What is a payout reversal?
In cases where funds have been paid to the wrong bank account, a Custom or Express platform can request the payout to be reversed. A payout reversal is the action of reversing a single payout for the entire amount from the connected bank account back to the connected account balance.
Learn more about payout reversals for Custom or Express connect platforms in Stripe Docs.
Frequently asked questions about payout reversals:
Q: Where are payout reversals supported today?
A: Payout reversals are only supported for US bank accounts. Reversals of instant payouts are not supported.
Q: Who has access to perform a payout reversal?
A: Custom or Express connect platforms can request a payout reversal on behalf of their connected accounts.
Q: Which team members have access to this feature?
A: Dashboard team members with the role Support Specialist, Analyst, Developer, Admin, or Owner can initiate a payout reversal.
Q: When can I request a payout reversal?
A: You can request a payout reversal up to 90 days after a payout has been submitted.
Q: Can I do a partial reversal for some of the payout amount?
A: No, you can only reverse the entire payout one time.
Q: The payout reversal failed—can I request another?
A: No, only one payout reversal attempt is supported.
Q: Once I initiate the reversal, how long will the debit take to be scheduled?
A: The payout reversal will be scheduled to be debited from the connected account bank account within one business day.
Q: How long will it take for funds from a successful reversal to reflect on the connected account’s balance?
A: The funds will be available to pay out again five business days after the reversal is requested.
Q: Why can’t I click the ‘Reverse payout...’ button?
A: Some common reasons the ‘Reverse payout...’ button is no longer available can include:
The connected account is not located in the United States.
The connected account currency is not USD.
The payout is not a standard payout.
The payout happened more than 90 days ago.
The payout has already been reversed.
Q: The payout has not yet been submitted and the cancel button is still present—can I still reverse the payout?
A: If you cancel a payout while the cancel button is still present, we will not submit the payout and you will not need to initiate a payout reversal.
FAQs
A: You can request a payout reversal up to 90 days after a payout has been submitted. Q: Can I do a partial reversal for some of the payout amount? A: No, you can only reverse the entire payout one time.
How do I force payout Stripe? ›
- Log into the Stripe Dashboard and go to the Payouts tab of the Balances page.
- Click Pay out funds instantly.
- Enter an amount to pay out.
- Select the debit card or bank account where you want the funds to go. ...
- Click Pay out button to complete your Instant Payout.
The National Automated Clearing House Association (NACHA) rules state that reversals can occur within 5 business days.
Why does my Stripe payout go to the wrong bank account? ›
My payout was sent to the wrong bank account
If you haven't received a payment, it's possible the bank details were entered incorrectly (either a typo or not the account you thought it would go to). Go to the Settings page of the Dashboard, select Business Settings, and correct your bank details if necessary.
How to reverse a payment on Stripe? ›
Cancel a payment
- Find the payment you want to cancel in the Payments page.
- Click the overflow menu ( ) to the right of the payment, then select Cancel payment.
- Select a reason for canceling, and click Yes. If you select Other, you must add a note that explains the reason for canceling the payment.
When the platform is responsible for risk and negative balances, you can make a payout reversal from an external bank account back to the connected account's balance. You can make payout reversals from the Dashboard payout details page or by calling reverse payout.
Why are my Stripe payouts failing? ›
The vast majority of failed payouts are from incorrect bank details. See how to update your payout details.
What is a payout reversal? ›
What is a payout reversal? In cases where funds have been paid to the wrong bank account, a Custom or Express platform can request the payout to be reversed. A payout reversal is the action of reversing a single payout for the entire amount from the connected bank account back to the connected account balance.
What is the difference between refund and reversal on Stripe? ›
A reversal can occur if a refund is submitted soon after the original charge. This means the original charge will drop off the bank statement as if it never occurred, and the bank account balance adjusts to credit that money back without a specific line item on the statement.
Why does Stripe take 7 days to payout? ›
There is a 7 day waiting period for the first payout. This delay is necessary for risk mitigation and cannot be waived under any circ*mstances. Any updates made to payout timing or method during this time will take effect after the waiting period. Check your estimated payout schedule at the Dashboard.
You can cancel a previously created payout if its status is pending . Stripe refunds the funds to your available balance.
Why is Stripe holding my money? ›
Customer refunds and chargebacks are pulled directly from the business's reserved balance. Stripe holds these funds to protect end customers from unexpected settlement difficulties to ensure our users can continue to accept payments with Stripe.
How do I update my payout on Stripe? ›
You can update your account details or add a new bank account using the Payout settings in the Dashboard. Based on your bank's location, Stripe might require different kinds of account details to activate your bank account. To modify your banking information, click the Edit button next to the desired bank account.
How do I get my payment reversed? ›
If either a consumer or a vendor notices something is wrong with the payment, they can contact the bank to stop the transaction going through. This is typically the payment reversal type which involves the least hassle for both customers and businesses.
How to get money back from Stripe? ›
Stripe is unable to issue refunds on behalf of businesses using Stripe to accept payments. To initiate an exchange or refund, customers will need to reach out to the business directly. Through the charge lookup tool you can find which business charged you.
How long does a reversal transaction take? ›
Settlement can take between one and five days. Chargeback reversals will be longer again, especially if the merchant disputes the claim. Although disputes can take weeks, even months to resolve, a customer may expect their bank or card issuer to provide the refund while the dispute is ongoing.
How to do manual payout Stripe? ›
If you turn off automatic payouts in the Dashboard, you must manually send funds to your bank account. You can do this either in the Payouts section of the Dashboard or by creating payouts using the API. Automatic and manual payout settings does not mean your payouts will arrive the next day.
How do I request a payout on Stripe? ›
Instant Payouts allow you to transfer funds to an eligible debit card or bank account… Log into the Stripe Dashboard and go to the Payouts tab of the Balances page Click Pay out funds instantly Enter an amount to pay out Select the debit…
How do I manually process payments on Stripe? ›
In your virtual terminal, manually enter the customer's credit card information and the amount to be charged. For Stripe, this is done in the Payments section of the Dashboard, by clicking “+Create” and then “Payment”. Once you've entered the necessary information, you can submit the payment for processing.
Can you speed up Stripe payout? ›
With accelerated payout speeds, funds are available within 3 business days. Users become eligible for accelerated payout speeds after meeting certain criteria based on risk and history with Stripe.
