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What are Payouts?
Payouts refers to the process by which funds collected through Encircle Payments are transferred from your Stripe account (which acts as a holding account) to your business's bank account.
When you collect a payment, it first sits in a Stripe holding account temporarily. After a specified number of days, the lump sum of these payments, minus any applicable fees, is then paid out to your business’ bank account.
This temporary holding period, referred to as the “payout period” by Stripe, is in place primarily to manage any immediate refunds or disputes that might occur. By holding the funds for a short period, Stripe ensures there is a sufficient balance in your account to cover such occurrences and prevent a negative balance, which could incur additional fees. This process ensures financial stability and risk management for transactions processed through the system.
*You have the option of proactively adding funds to your Stripe account in your Stripe Dashboard if you wish to take extra steps to avoid a negative balance.
Payout Schedule
All payments will arrive in your Stripe account, minus any fees, as soon as the payment has been processed. The payout period to your bank account depends on your region.
USA:
- The payout schedule is Transaction Date + 2 business days (T+2)
CANADA:
- The first ever payout after setting up your account takes 7 calendar days.
- After the initial payout, subsequent payouts follow a schedule of Transaction Date +3 business days (T+3)
Stripe will lump all payouts together into one transaction into your account. You can view the payout information in Encircle or in the Stripe Dashboard. By default, payouts happen daily. So for example, if you are a US customer, and you processed a payment 2 business days ago, it will be paid out to your bank account today.
More Information
For more in-depth information about payouts, refer to Stripe’s documentation.
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