The honest guide
Held funds, contracts and how to leave
The biggest worry business owners raise about any card provider isn't the rate — it's money being held, or being stuck in a contract they can't get out of. This page explains why it happens, how to make it less likely, and what to do if it happens to you.
By Carl Daniel, Business Genie Payments — authorised Teya partner
Why card providers hold funds
When a customer pays by card, the provider is on the hook if that payment is later disputed. If something looks out of the ordinary, providers can pause or keep back payouts while they check. The usual triggers are:
A sudden jump in takings
A big event, a busy season or one unusually large payment can trigger a risk review if the provider wasn't expecting it.
Paid now, delivered later
Deposits, advance bookings, gift vouchers and pre-orders carry more risk for the provider, because the customer can dispute the payment before they receive anything.
Chargebacks and refunds
A run of disputes or refunds tells the provider something may be wrong, so it may keep money back to cover them.
Missing or out-of-date paperwork
Identity checks, proof of address or business details that don't match the application can pause payouts until they're sorted.
Trading that doesn't match the application
Selling something different from what you described, or trading through a different business, can lead to a review.
How to make a hold less likely
- Describe your business and expected takings accurately when you apply — including seasonal peaks.
- Tell your provider before a big event, a new product line or anything that will change your volumes.
- Keep clear records of what you sold, when it was delivered and any refunds — they settle disputes quickly.
- Reply to any document request the same day if you can. Most reviews end once the paperwork is in.
- If you take deposits far in advance, say so up front rather than letting the provider find out.
If your money is being held
- Ask in writing why the money is being held, what they need from you and when they expect to release it.
- Send any documents asked for straight away, and keep copies of everything you send and receive.
- Use the provider's formal complaints process if it isn't resolved — ask for a final response in writing.
- If you're unhappy with the final response, or eight weeks have passed, most micro and small businesses can take the complaint to the Financial Ombudsman Service, which is free.
Check whether your business can use the ombudsman on the Financial Ombudsman Service website.
What to check in any card machine contract
- Is the terminal on a separate lease from the card processing? Each can have its own length and exit fee.
- How long is the contract, and does it renew automatically if you don't give notice?
- What is the notice period, and how must notice be given?
- What does it cost to leave early — and is that a fixed fee or the rest of the contract?
- Are there minimum monthly charges, PCI fees or account fees on top of the rate?
- Who owns the terminal at the end, and do you have to return it?
How to leave without missing a sale
- 1Find your contract end date and notice period — on your agreement or by asking your provider in writing.
- 2Give notice in writing and keep a copy. Note the date it was received.
- 3Get your new card machine set up and take a test payment before you stop using the old one.
- 4Download your transaction history and statements while you still have access.
- 5Return or keep the old terminal as your agreement says, and cancel direct debits only after the final statement is paid.
How we help
We set your Teya account up with the right details from day one, go through the agreement with you before you sign, and check your current contract so you know exactly when and how to leave. And you always have one person to ring: 07786 235 819.
Common questions
Does Teya hold funds?
Like every card provider regulated in the UK, Teya has to manage risk, and in some situations that can mean reviewing or holding payouts. The best protection is setting your account up accurately from the start — which is exactly what we help with — and telling Teya early about anything unusual.
What are Teya's contract terms?
Terms can depend on your business and the products you choose, so we don't publish a one-size answer. Before you sign, we'll go through the agreement with you and get anything unclear answered in writing.
Can you help if my current provider is holding my money?
We can't release funds held by another provider, but we can help you understand what's being asked for and how to complain properly. If you're moving to Teya, we'll plan the switch so you're not left without a way to take payments.
Is it worth switching if I'm mid-contract?
Sometimes. Use our fees calculator to see what you're paying now, then compare that with any early exit fee and a written Teya quote. If it doesn't add up, we'll tell you to wait.