A good way to build trust in your marketplace and be sure that providers deliver what was purchased is to transfer the payment to the provider only after the service or item has been delivered. With Stripe, funds can be held for up to 90 days.

How to enable delayed payments

You don't have to do anything: as long as you have configured Stripe as your payment provider, all transactions benefit from the delayed payments feature.

In Stripe, you can notice in the Connect accounts sections that payout for your provider's accounts is set to "Manual": this is because your marketplace is the source that will trigger the fund release.

Who collects and holds the money during the payout delay?

Stripe will hold the money and take care of the payout. You, as the marketplace administrator, don't hold the money. This means you are not legally liable for it.

You can check the seller's balance (including delayed payments) in your Stripe dashboard, in the Connected accounts section. 

When will sellers receive their money?

Sellers will receive the money when one of the following actions occurs:

  • the transaction is manually marked as completed by the buyer
  • the transaction is automatically marked as completed after a number of days as defined in the Settings section of the marketplace admin panel
  • if the transaction was a booking, the transaction is automatically marked as completed two days after the end date
  • 90 days have passed since the transaction request was accepted by the seller

Note that holding funds doesn't apply to the transaction fee received by the marketplace admin.

What are the limits associated to holding funds?

With Stripe, delayed payments are enabled by default. This has a few effects:

  • it is not possible for buyers to select an end date that is more than 85 days in the future in an availability listing using one of the calendars
  • funds can't be held for longer than 90 days

It is possible to disable delayed payments with Stripe?

Currently, it is not possible to disable this feature with Stripe.

It is possible to use delayed payments with PayPal?

PayPal does not currently offer this feature.

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