes
Fix root causes (shipping, billing, support)
Implement fraud prevention (3DS, AVS, CVV)

Timeline: 60-90 days of sustained improvement

2. Reduce Fraud Rate

Target: Below 0.4% (safe zone)

Actions:

Implement 3D Secure for all transactions
Enhanced fraud screening (Stripe Radar)
Manual review for high-risk orders
Block high-risk countries/IPs if needed

Timeline: 30-60 days of sustained improvement

3. Demonstrate Stability

What Stripe wants to see:

60+ days of low dispute rate (less than 0.75%)
Zero new policy violations
Consistent transaction patterns (no sudden spikes)
Good customer service (low complaint rate)
Proactive communication with Stripe

4. Request Reserve Reduction

When to request:

After 60+ days of improved metrics
Dispute rate below 0.75%
Fraud rate below 0.4%
No new disputes for 30+ days

How to request:

Subject: Request for Reserve Reduction - [Business Name] - [Account ID]

Dear Stripe Risk Team,

I am writing to request a review of the reserve on my account. Since the reserve was implemented [X] days ago, I have:

Metric Improvements:

Dispute rate: [Previous %] → [Current %] (target: less than 0.75%)

Fraud rate: [Previous %] → [Current %] (target: less than 0.4%)

Days without new disputes: [X] days

Actions Taken:

Implemented 3D Secure for all transactions

Enhanced fraud prevention (AVS, CVV, manual review)

Improved customer communication and support

Fixed fulfillment issues (shipping delays)

Proactive refunding to prevent disputes

Request: Please review my account for reserve reduction or removal. I am committed to maintaining these improved metrics.

Thank you for your consideration.

[Your Name]

Reserve Removal Timeline

Best Case (60-90 Days)

Month 1:

Immediate metric improvement
Zero new disputes
Proactive refunding

Month 2:

Sustained low dispute rate (less than 0.75%)
Request reserve review
Stripe evaluates

Month 3:

Reserve reduced or removed
Typical: 60-90 days total

Average Case (90-180 Days)

Month 1-2:

Gradual metric improvement
Some disputes still resolving
Ongoing communication with Stripe

Month 3-4:

Metrics stabilized
Request reserve review

Month 5-6:

Reserve reduced or removed
Typical: 120-180 days total

Worst Case (180+ Days or Permanent)

Scenarios:

Metrics don’t improve
New disputes continue
Fraud concerns persist
Business model deemed high-risk

Result: Reserve remains or account terminated

Living with a Reserve

Cash Flow Management

Strategies:

Reduce expenses to match reduced cash flow
Alternative funding (loan, line of credit, investors)
Increase prices to offset reserve impact
Reduce volume until reserve is removed
Payment terms with suppliers (extend to 60-90 days)

Business Operations

Adjustments:

Slower growth due to cash constraints
Focus on quality over volume (reduce disputes)
Improve margins to offset reserve cost
Alternative payment methods (PayPal, bank transfer)

Clear Verdict

Stripe reserves typically:

Amount: 10-100% of transactions (average: 20-40%)
Duration: 90-180 days minimum
Removal: Requires 60-90 days of improved metrics

To remove reserve faster:

✅ Improve dispute rate below 0.75%
✅ Reduce fraud rate below 0.4%
✅ Maintain stability for 60+ days
✅ Communicate with Stripe proactively
✅ Request review once metrics improve

Be patient - removal takes 3-6 months typically.

Assess Your Dispute Risk (30 seconds)

Related guides: Funds Held How Long • Account Frozen • 1.4% Chargeback Rate • When NOT to Fight