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.
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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.