Understanding Payouts

Payouts are how you receive money from your subscription business. When customers pay for their subscriptions, the funds transfer from Stripe to your bank account based on your payout schedule.

This guide explains how payouts work, when you get paid, and how to track your money.

What Are Payouts?

A payout is a transfer of funds from your Stripe account to your connected bank account.

Simple flow:

1. Customer pays subscription → Money goes to your Stripe balance

2. Stripe deducts fees → Platform and processing fees removed

3. Payout processes → Remaining funds transfer to your bank

4. Money arrives → Appears in your bank account

✍️ TIP: Think of your Stripe balance as a holding area. Money accumulates there from customer payments, then transfers to your bank account based on your payout schedule.

Accessing Your Payout Information

View all payout details in one place:

1. Navigate to Payouts in the main menu

2. The main Payouts tab shows:

   • Connected Stripe account status

   • Recent payout history

   • Upcoming payout schedule

   • Total amount paid out

Your Payout Schedule

Your payout schedule determines how often money transfers to your bank account.

Schedule Options

Daily Payouts (Most Common)

• Funds transfer every business day

• Steady, predictable cash flow

• Best for active businesses with regular subscriptions

Weekly Payouts

• Funds transfer once per week (you choose the day)

• Good for businesses with consistent weekly revenue

• Reduces number of bank transactions

Monthly Payouts

• Funds transfer once per month (you choose the date)

• Simplifies accounting with fewer transactions

• Better for seasonal businesses

✅ BEST PRACTICE: Most subscription businesses choose daily or weekly payouts for better cash flow management. You can always change this later as your needs evolve.

Setting Your Schedule

To configure your payout schedule:

1. Go to Account > Payouts page

2. Find Payouts Summary 

3. Click Manage Payouts

4. Select your preferred frequency

5. Optionally, set Delay Days

6. Save your changes

Changes typically take effect for the next payout cycle.

How Much You Receive

The amount that reaches your bank account isn't the full subscription price—fees are deducted first.

Fee Breakdown

Customer pays: $100 subscription

Stripe processing fee: ~$3.20 (2.9% + $0.30)

• This is Stripe's fee for handling the credit card transaction

• Varies slightly by region and card type

ServiceSubscriber transaction fee: $2 (Starter) or $1 (Growth)

• 2% on Starter plan

• 1% on Growth plan

You receive: ~$94.80 (Starter) or ~$95.80 (Growth)

✍️ TIP: Factor these fees into your pricing. If you want to net $100 per subscription, you need to price higher to account for processing and platform fees.

Payout Timing

Understanding when money arrives helps with cash flow planning.

First Payout Timeline

Your first payout takes longer:

• 7-14 days after your first transaction

• Stripe verifies your account during this period

• Security measure to prevent fraud

• One-time delay only

Example:

• First customer pays: October 1

• First payout processes: October 8-15

• Money arrives in bank: October 10-22

Ongoing Payout Timeline

After the initial period:

• Payouts follow your set schedule (daily, weekly, monthly)

• Transfers typically take 2-7 business days to reach your bank

• Timing depends on your bank's processing speed

Example with daily payouts:

• Customer pays: Monday

• Payout initiates: Tuesday (next business day)

• Arrives in bank: Wednesday-Monday (2-7 days)

⚠️ IMPORTANT: Weekends and bank holidays don't count as business days. A Friday payout might not arrive until the following Tuesday or Wednesday.

Viewing Payout History

Track all your payouts in ServiceSubscriber:

In ServiceSubscriber

1. Navigate to Payouts

2. View list of past payouts showing:

   • Payout date

   • Amount transferred

   • Status (Paid, In Transit, Failed)

   • Destination bank account

In Stripe Dashboard

For detailed information:

1. Log in to stripe.com

2. Go to Payouts section

3. View comprehensive payout details:

   • Individual transactions included in each payout

   • Exact fee breakdowns

   • Bank arrival estimates

   • Payout reports you can download

✍️ TIP: Use Stripe's dashboard for detailed financial records and reconciliation. It shows transaction-level detail that's helpful for accounting and taxes.

Payout Status Indicators

Understanding status messages helps you track your money:

Pending

• Payout is scheduled but hasn't been sent yet

• Waiting for payout schedule date

In Transit

• Money has been sent to your bank

• Should arrive within 2-7 business days

• Most common status you'll see

Paid

• Money has arrived in your bank account

• Payout is complete

• Safe to spend or allocate funds

Failed

• Payout couldn't complete

• Usually due to incorrect bank details

• Requires attention to resolve

What Affects Payout Amounts

Several factors influence how much each payout contains:

Customer Payment Timing

• Only successful payments from the previous period are included (subscriptions and one-off purchases)

• Failed payments don't contribute to payouts

• Refunds reduce your payout amount

Refunds and Disputes

Refunds:

• Deducted from your next payout

• May cause a payout to be smaller than expected

• Original Stripe fees are not refunded to you

• Applies to both subscription refunds and one-off purchase refunds

Disputes/Chargebacks:

• Customer disputes temporarily freeze those funds

• Resolved disputes release funds to appropriate party

• May result in negative balance if you lose dispute

• Can occur on both subscription payments and one-off purchases

Payment Schedule

Your payout reflects:

Subscription payments:

• Which subscriptions renewed that period

• New subscriber payments

• Subscription billing cycles processed

One-off purchases:

• One-time service purchases at regular price

• Non-recurring customer payments

• Purchases fulfilled during the payout period

Other payments:

• Any manual payments processed

• Adjustments or credits applied

✍️ TIP: Track your expected revenue against actual payouts. Large discrepancies might indicate failed payments, refunds, or billing issues that need attention. Remember to account for both subscription and one-off purchase revenue when calculating expected payouts.

✅ BEST PRACTICE: Review your payout statements in Stripe to see the breakdown of subscription vs. one-off purchase revenue. This helps you understand which revenue stream is driving your business growth.

Managing Your Bank Account

Viewing Connected Bank

Your payout destination appears in the Payouts page:

• Bank name

• Account type (checking/savings)

• Last 4 digits of account number

Updating Bank Information

To change your bank account:

1. Log in to your Stripe dashboard at stripe.com

2. Go to Settings > Bank accounts and payouts

3. Click Add bank account or Edit

4. Enter new bank details

5. Save changes

⚠️ IMPORTANT: Update bank information in Stripe, not ServiceSubscriber. Changes take effect for future payouts—in-progress payouts go to the previous account.

✅ BEST PRACTICE: If you're closing a bank account, update your Stripe bank details first, then wait until all in-transit payouts complete before closing the old account.