FreshBooks Payments powered by Stripe is available for accounts based in Canada and the United States. Once FreshBooks Payments is set up, you can manage your FreshBooks Payments account anytime.
Under Connections and Integrations, select Online Payments.
From here, you can manage your FreshBooks Payments account details:
Online Payments - Displays your FreshBooks Payments account status
Active - Your FreshBooks Payments account is in good standing and can process online payments
Inactive - Your FreshBooks Payments account is unable to process online payments, log into your FreshBooks Payments account for more information
Payouts - Displays your payout status
Active - No disruptions to payouts being sent to your connected bank account
Inactive - Your payouts are paused, log into your FreshBooks Payments account for more information
Transaction Information - Displays default transaction fees, if eligible, your email from FreshBooks will contain your specific pricing
Payout Account - If needed, select the Edit Payout Account link to add or remove connected bank accounts and set as payouts default
Set as Payouts Default - To set a newly added bank account as the default for payouts:
Select the Edit Payout Account link, then in the Stripe dashboard listing Settlement currencies and bank accounts, select the Edit button next to the new bank account, then select Set As Payouts Default
Edit Accounts - To edit existing bank accounts, in your Stripe dashboard, go to Balances, select Manage Payouts, then select Manage Bank Accounts to edit any bank account listed
Payout Schedule - Your current payout schedule, including any delays
Edit FreshBooks Payments Info - Select Edit FreshBooks Payments Info to modify any of your onboarding details, including your descriptor shown on clients’ statements
Visit Stripe Dashboard - Select Visit Stripe Dashboard to log into your FreshBooks Payments account to view payments and disputes
Note: If you’re looking to process a refund for a payment made through FreshBooks Payments, review How do I refund a payment?.
Payouts
Payouts, also known as payment settlements, are how money from your clients gets deposited into your bank account. To adjust your default bank account used for Payouts, use the Edit Payout Account link in your FreshBooks Payments settings above.
Payout Schedule and Speed
The payout schedule determines how often FreshBooks Payments sends money to your bank account. Standard payouts are set to daily automatic by default.
Payout speed is the amount of time it takes for your funds to become available, and is represented as T+X days:
T - Refers to the transaction time, as in the time of the original payment confirmation or capture
Payments can be confirmed or captured anytime between 8 am - 5 pm ET, Monday to Friday
X - Refers to the number of business days required before the funds can become available for payout
Most banks deposit payouts into your bank account as soon as they’re received, though some might take a few extra days to make the payouts available especially if it’s received on bank holidays or weekends
Payout speeds will vary depending on whether or not it’s your first payment, how your client paid, and when the payment was processed:
Payment Type
Payout Speed
Transactions until first payout
T+7
Bank Transfers (ACH, US only)
T+4
Credit Cards
T+2
Pre-Authorized Debit (PAD, Canada only, for some accounts*)
T+4
*Pre-Authorized Debit is only available for users that previously moved over from WePay to FreshBooks Payments powered by Stripe.
Payout Balances
There are two payout balances to help you track funds that are available for payouts, and funds that are on the way to your bank account.
To access the Payout Overview, use these steps:
Select the Payments section
Then select the Online Payments sub-section underneath.
Each payout balance is broken down into the below:
Future Payouts - The total of settled funds that are available for payouts
Credit card payments are available almost immediately for instant payouts, or take T+2 to process for standard payouts
Bank transfer payments require T+4 business days before they can be settled into this balance or for instant payouts
In Transit to Bank - Funds in standard payouts after deducting fees that are in flight to the bank
The Payout Process
An online payment is received on an invoice
If this transaction is part of your first payout, all transactions take T+7 to process instead
For subsequent payouts, credit card payments go to Future payouts and will take T+2 to process
For subsequent payouts, bank transfer payments that have finished processing after T+4 will go to Future payouts
If needed, credit card payments and settled bank transfers in Future payouts can be used to request Instant Payouts
If an instant payout is requested, the balance decreases from Future payouts and a confirmation email notification is sent to the owner of the FreshBooks Payments account
When a standard payout goes out, funds move from Future payouts to In transit to bank
Once the standard payout reaches the bank, the balance decreases from In transit to bank.
Payout History
The Payout History section displays details on each payout being sent to the connected bank in your FreshBooks Payments account. This includes both standard payouts and Instant Payouts.
To access the Payout History section, use these steps:
Select the Payments section
Then select the Online Payments sub-section underneath.
Next, select the View Payout History link.
Your payouts will be displayed with the following information:
Payouts can be delayed or paused for a variety of reasons:
Account verification requests - More information is required from you and your business before payouts can resume, these can include any of the following:
Bank account details incorrect or updated - Updates made to your bank account information will not retroactively apply to payouts already in transit, these are paid out to the old bank account information
Incomplete payout due to reserves - If your payout is not paid out in full, this may indicate you have a temporary reserve on your account to ensure coverage for refunds and chargebacks to process
Payout date has been changed or postponed - Expected payout dates can be updated to a future date if there are any account verification issues
Payout is missing - Banks can add extra days, including weekends and holidays to process payouts
Payout Failures for Bank Transfers and PAD Payments
Bank transfers and PAD payments can fail any time after the payment is initiated. These failures can occur for any of the below reasons:
If a payment failure occurs after funds have been made available in your FreshBooks Payments balance, the funds are immediately removed from the balance
If a payment failure is sent by the bank after payment was successful, a dispute is created with a reason of either insufficient funds, incorrect bank account details, or bank cannot process
Disputes and Chargebacks
Disputes, also known as chargebacks, occur when your client contacts their bank or credit card company to question a charge. Common reasons for disputes can include:
Credit not processed
Duplicate
Fraudulent
General
Product not received
Product unacceptable
Subscription canceled
Unrecognized
When a dispute is filed, you have a limited amount of time, usually 7-21 days, to respond to the dispute. The dispute process is as follows:
The disputed amount, along with a non-refundable dispute fee of $15, is debited immediately from your FreshBooks Payments account until the dispute is resolved
If funds are not available in your FreshBooks Payments account, funds are withdrawn from your connected bank account
A notification of the dispute is sent to your email address, along with a message in your FreshBooks account
Select the Respond to Dispute button in the email, or the Go to Stripe button in the banner inside your FreshBooks account on the Dashboard
Log into your FreshBooks Payments powered by Stripe account
Select the Disputes section, and then select the payment being disputed
Select either:
Counter Dispute to provide evidence to prove that your client is the legitimate purchaser - this can take around 60-75 days to evaluate the evidence and decide the outcome
Accept Dispute to refund the client and close the dispute.
Reports
To review which individual payments are in each payout that’s been deposited into your bank account, including a detailed breakdown of gross amount and payment fees, you can use the Stripe Payout Reconciliation report. To run a customized Payout Reconciliation report, use the below steps:
Under Connections and Integrations, select Online Payments
Select the Visit Stripe Dashboard link and log into your Stripe account
Then inside your Stripe dashboard, select the Reports section from the left menu
In the Reports section, select Payout Reconciliation
If needed, adjust the date range at the top
Then in the the Payout Reconciliation tile, select the Download button
For Reporting category, choose between All, Charges, or Refunds
Under Columns, choose between Default, All, or Custom
If Custom is selected, check off or uncheck boxes to show or hide specific columns on the report, the below columns are recommended:
Automatic Payout ID
Created (requested time zone)
Gross
Fee
Net
Description
Customer Name
Charge ID
Payment Method Type
Then select the Download button and a copy of the report will be downloaded to your computer.
FAQs
I migrated from Stripe Standard, what happened to my Stripe Capital Financing?
For users that migrated from Stripe Standard to FreshBooks Payments powered by Stripe, any in-progress Stripe Capital loans from your Stripe Standard account will continue through your FreshBooks Payments powered by Stripe account. New Capital loans created after you’ve migrated to FreshBooks Payments will not be linked to your FreshBooks Payments account.
For new funding, FreshBooks has partnered with YouLend for your capital funding needs.
Stripe Capital Details:
New Stripe Capital financing is not available within FreshBooks Payments at this time
The financing is still linked to your original Stripe Standard account including all transaction history and paydown progress
To view your in-progress financing, including making manual payments, log into your Stripe Standard dashboard and navigate to the Capital tab
New payments processed by your FreshBooks Payments powered by Stripe account will include automatic transfers to your original Stripe Standard account to pay down the financing
Account transfers are recorded as Adjustment transactions in your Stripe dashboard
