Faster refunds with Stripe's new minimum balance feature

Stripe now offers Minimum Balances for Automatic Payouts, a new feature designed to streamline refund processing and ensure faster refunds for your attendees. This ensures sufficient funds are always available to cover refunds, preventing delays.

A minimum balance is a specific amount Stripe holds in your account, designated solely for refunds. Stripe draws from this balance first when a refund is processed, enabling immediate refunds even if your account balance is low. This is crucial for event organizers as it ensures faster refunds for attendees, prevents negative balances and simplifies overall refund management.

Stripe automatically calculates a recommended minimum balance based on your recent sales and refund history. You can also customize this amount to fit your specific needs. Your regular payouts will be adjusted to maintain this minimum balance. When you issue a refund, Stripe deducts it from this reserve. As you make new sales, the minimum balance is replenished to your target.

Setting Your Minimum Balance:

While Stripe may automatically set a minimum balance, you can adjust it manually:

1. Log in to your Stripe Dashboard.
2. Navigate to Settings (usually a gear icon in the top right).
3. In the Settings menu, find Payouts and bank accounts.
4. Select Scheduling.
5. Here, you will see the option to manage your minimum balance. You can set a custom amount or use Stripe's recommended amount - direct link.

Consider customizing the minimum balance based on your event's refund policies and anticipated refund rates, considering factors like ticket pricing, event size, and past refund data. Your Stripe balance reports will clearly show the portion of your funds held as a minimum balance for easy reconciliation.