We're in delayed fulfilment hence some additional risk (quite some time between selling the service and delivering the service) so I get it

1. They already hold 50% (!!!) of all our revenue in reserve for 90 days for the last months (currently a couple of MILLION USD)

2. We are already in the process of moving away from Stripe but they have until now never pulled something so low. The reserves are already massively hurting us, hence moving to an actual acquiring bank but now giving us 2 days in between Christmas and NY is just insane.

You didn’t actually answer op’s question. What reason did they give you? What part of the TOS did they say you are violating?

> They already hold 50% (!!!) of all our revenue in reserve for 90 days for the last months (currently a couple of MILLION USD)

So, over the last 90 days you've had $4M of revenue, or $1.3M per month. That's rather a lot less than 5-10M.

So was the answer “stripe think we’re committing fraud by charging for and not delivering goods because of this delay” or something else?

Nope, we're in travel and hospitality (so people book early and stay later) and they don't want to bear the refund risk with Covid-19.

Again, I'm not forcing Stripe to do business with us (even though we never had issues in 4 years and processed millions through them). I just want them to give us a bit more time than 48 hours to switch to another processor in between Christmas and NY.

I don't get it. Are you charging people before their stay? In most of my experiences with Booking.com or hotels themselves, I settle the bill (with my card) at the end of the stay.

Lots of hospitality businesses charge before the stay, like travel agencies. A company may need to reserve flights, book rooms and possibly set up tours and events, and all that stuff costs money upfront. If you don't have a lot of buffer (say, because Stripe is reserving half your funds) then you'll need to cover the costs in some other way.

If you only book a hotel then you'll probably get the option to pay upfront or settle afterwards, but if you buy an entire package deal from a third party comaonty then you usually get asked for some or all money upfront. These packages are often more expensive than going through the effort of finding a good deal yourself, or they're cheaper and rely on a lot of deals not falling through.

I wouldn't trust my customers to show up without at least a reservation on their account, especially now with new covid waves and potential anti covid measures threatening holiday fun.

Many hotel booking sites do charge at the time of booking, particularly when the booking is heavily discounted / non-refundable.

Booking.com, expedia etc. have options to pay in advance. They'll refund you later if you cancel. Some listings seem to have this as the only option? I didn't look recently.

the absolute best fares i got were always paying in full before the actual trip. i still do this today with covid.

Depends. Many sites offer non-refundable reservations for a cheaper rate. You pay when you book.

A lot of trips and stays are prepaid in exchange for a lower price.

booking.com always charges me before I fly. Same with agoda and another site I’ve used which name eludes me.

Never had the option to pay at the hotel upon arrival.

If you are using a Debit Card, the amount will be held. It looks like it’s charged (and maybe your bank doesn’t show that) but there is a difference from the seller side.

I don't believe that's true. Using a Credit Card funds can still be held and either released or taken at a later date. This usually happens with you rent a car and they need a security deposit.

What I don't understand tho is /why/ a merchant will often accept a credit card but not a debit credit card. While there's differences in fruad protection and refunding, the main difference is debit credit card draws on funds you have while credit card supplies a line of credit to re-pay at a later date.

I don’t get it. You’re a payment provider that is in fact just a wrapper around another payment provider?