Payout, explained
Card money does not land in the bank the moment the client taps. The processor holds it as a balance, nets off the fee on each charge, any refunds and any chargebacks, and pays out what is left. In Canada, Stripe’s first payout on a new account arrives after 7 calendar days and after that the default is 3 business days from each charge, though a merchant can set a slower weekly or monthly schedule.
The schedule is a cash-flow choice. A daily or three-day schedule puts money in the account continuously but makes the bank statement hard to read: dozens of small deposits, each a mix of several days of tips, services and products. A weekly payout lands one number that matches one week of sales, which is easier to reconcile and easier to pay rent from.
The mistake shops make most is reading a payout as sales. The payout is sales minus the card fee minus refunds, so a week with $4,000 of card sales shows up as something like $3,860, and a week with a dispute shows up lower still. Reconcile from the sales report, not from the bank line.
BarberFlow sets every new shop’s Stripe account to one payout a week, on Friday, so each bank deposit matches one week of card sales in Accounting. Card fees, refunds and tips are itemized on every payment, and the payments export by date range gives the accountant the gross figure the bank line was netted from. Paying the barbers is a separate step: Auto-Pay runs commission and booth-rent payouts on their own schedule.
See AccountingFrequently asked questions
How long does Stripe take to pay out in Canada?
The first payout on a new account takes 7 calendar days. After that the default is 3 business days from the charge, unless the account is set to a weekly or monthly schedule. BarberFlow sets shops to a weekly Friday payout.
Why is my payout less than my card sales?
The processor nets off the card fee on each charge, any refunds and any disputes before paying out, so the deposit is the net figure. Reconcile against the sales report, which shows the gross amount and each deduction.
Are tips included in the payout?
Yes. A tip added on the card is part of the charge, so it arrives in the shop’s payout with the service and the card fee is taken on the whole amount. The shop then passes the tip to the barber through payroll or cash.
