Your Payment Provider Is Holding Your Funds: What to Do

• A risk review triggered by a sudden rise in volume, larger payments than usual or a new product.
• A rising chargeback or refund rate.
• Missing or outdated documents in a periodic review of your business.
• Delivery far in the future, such as pre-orders, travel or events.
• The account has been closed, and the provider keeps money back until the dispute window has passed.

A hold for a review can end within days once the provider has what it needs. A hold after an account is closed usually lasts much longer, because cardholders can dispute a payment up to 120 days after it, and up to 540 days when the goods or service come later. Many providers therefore keep a share of the money for several months after the last payment, and release it in steps.

• Ask in writing why the funds are held, how much is held and the date or condition for release.
• Check your contract for the clauses on reserves, holds and termination.
• Send any documents or explanations the provider asks for in one complete reply.
• Explain any change that triggered the review, such as a campaign, a new product or a large order, with evidence.
• Ask whether part of the money can be released now, with the rest held as a reserve.

Send a formal written complaint. In the EU, payment service providers must answer a written complaint within 15 business days, or 35 in exceptional cases, and that applies to business customers too. In the UK, smaller businesses can take an unresolved complaint to the Financial Ombudsman Service. Keep a record of every message and date.

A hold on old money and the ability to take new payments are two separate problems. If your account is restricted or closed, set up a second payment provider straight away so sales do not stop while the old funds are released. Be open with the new provider about the hold and the reason for it: it will see it anyway, and an honest explanation weighs far less than a surprise.

Ecompayer is not a payment provider and cannot release money held by another provider. What we can do is match you with a payment provider that accepts your business, so you can keep taking payments while the old funds are released.

• Add your business, volumes and the reason for the hold once.
• We match you with a provider that accepts your profile.
• Your account is prepared so you can keep taking payments.