Skip to content
Create account
or
Sign in
The Stripe Docs logo
/
Ask AI
Create account
Sign in
Get started
Payments
Finance automation
Platforms and marketplaces
Money management
Developer tools
Get started
Payments
Finance automation
Get started
Payments
Finance automation
Platforms and marketplaces
Money management
Overview
About Stripe payments
    Overview
    Currencies
    Declines
    Payouts
      Payout reconciliation
      Payout trace IDs
      Payout statement descriptors
      Multi-currency settlement
      Instant Payouts
        Issuer support
        Advance funding
      Customized start of day
      Minimum balances for automatic payouts
    Recurring payments
    3D Secure authentication
    Refund and cancel payments
    Balances and settlement time
    Receipts
    Handle webhook events
    SCA readiness
Upgrade your integration
Payments analytics
Online payments
OverviewFind your use caseManaged Payments
Use Payment Links
Build a checkout page
Build an advanced integration
Build an in-app integration
Payment methods
Add payment methods
Manage payment methods
Faster checkout with Link
Payment interfaces
Payment Links
Checkout
Web Elements
In-app Elements
Payment scenarios
Custom payment flows
Flexible acquiring
Orchestration
In-person payments
Terminal
Other Stripe products
Financial Connections
Crypto
Climate
HomePaymentsAbout Stripe paymentsPayoutsInstant Payouts

Instant Payouts with advance funding

Let Instant Payouts access pending balances with trackable balance activities.

Copy page

Instant payout users benefit from quick access to their pending balances. To use these funds safely, explicit actions like advance funding are necessary for accurate bookkeeping when fund availability changes.

How Instant Payouts with advance funding works

Stripe enables Instant Payouts users to access pending balances through the advance and advance_funding type balance transactions. When you create an instant payout that exceeds your available balance, funds are added to your available balance and subtracted from your pending balance to cover the difference.

Granular advance funding

To align advance funding with the original availability of payments, Stripe creates multiple advance_funding type balance transactions when it pulls funds from multiple days’ worth of payments balances.

For example, if you have the following:

  • 0 USD in your available balance today
  • 25 USD available on tomorrow (T+1)
  • 15 USD available on the day after (T+2)

When you request a 40 USD instant payout, you’ll see two separate advance_funding type balance transactions:

  • One that deducts 25 USD from your T+1 balance
  • One that deducts 15 USD from your T+2 balance
  • And one advance type balance transaction that credits 40 USD to your available balance

Reversal of failed or canceled Instant Payouts

When an instant payout fails or gets canceled, the corresponding advance and advance_funding type balance transactions are reversed by offsetting balance transactions. In the example above, if the 40 USD instant payout fails, we:

  • Credits 25 USD to your T+1 balance
  • Credits 15 USD to your T+2 balance
  • Deducts 40 USD from your available balance

Negative available balance recovery

When your available balance is negative, advance funding does not restore it. Instead, it only provides funding for the requested instant payout amount, leaving your negative available balance unchanged. We’ll choose the right bucket of pending balances to allow your negative available balance to phase out gradually. This funding is drawn from future days where the cumulative balance is positive. For example:

  • -25 USD in your available balance today (available balance)
  • 20 USD available tomorrow (T+1)
  • 30 USD available the day after (T+2)

In this scenario, the cumulative balance on T+1 is -5 USD, while T+2 shows a cumulative balance of 25 USD. If you request a 10 USD instant payout, we:

  • Deduct 10 USD from your T+2 balance
  • Credit 10 USD to your available balances for the Instant Payouts

This method retains more recent pending balances, aiding recovery from a negative balance. The cumulative balance recovers on T+2.

Filter balance transactions by source

Use the source field to find the advance and advance_funding type balance transactions for the Instant Payout. You can access the source field in the Dashboard when you filter transactions or through the Balance Transactions API.

  1. Go to the Balances > All activity page.
  2. Click the Export button and select a time range.
  3. Open the downloaded balance history CSV file.
  4. Locate the source column in the export file.
  5. The related advance and advance_funding balance transactions will have a source field that matches the instant payout token.
Was this page helpful?
YesNo
Need help? Contact Support.
Join our early access program.
Check out our changelog.
Questions? Contact Sales.
LLM? Read llms.txt.
Powered by Markdoc
Related Guides
Instant Payouts for Stripe Dashboard users
Instant Payouts for Connect marketplaces and platforms
Products Used
Payments
Connect