In what order are funds utilized when issuing a refund?

• A. The available Stripe balance, then funds added for future refunds, then bank.
• B. The funds you added for future refunds, then the available Stripe balance, then the funds in your bank account.
• C. Bank funds first, then Stripe balance.
• D. It depends on the merchant's preference.

Answer: (B)

When refunds are issued, Stripe uses money in a specific order. It first taps any funds you’ve added specifically to cover future refunds. If those are exhausted, it uses your available Stripe balance. Only if both of those are insufficient does Stripe draw from funds in your linked bank account. This setup helps you pre-fund refunds to protect cash flow, with the bank as a last resort. The idea that the order is based on merchant preference isn’t how Stripe processes refunds, and it isn’t about bank-first handling.