Are you an e-commerce store owner looking for options to receive payments? If so, you may have come across Stripe as a possible solution. But what exactly is Stripe, and how long does it take to pay?
What Is Stripe?
There are many ways customers can send money, but many of them have limitations—for example, a shopper may have hit their maximum Afterpay account limit and need another way to pay. Stripe is a popular payment processing platform that helps businesses of all sizes accept and manage online payments. It offers a simple, flexible way to take payments online and is used by many businesses, from small startups to large enterprises.
When a customer wants to pay for goods or services online, they enter their payment information into a form on the business’s website. This information is then sent to Stripe, which will process the payment and transfer the funds to the business’s bank account. Stripe also offers in-person terminals for businesses that want to accept payments in person, as well as a mobile app for businesses that need to take payments on the go.
If you decide to use Stripe as your payment processor, make sure you set up Stripe accounting integrations to keep your sales data in one place.
How Long Does Stripe Take To Pay?
One of the great things about getting paid with Stripe is that payments are transferred to your bank account very quickly. In most cases, you’ll receive your funds within three days.
To understand this better, you need to understand ‘Payout Speed’ and ‘Payout Schedule.’ Both of these refer to different aspects that affect how long it takes for you to receive your funds.
- Payout Speed: This refers to the time it takes for payments to be transferred from your customers’ bank accounts to your Stripe account. This is variable, depending on the country you live in. For example, if you’re based in Malaysia, it will take seven days for payments to clear. In the United States, it typically takes two days.
- Payout Schedule: This is the day of the week when Stripe will transfer your payments to your bank account. The schedule is based on when the payment was made and can be daily, weekly, or monthly.
Let’s put both of these together to understand how they affect the time it takes for you to receive your payments. Suppose you’re based in the United States and you’ve just received a payment from a customer – the funds will usually be transferred to your Stripe account within two days. From there, they’ll be transferred to your bank account on the next scheduled payout.
Another important difference between Payout Speed and Payout Schedule is that the latter can be adjusted by you. In most supported countries, the Payout Schedule is set to daily automatic by default, but you can change it to weekly or monthly automatic, and even specify the week or date that you want to receive your payments on. You also have the option to disable automatic payments and manually request a payout whenever you want.
How Long Does Stripe Take To Pay High-Risk Businesses?
Unlike regular businesses, Stripe takes a bit longer – fourteen days – to pay high-risk businesses. This is because these businesses are more likely to experience chargebacks, which are when a customer disputes a charge and asks their bank to reverse it.
To protect itself from fraud, Stripe holds onto the funds from high-risk businesses for a bit longer until the transaction is complete and the funds are settled. This way, if there’s a chargeback, Stripe can cover itself from any losses.
While this may sound like a hassle, it’s actually a good thing for high-risk businesses as it shows that Stripe is willing to work with them to provide the services they need. Some industries that are considered high-risk by Stripe include adult entertainment, gambling, cannabis-related products, and alcohol. If you’re not sure whether your business falls into one of these categories, you can contact Stripe.
In Summary
Stripe is a quick and easy way to take payments and have them transferred into your bank account. For regular businesses in the United States, the process usually takes two days. For high-risk businesses, it may take up to fourteen days.
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