Payments, payouts, and refunds all flow through Stripe, our payment processor. RentalTide doesn't hold your money — Stripe does. This page explains how money actually moves, why a refund can occasionally be declined, and the two tools we offer (a reserve fund or a card on file) so refunds always go through.
A refund sends money out of your Stripe balance back to the guest — Stripe never fronts it — so if your settled balance is too low, the refund can't complete until either funds settle, a reserve covers it, or we bill a card on file.
How money moves: the three states of your balance
When a guest pays, that money doesn't land in your bank instantly. It moves through three states inside Stripe:
| State | What it means | Can it be used for a refund? |
|---|---|---|
| Pending | Funds in transit from the guest's issuing bank. Processed, but not settled yet (~2 business days). | No — technically the money isn't there yet. |
| Available | Settled and cleared. Ready to pay out or refund against. | Yes. |
| Paid out | Transferred to your bank account on your payout schedule. | No — it's already in your bank. |
Your total balance = Pending + Available. Only the Available portion gets paid out each cycle. So if you see (for example) ~$9,000 total but ~$6,500 paying out, the difference is still pending and will roll into the next payouts as it settles over the following days. Nothing is being held back — it just hasn't cleared yet.
What happens when you click "Refund"
A refund isn't free money from RentalTide or Stripe — it's pulled back out of your Stripe balance and returned to the guest's card.
If most of your money is still pending and your available balance is low (or negative), there's simply nothing settled to pull the refund from — so it can't go through on its own.
Stripe allows your available balance to dip slightly negative — for example, a refund issued when very little was settled. A negative balance isn't an error; it's automatically absorbed by the next funds that settle and clear. You don't need to do anything.
The problem we're solving
Because refunds come out of settled funds, a busy operator can hit a timing gap: a big refund is needed today, but today's revenue is still pending. Someone has to cover that gap, and RentalTide is liable for it — your negative balance is carried on our platform account. We legally and financially can't simply absorb every operator's refund risk.
So we offer two ways to make sure refunds always go through. You pick whichever you prefer.
Option A — The reserve fund
We ask Stripe to hold back a small amount of your own money in your Available balance instead of paying 100% of it out. That held-back cushion is always there to cover a refund.
How big is the reserve? We calculate it as your largest single refund day that's realistically possible on your upcoming books — recalculated daily. The reserve shrinks automatically as your exposure drops.
Example: If your biggest possible refund day is $3,600, we hold $3,600. If that day passes or rebooks and your biggest exposure drops to $600, we immediately release the other $3,000 to your next payout.
The reserve is your own money, sitting in your own Stripe account. We're not taking it — we're just telling Stripe "don't pay this portion out yet." It releases back to you automatically as your risk goes down, and there are no extra fees.
Option B — Card on file
Instead of holding back a reserve, you can save a business credit/debit card with us. When a refund is needed and your settled balance can't cover it, we charge that card and issue the refund from our account on your behalf.
Add or update your card: app.rentaltide.com/subscription
When we cover a refund by charging your card, we pass through the card processing fee (roughly 2.9% + $0.30), because we'd otherwise lose that on the charge. The reserve fund has no such fee since it uses money already settled in your account — which is why we generally recommend the reserve for most operators.
Which should I choose?
| Reserve fund | Card on file | |
|---|---|---|
| Where the money comes from | Your own settled balance | A card we charge when needed |
| Extra fees | None | Card processing fee per refund (~2.9% + $0.30) |
| Effect on payouts | Holds back your largest-possible-refund-day amount, released daily as risk drops | Pays out 100%; covers refunds by charging your card |
| Best for | Most operators — keeps refunds instant with no added cost | Operators who want every dollar paid out immediately and don't mind the card fee on refunds |
You can run either — both guarantee refunds go through. The reserve is usually the cheaper choice; the card is the most cash-flow-friendly for payouts.
Frequently asked questions
Why was my refund declined?
Your available (settled) balance couldn't cover it — usually because most of your money was still pending in transit. Once funds settle, a reserve is in place, or a card is on file, refunds go through normally.
Why is my balance negative?
A refund was issued when very little had settled, pushing your available balance slightly negative. Stripe permits this, and it self-corrects as your next funds settle. No action needed.
Why doesn't my upcoming payout match my total balance?
Only available funds pay out. The rest is pending and pays out over the next couple of days as it settles. See the three states of your balance.
If I remove my reserve, what happens?
Your full available balance resumes paying out on your normal schedule, so your payouts will line up with what's settled. You'll just want a card on file (or to keep a healthy balance) so refunds can still be covered.
Is the reserve money actually mine?
Yes. It stays in your Stripe account the whole time — we only tell Stripe to delay paying out that portion. It releases back to you automatically as your refund exposure drops.
Need help?
If a refund won't go through or your payouts look off, reach out via Settings → Support. We'll check your balance, pending funds, and reserve settings and walk you through it. We're here to be your partner in getting you paid.