Your Stripe balance can go negative. It happens when money leaves your account at a time when there is not enough incoming volume to cover it. This article explains when that occurs and how the balance is brought back to zero.
How a balance goes negative
Two things pull money out of your balance:
Disputes. When a chargeback opens, the disputed amount is held and the $15 fee is charged. If you respond, a further $15 applies. A lost dispute means the contribution itself is gone as well.
Refunds. The donor receives the full amount you refund, but the fees on the original contribution are not returned. So a refund costs you the amount plus the fees already paid on it.
If your balance is low or you have already been paid out for the day, there may not be enough left to absorb these. The balance then goes negative.
Refunding a contribution that was paid out days ago is the most common way campaigns end up here.
How the balance is recovered
Stripe brings the balance back to zero in this order:
From new contributions. If donations are still coming in, the negative balance is taken out of them first. Payouts resume once the balance is positive again.
By debiting your account. If there is not enough incoming volume, Stripe debits the bank account or debit card linked to your Stripe account, where automatic debit is enabled on it.
By you adding funds. If automatic debit is not available, you cover the shortfall by adding funds to your Stripe balance yourself.
Payouts are paused while the balance is negative, so a paused payout is often the first sign that something needs attention.
FAQ
How do I know my balance is negative?
Check the Payouts card on the Transactions tab of www.raisemore.app/payments. Stripe also shows a notification banner at the top of the Overview tab when it needs something from you.
Will my payouts stop?
Yes, until the balance is back to zero or above. They resume automatically after that.
Can I avoid a negative balance?
Not entirely, because disputes are outside your control. Being aware that a refund does not return the original fees, and that a dispute removes both the contribution and a fee, makes it easier to anticipate.
Does Raise More take money from my bank account?
No. Any recovery of a negative balance is done by Stripe against your connected Stripe account. Raise More does not debit your bank account.
What if I cannot cover the negative balance?
Contact support. Do not leave it unresolved, because Stripe restricts an account that stays negative and that stops you accepting contributions.