Tagada
Payments · Skincare4 min readUpdated October 26, 2026

Why Stripe Closed Your Skincare Brand Account (and What to Do Next)

Why Stripe closes skincare brand accounts, the 120-day payout pause, how to appeal, export your customers' cards, and keep selling.

Nick Bonnassies, CMO at Tagada · checked against 10 sources

Article summary

TL;DR

Stripe doesn't ban skincare, so a closure usually comes from claims that read like a drug ("removes wrinkles", "treats acne"), a "risk-free" trial funnel, before-and-after promises, or rising disputes. On unacceptable risk, Stripe typically pauses payouts for 120 days, then reviews the balance. Act fast: read the notice, appeal with evidence, request your card export and move payments to a processor that reviews skincare first.

  • Stripe "will typically restrict or pause payouts to the User's bank account for 120 days" from its first email.
  • After 120 days, Stripe releases all or part of the balance, keeps holding it, or cancels the payout.
  • You can appeal through the Dashboard, and appeal again if the first fails.
  • Stripe exports saved cards only to a PCI DSS Level 1 processor, without subscriptions or Link cards.
  • Products to "remove wrinkles or increase the skin's production of collagen" are drugs or devices under FDA guidance.
Want to go further? AskChatGPTClaudePerplexityGrok
On this page

This guide is part of our hub on skincare payment processing. Stripe's policy: does Stripe allow skincare products? The general guide, for any business: merchant account closed and funds held.

Why Stripe closes skincare accounts

CauseStripe's lineWhat it looks like
Drug-like claims"Not safe or make harmful claims"2Stripe, Restricted and prohibited businesses, updated September 22, 2026"Removes wrinkles", "treats acne"6FDA, Is It a Cosmetic, a Drug, or Both? (Or Is It Soap?), September 11, 20247FDA, Wrinkle Treatments and Other Anti-aging Products, February 25, 2022
Trial funnels"Reduced price trials with unclear or hidden pricing"2Stripe, Restricted and prohibited businesses, updated September 22, 2026"Risk-free" cream for shipping, then monthly
Testimonials and photos"Deceptive testimonials"2Stripe, Restricted and prohibited businesses, updated September 22, 2026Atypical before-and-after without disclosure916 CFR 255.2(b), Consumer endorsements
Upsell chains"High-pressure upselling"2Stripe, Restricted and prohibited businesses, updated September 22, 2026Countdown offers after checkout
DisputesUnacceptable risk1Stripe, Unacceptable Risk Policy, last updated July 29, 2026; Visa's 1.5% line8Visa, Acquirer Monitoring Program fact sheet, 2025 v2A spike after a promotion

Stripe's agreement also lets it "close User's Stripe Account at any time"3Stripe Services Agreement, last modified September 28, 2026, section 10.1.

What happens to your money

StageWhat Stripe doesSource
Day 0Email; charges and payouts restricted or paused; closure may start1Stripe, Unacceptable Risk Policy, last updated July 29, 2026
Days 0 to 120Payouts typically paused; balance covers refunds and disputes1Stripe, Unacceptable Risk Policy, last updated July 29, 2026
Day 120Formal review: release, keep holding, or cancel the payout1Stripe, Unacceptable Risk Policy, last updated July 29, 2026
ReservesCan also apply, "in some rare cases" indefinitely5Stripe Support, Reserves: frequently asked questions, read October 26, 2026

Fig. 1From Stripe's first email to the day 120 review

  1. Day 0Email; charges and payouts restricted or paused
  2. Days 0 to 120Balance covers refunds and disputes
  3. Day 120Formal review of the balance

The pause runs from the first email, not from the closure.

Stripe, Unacceptable Risk Policy, last updated July 29, 2026.

Fig. 2Three possible outcomes at day 120

Stripe's formal reviewDay 120
  1. ReleasedAll or part of the balance is paid out
  2. Still heldStripe keeps holding the balance
  3. CancelledThe payout is cancelled
Stripe, Unacceptable Risk Policy, last updated July 29, 2026.

Watch out

Refunds and disputes during the pause come out of the held balance1Stripe, Unacceptable Risk Policy, last updated July 29, 2026. Plan cash without it: payout timing for skincare brands.

The first 72 hours

Fig. 3The first 72 hours, as they usually land

What to do in the first 72 hours

  1. Read the notice in your email and Dashboard1Stripe, Unacceptable Risk Policy, last updated July 29, 2026.
  2. Request the card export to your next processor, which must be PCI DSS Level 14Stripe Docs, Request a payment data export, read October 26, 2026.
  3. Export subscriptions, plans and next charge dates yourself; Stripe doesn't4Stripe Docs, Request a payment data export, read October 26, 2026.
  4. Fix the likely cause: claims, trial terms, visuals, upsells, creator pages.
  5. Apply to a processor that underwrites skincare before processing.
  1. StripeDay 0Payouts pausedCharges and payouts are restricted while your account is reviewed.
  2. StripeDay 1Appeal receivedSubmitted through your Dashboard.
  3. StripeDay 2Payment data export requestedSaved cards go to your PCI DSS Level 1 processor.
Illustrative example.

Appeal: what to send

SendWhy
Company documents and owner IDA real, identifiable business
Labels, claims list and safety recordsAnswers the harmful claims line2Stripe, Restricted and prohibited businesses, updated September 22, 20266FDA, Is It a Cosmetic, a Drug, or Both? (Or Is It Soap?), September 11, 2024
Before-and-after with how results were obtainedShows typical results916 CFR 255.2(b), Consumer endorsements
Checkout and subscription screenshotsClear pricing and cancellation
Dispute and refund historyRisk under control
What you changedCause fixed

Keep selling

OptionNote
Underwritten merchant accountReserve likely: get approved
On Shopify, a third-party card processorOne at a time10Shopify Help Center, Configuring third-party payment providers, read October 26, 2026
PayPal as an extra methodPayPal and Square
Two processors with routingPayment routing for skincare brands

Moving subscribers: switching payment processor.

Don't do this

  1. Don't open another Stripe account

    For the same business under another name.

  2. Don't split volume

    To stay under thresholds: Stripe prohibits evading chargeback monitoring2Stripe, Restricted and prohibited businesses, updated September 22, 2026.

  3. Don't keep the same claims

    On the new processor.

Tagada follows Visa and Mastercard rules and the laws that apply to payments.

How Tagada helps

After a Stripe closure: an underwritten account and routing

  • TagadaPay underwrites each file, with enhanced review on regulated verticals
  • Routing across Stripe, Adyen and TagadaPay with one logic, cascade on decline
  • Subscriptions with trials, billing cycles, retries and automatic recovery
  • Checkout standalone, on Shopify, on WooCommerce or headless

Plans are on the pricing page.

Apply for processing
After a Stripe closure: an underwritten account and routing

Updated on October 26, 2026

Nick Bonnassies

CMO at Tagada

CMO at Tagada. Before Tagada, Nick built direct-to-consumer brands that generated over $115M in sales, raised over $25M in crowdfunding and sold two of them. He also works as a fractional CMO on marketing operations and AI systems.

Frequently asked questions

Why did Stripe close my skincare brand's account?

Usually drug-like claims, an unclear trial, deceptive testimonials or upsells, or disputes. Check what changed recently in your claims, visuals, offers and creator content.

How long will Stripe hold my skincare store's funds?

On unacceptable risk, Stripe typically pauses payouts for 120 days from its first email, then reviews the balance. A separate reserve can last longer.

Can I appeal a Stripe closure?

In certain circumstances: Stripe explains how and when in its notice, usually via the Dashboard, and a second appeal may be possible. Send documents, claim and safety evidence, and what you fixed.

How do I keep my skincare subscribers after a closure?

Request the card export to a PCI DSS Level 1 processor, rebuild subscriptions from your own records, and test charges before renewals run. Link cards aren't exported.

Sources

Checked October 26, 2026
  1. Stripe, Unacceptable Risk Policy, last updated July 29, 2026
  2. Stripe, Restricted and prohibited businesses, updated September 22, 2026
  3. Stripe Services Agreement, last modified September 28, 2026, section 10.1
  4. Stripe Docs, Request a payment data export, read October 26, 2026
  5. Stripe Support, Reserves: frequently asked questions, read October 26, 2026
  6. FDA, Is It a Cosmetic, a Drug, or Both? (Or Is It Soap?), September 11, 2024
  7. FDA, Wrinkle Treatments and Other Anti-aging Products, February 25, 2022
  8. Visa, Acquirer Monitoring Program fact sheet, 2025 v2
  9. 16 CFR 255.2(b), Consumer endorsements
  10. Shopify Help Center, Configuring third-party payment providers, read October 26, 2026

TagadaPay

Stripe closed your skincare account? Keep selling

Tell us what you sell and how you sell it. Each application is underwritten, and approval is not guaranteed.

Apply for processingSee pricing
  1. 01Tell us what you sell and how
  2. 02Underwriting reviews your business
  3. 03Process through TagadaPay alongside your other processors