What happens if my payout balance is negative?
Last updated October 23, 2025
When you issue refunds or take off-platform orders , the balance in your Payout tab may go negative.
If your payout balance goes negative (below $0), here is what you need to know:
- Depending on Stripe's internal assessment of your business, they may withdraw funds from your default payout account to settle the negative balance. This can occur anywhere from 1-7 days after the moment it goes negative.
- Stripe does this to ensure that pending refunds can be fulfilled quickly, which reduces the risk of customer disputes and prevents your account from being flagged.
- Because of this, we recommend that you keep dollars in your bank account to cover the negative balance.
- ⚠️ Note, if Stripe tries to withdraw while your bank account balance is $0.00, you may incur overdraft fees.
- For more details, read Stripe's Documentation here .
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