Paddle froze my account – migrated to Dodo Payments in 48 hours

2 gostudio_ai 1 8/10/2025, 7:41:40 PM gostudio.ai ↗

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gostudio_ai · 2h ago
I run a small SaaS, GoStudio.ai, selling AI-generated headshots globally.

Last month, Paddle froze my account during a quarterly review, citing a KYC mismatch (my legal name didn’t match their records). They told me payouts would resume after 180 days.

For 48 hours, my checkout was down. As a temporary fix, I added a PayPal link and manually credited accounts. In parallel, I: - Contacted Paddle support and my network to escalate - Reached out to alternate providers like Dodo Payments and Polar.sh - Completed onboarding and verification with Dodo Payments - Integrated Dodo’s payments API and tested payment flows - Managed two PayPal transactions manually

Within a week: - Payments running again via Dodo Payments - Payout released from Paddle - Helpful conversations with both Paddle and Dodo teams

Lessons learned: - Keep a backup payment processor partially integrated - Understand payout hold policies before onboarding - Build payment integration layers so swapping providers takes days, not weeks

It was two days without sleep, but I now have a contingency plan for future incidents.

Anyone else got banned on Paddle recently?