Luxury Payments, Frozen Funds: Rescuing $30K for a Designer Brand
Company
Product
Stage
Processor
Beauline Beauty
Clothing
Active Sales, Moderate Volume
Stripe
Challenge
The client operated an online store offering high-end, one-of-a-kind products with a low transaction volume but high average order value (AOV), often between $5,000 and $30,000. While this model was profitable, it did not align well with Stripe’s standard risk profile.
After processing a $30,000 transaction, Stripe froze the account and held the funds—despite prior verbal assurances of approval from their support team. The situation quickly escalated into a cash flow crisis, with no clear pathway to resolution.
Our preliminary review identified several contributing factors:
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Website lacked key compliance elements, such as refund, shipping, and privacy policies
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No formal business documentation or risk narrative submitted to Stripe
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High-ticket transaction pattern incompatible with Stripe’s preferred merchant profile
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Overdependence on a single payment processor
Our Approach
We executed a targeted remediation plan to address both compliance weaknesses and processor misalignment, ensuring the client's infrastructure was suitable for sustained high-ticket operations.
Key Actions Taken:
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Compliance Overhaul:
Rebuilt and updated the client’s website to meet industry-standard requirements, including all relevant legal disclosures, trust indicators, and operational policies.
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Business Documentation:
Created a tailored business plan and risk narrative outlining transaction flows, supplier relationships, fulfillment timelines, and revenue forecasts.
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Processor Realignment:
Submitted the revised documentation to Stripe and simultaneously onboarded the client with a processor better equipped for high-ticket, low-volume models.
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Diversification Strategy:
Advised and implemented a multi-processor setup to mitigate the risk of account freezes or dependency on any single platform.
Outcome
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Funds successfully released from Stripe
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New processor established with terms suited to high-ticket sales
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Website fully compliant with processor and card network requirements
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Operational risk reduced through platform diversification
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Stronger merchant profile presented across all payment relationships This case demonstrated how platform misalignment and overlooked compliance details can disrupt even well-intentioned operations. By addressing both structural and strategic gaps, we helped the client regain access to funds and establish a payment foundation built for scale and sustainability.
