Slate Payments - Account Balance

This article discusses balances and settings of the Stripe Connected account, not your external bank account!

Adjusting some of these settings may, however, require assistance from your Finance team.

Your Slate Payments Deposit Account is a holding account with Stripe (a connected account on the Slate Payments platform) where your funds are held until transferred to you. Funds are collected, held, and paid out in separate sub-balances depending on the payment method (e.g. credit card charge vs. ACH payment).

If there are funds (of the relevant funds source) available in that holding account when you make a refund, those funds are used. For US-based accounts, if there are insufficient funds in the account, the refund will be initiated anyway, and the balance in that account (or sub-balance for the relevant funds source) will become negative. Whenever an account balance (or sub-balance) is negative (at the cutoff time) regularly scheduled payouts are by default suspended until the balance is again positive. 

Handling Negative Deposit Account Balances

There are two options for handling negative balances:

  1. The best option for clean reconciliation and convenience, is to adjust the payout settings for your connected account such that withdrawals can be made directly from your external bank account (at the scheduled payout interval) to cover a negative balance. If a (sub-)balance is negative at the time of the scheduled transfer a 'negative payout' will be recorded in Slate and all the individual transactions associated with it will be detailed via the familiar pre-filtered view of the payment history.

    For non-US accounts, this will be the only option to cover negative balances. If you are expecting to issue refunds without the prospect of new incoming funds, you will have to enable this option and you should consider lengthening the payout schedule to at least a weekly, but ideally a monthly frequency.

    For this to work, you will need to first contact your bank and 'allow' the Stripe ACH company ID: 1800948598 - Stripe Payments Company

    Or see here: https://support.stripe.com/questions/ach-company-ids-for-stripe
     
  2. By default we will temporarily transfer our own 'reserve funds' into your account to cover the balance on a short-term basis, and then transfer those funds back out automatically as/when additional payments come in. For non-US accounts, this ability is limited. If you are expecting to run a negative balance for any length of time, you have to enable the 2-way account setup.

    If your balance remains negative for 180 days, we will have to permanently transfer funds into your account to restore the balance (or sub-balance) to zero. We will invoice you for that amount.

    If the negative balance is large enough, we will reach out to you proactively and invoice and arrange payment much earlier!
     

If you'd like to use the "two-way option", you can enable this in the Deposit Account configuration pop-up window.

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