The ombudsman reads ledgers too.

Who can complain

• Micro-enterprises: fewer than 10 employees and annual turnover or balance sheet of no more than €2 million.¹
• Small businesses: annual turnover under £6.5 million and either a balance sheet under £5 million or fewer than 50 employees, for things that happened on or after 1 April 2019.¹

Source [1]

The time limits

1. Step 1

   Complain to the processor first

   In writing, using the word “complaint”. The UK letter does this.

2. 15 business days or 8 weeks

   Wait for the final response

   For complaints about payment services and e-money, which can include a processor holding your balance, the firm has 15 business days (up to 35 in exceptional circumstances, if it sends a holding reply explaining why). For most other complaints it has 8 weeks.³

3. Within 6 months

   Refer it to the ombudsman

   After a final response you disagree with, or once the deadline passes with none, and within 6 months of the date on the final response. You also usually need to have complained to the firm within 6 years of the problem, or 3 years of when you knew about it.²

Source [2] [3]

Two Stripe decisions

DRN-6072193 (Stripe Payments UK Ltd)

The ombudsman treated holding funds for 120 days from closure as reasonably standard, but found Stripe had not justified holding them beyond 19 June 2025. It directed 8% simple interest a year from 19 June 2025 to 1 December 2025, and £250 compensation. Read the decision (PDF).

DRN-5641123 (a sole trader)

The ombudsman directed 8% simple interest for the period funds were held beyond 120 days, and £100 compensation. Read the decision (PDF).

And one PayPal decision

DRN1898614 (PayPal Europe Sarl & Cie, SCA)

PayPal closed a small business’s account on 25 February 2019 and released the remaining balance on 8 October 2019, around 225 days later. Its terms allowed it to hold funds for more than 180 days “if so required by PayPal”. The ombudsman found 180 days would be sufficient to protect against payment reversals, bearing in mind that chargebacks generally have to be raised within 120 days. PayPal declined to explain why it held the funds longer, so keeping them was unreasonable. It was told to pay 8% simple interest a year on the closing balance for the extra 45 days, and £150 compensation. Because of the rules then in force, the ombudsman could only look at what happened from 1 April 2019, not the closure itself. Read the decision (PDF).

Each decision turns on its own facts. They show the questions the ombudsman asks, not a guaranteed result.

What to put in the complaint

• The date of the first hold notice and the amount held.
• Your refund and dispute rates, from the evidence pack.
• What you want: release of the balance less chargebacks received, 8% simple interest beyond a reasonable hold, and an explanation of anything kept.

Write the UK complaint