Instant payouts vs standard: when the fee is worth it
Use this playbook + mini calculator to decide when to pay Stripe's instant payout fee and when to wait for the normal settlement.
Not financial advice
Pricing guidance here is educational. Model rate changes against your own books, suppliers, and market before implementing them.
Instant payouts vs standard: when the fee is worth it
A 0.5% instant payout fee sounds tiny—until you’re running dozens of jobs a day. Use this guide to choose when to pull cash early and when to let Stripe’s standard payout land for free.
Quick calculator
Fee = Amount × 0.5% (min £0.50)
Break-even days = Fee ÷ (daily cost of cash)
Example: £4,000 payout × 0.5% = £20 fee. If your overdraft costs 10% APR (~£1.10 per day on £4k), instant payout saves money if it prevents more than ~18 days of interest.
When instant payouts make sense
- Payroll tomorrow: Covering wages beats paying overdraft fees.
- Material pre-payments: Suppliers demand payment before releasing kit.
- Weekend jobs: Stripe won’t settle until Monday—instant payout keeps cash moving.
- Emergency callouts: Customer pays at 2 a.m.; instant payout lets you restock parts first thing.
When to wait for standard payouts
- Cash buffer already covers the next 3–4 days.
- You’d only use instant payout for habit, not necessity.
- The invoice is tiny (e.g., £120) and the fee would chew through margin.
Toolfy workflow
- Toolfy → Settings → Payments shows live Stripe balance.
- If you need cash, click Open Stripe Dashboard and hit Instant payout.
- Log the reason in your finance Slack channel so the team knows why cash moved.
- Use Toolfy’s payout alerts to match the instant payout against invoices (Reconciliation Guide).
Policy template
Instant payout allowed when:
- Payroll or supplier payment is due within 24h AND
- Standard payout arrival is >24h away AND
- Fee < £50 OR finance lead approves
Share this with your finance lead so the rule is clear.
Bonus: automate the decision
- Add Stripe balance + upcoming expenses to a Google Sheet.
- Use Toolfy’s metrics API (coming soon) or exports to feed scheduled costs.
- If buffer < £5k, Slack the finance channel to consider instant payout.
Need help reconciling instant payouts? Email support@toolfy.io with the payout ID—we’ll replay webhooks so Toolfy matches Stripe instantly.
⚠️ Important Disclaimer
This guide is for general informational and educational purposes only. It does not constitute professional advice of any kind (legal, financial, tax, insurance, or otherwise).
Before making business decisions: Consult with qualified professionals (solicitors, accountants, insurance brokers, etc.) who can assess your specific circumstances. Laws, regulations, and industry standards change frequently and vary by location and situation.
Toolfy and the article authors accept no liability for decisions made or actions taken based on information provided in this guide. You are solely responsible for ensuring compliance with all applicable laws and regulations.
Frequently Asked Questions
How do I calculate if an instant payout is worth the fee?
When does an instant payout make financial sense?
When should I wait for standard Stripe payouts instead?
Need this workflow in Toolfy?
Spin up the exact checklist, scripts, and automations from this article inside your workspace.
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