Notes

group 3 slide 20-31

unsuccessful payouts can seem to appear successful on Stripe's end but might encounter issues once its processed by the bank.

Reasons may be due to closed or inactive account or a payout having been sent to a wrong account due to human error.

for closed accounts: the bank may initiate a Return to Sender. Essentially the bank rejects the payout and ends the money back to the originating account which in this case is Stripes account.

If a user or business has closed the account but has opened a new account under the same name and information. the bank may or has the discretion to initiate the movement of funds towards the new account.

Human error: Since bank accounts may be composed of numbers or letters, if the user's account information somehow is wrong but the account number does actually exists. the bank may allow the funds to go through. this is critical since we may not be able to reverse the payout.

payout reversal:

reversing a payout does not actually reverse, void or cancel the existing payout. Instead, reversing a payout requests a debit from the user's bank account, independent of the original outgoing payout. The 5 day delay is there a safeguard, so that the original payout will have reached the user's bank. We do this as a consideration for the user's bank account balance.

for payouts that are still pending, it's more of a cancellation than a reversal.