When you cancel a trip and issue full refunds to your travelers, you might notice that the total amount withdrawn from your account to process those refunds is higher than expected. This difference is due to how Stripe, our payment processing partner, handles payment processing fees.
How It Works
When a traveler makes a payment through SquadTrip, Stripe charges a payment processing fee. This fee is collected by Stripe at the time of the original transaction and is not retained by SquadTrip.
While SquadTrip refunds its own service fee in full when you issue a refund, Stripe does not return its payment processing fees when a refund is processed. Instead, Stripe deducts that fee from your account to ensure your traveler receives a full refund of the amount they paid.
Example:
If a traveler paid $1,000 and the Stripe processing fee was $30, Stripe keeps the $30 fee even if you refund the traveler in full. To ensure the traveler gets the complete $1,000 back, Stripe will deduct the $30 from your account.
Key Takeaway:
The difference between your expected refund total and the actual amount withdrawn is the sum of Stripe’s processing fees on the refunded transactions. You can review these fees in your Stripe dashboard for a detailed breakdown.
If you need assistance locating this information, contact our support team and we’ll guide you through it.