Why not to use 'Instant Payouts'

Edited

Overview

Stripe offers an "Instant Payout" feature that allows you to transfer available funds to your bank account immediately. While this may seem convenient, we recommend against using this feature due to important reconciliation and reporting considerations.


Why We Advise Against Instant Payouts

While instant payouts offer quick access to funds, they come with several drawbacks:

  • Disrupted Grouping: Stripe naturally groups payments and refunds together into a single scheduled payout. This makes it clear which transactions are associated with each payout.

  • Reconciliation Challenges: Instant payouts withdraw your available balance without clearly indicating which payments or refunds are included. This complicates manual and automated reconciliation.

  • Automation Impact: Our automated reconciliation tools rely on Stripe’s standard payout logic. Using instant payouts bypasses this process, leading to discrepancies and potentially more manual work.


Recommendation

To ensure clean reporting and reconciliation, we strongly recommend allowing Stripe to handle payouts automatically. This ensures each payout is logically grouped and fully supported by our reconciliation systems.

If you have further questions or need assistance with payout configurations, please contact our support team.

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