Why introduce a new categorization?

The BalanceTransaction object’s reporting_category field is a feature available in Sigma and in financial reports. It improves on the type field by providing a more-useful grouping for most finance and reporting purposes. The following sections highlight the new field’s advantages.

More-granular breakdown of type=adjustment

The reporting_category attribute separates balance transactions with type=adjustment into several different categories, including disputes, dispute reversals, and failed refunds. Additionally, several types of fees and Connect platform-fee refunds are now explicitly categorized with reporting_category=fee.

A separate category for partial-capture reversals

If you are separately authorizing and capturing payments, and you capture an amount less than the initial authorization, you will see two balance transactions: one for the full amount of the authorization, and another reversing the uncaptured portion. (Summing the two balance transactions yields the captured portion of the charge.)

The balance transaction reversing the uncaptured portion has type=refund, just as if you had refunded a portion of a sale at some later time. To allow separate handling of these objects—perhaps counting them against the initial sale amount, rather than as a separate refund—we label these with the distinct reporting category partial_capture_reversal.

Consolidate multiple types into common categories

Using the type field, balance transactions arising from card-based charges are represented with type=charge, while those made with other payment methods are represented with type=payment. Similarly, refunds and failures for cards versus alternative payment methods have the distinct types refund and payment_refund.

We found that these distinctions made many common reporting tasks unnecessarily awkward, and so reporting_category simplifies these (and other) groups of types, as follows:

More-descriptive category names

We’ve renamed several balance transaction types for greater clarity:

Reporting categories reference

This reference covers four groups of reporting categories:

• Payments-related reporting categories
• Balance-related reporting categories
• Issuing-related reporting categories
• Connect-related reporting categories

Payments-related reporting categories

These reporting categories are related to creating and refunding charges as part of processing payments.

charge

Charges include payments from cards and from other payment methods. If you are separately authorizing and capturing payments, only the captured charges will be included here.

• Balance transaction type(s): charge, payment, or validation
• Section(s) in the monthly report: Payments (cards), Payments (other)

charge_failure

ACH, direct debit, and other asynchronous payment methods remain in a pending state until they either succeed or fail. You will see a pending balance transaction with the reporting category charge appear when the payment is created in a pending state. A charge_failure will appear if the pending payment later fails.

• Balance transaction type(s): payment_failure_refund
• Section(s) in the monthly report: Other Adjustments

dispute

When a customer disputes a charge, Stripe deducts the disputed amount from your balance.

• Balance transaction type(s): adjustment
• Section(s) in the monthly report: Disputes

dispute_reversal

When you win a dispute, the disputed amount is returned to your balance.

• Balance transaction type(s): adjustment
• Section(s) in the monthly report: Dispute Reversals

partial_capture_reversal

If you are separately authorizing and capturing payments, and you capture an amount less than the initial authorization, you will see a charge for the full authorization amount, and a partial_capture_reversal for the uncaptured portion.

• Balance transaction type(s): refund
• Section(s) in the monthly report: Payments (cards)

refund

Payments you’ve refunded to your customers. (Does not include charge failures or partial capture reversals, which are listed separately.)

• Balance transaction type(s): refund or payment_refund
• Section(s) in the monthly report: Refunds (cards), Refunds (other)

refund_failure

Created when a credit card charge refund fails, and Stripe returns the funds to your balance.

This may occur if your customer’s bank or card issuer is unable to correctly process a refund (e.g., due to a closed bank account or a problem with the card).

• Balance transaction type(s): refund_failure
• Section(s) in the monthly report: Other Adjustments

Balance-related reporting categories

These reporting categories are related to changes that affect your Stripe balance, such as payouts, fees, and top-ups.

fee

Fees for Stripe software and services (e.g., for Radar, Connect, and Billing).

• Balance transaction type(s): stripe_fee
• Section(s) in the monthly report: Other Adjustments

other_adjustment

Miscellaneous adjustments to your Stripe balance.

• Balance transaction type(s): adjustment
• Section(s) in the monthly report: Other Adjustments

payout

Payouts from your Stripe balance to your bank account.

• Balance transaction type(s): payout
• Section(s) in the monthly report: Payouts and Transfers

payout_reversal

Funds returned to your balance if a payout fails after it is initially created (e.g., due to an invalid account number or a cancellation). Learn more.

• Balance transaction type(s): payout_cancel or payout_failure
• Section(s) in the monthly report: Payouts and Transfers: Failures and Refunds

risk_reserved_funds

When Stripe holds your funds in reserve to mitigate risk, two balance transactions are created: one to debit the funds from your balance, and a second to credit the funds back to your balance at the end of the reserve period.

• Balance transaction type(s): reserved_funds
• Section(s) in the monthly report: Other Adjustments

tax

Taxes collected by Stripe to be remitted to the appropriate local governments. Typically, this is a tax on Stripe fees.

• Balance transaction type(s): tax_fee
• Section(s) in the monthly report: Other Adjustments

topup

Funds you transferred into your Stripe balance from your bank account. Learn more.

• Balance transaction type(s): topup
• Section(s) in the monthly report: Other Adjustments

topup_reversal

If an initially successful top-up fails or is cancelled, the credit to your Stripe balance is reversed. Learn more.

• Balance transaction type(s): topup_reversal
• Section(s) in the monthly report: Other Adjustments

Issuing-related reporting categories

These reporting categories are created as part of using the Issuing API.

issuing_authorization_hold

When an issued card is used to make a purchase, an authorization is created. If the authorization is approved, a balance transaction is created with the type issuing_authorization_hold to hold the authorized amount in reserve from your account balance, until the authorization is either captured or voided. Some merchants can also update an authorization to request an additional amount (e.g., to extend a hotel booking or add a tip), and this is also represented as a balance transaction with the type issuing_authorization_hold.

• Balance transaction type(s): issuing_authorization_hold
• Section(s) in the monthly report: Other Adjustments

issuing_authorization_release

When an authorized purchase, made with an issued card, is captured by the merchant, the funds previously held for the authorization (issuing_authorization_hold) are released with a issuing_authorization_release balance transaction. Simultaneously, an issuing transaction is created, and the purchase amount is deducted from your Stripe balance in another balance transaction with the type issuing_transaction.

• Balance transaction type(s): issuing_authorization_release
• Section(s) in the monthly report: Other Adjustments

issuing_transaction

When an authorized purchase, made with an issued card, has been authorized and captured by the merchant, an issuing transaction is created, and the purchase amount is deducted from your Stripe balance with a issuing_transaction balance transaction.

• Balance transaction type(s): issuing_transaction
• Section(s) in the monthly report: Other Adjustments

Connect-related reporting categories

These reporting categories are related to using the Connect API and related APIs, such as instant payouts.

advance

Incrementing available funds for instant payouts. This occurs when you create an instant payout and the requested payout amount is greater than your connected account’s available balance. Funds are added to your available balance and removed from your pending balance to cover the difference.

• Balance transaction type(s): advance
• Section(s) in the monthly report: Other Adjustments

advance_funding

Decrementing pending funds for instant payouts. This occurs when you create an instant payout and the requested payout amount is greater than your connected account’s available balance. Funds are added to your available balance and removed from your pending balance to cover the difference.

• Balance transaction type(s): advance_funding
• Section(s) in the monthly report: Other Adjustments

connect_collection_transfer

If one of your connected accounts has a negative balance for 180 days, Stripe transfers a portion of your balance, to zero out that account’s balance. Learn more.

• Balance transaction type(s): connect_collection_transfer
• Section(s) in the monthly report: Reflected in "Reserve" section

connect_reserved_funds

If one of your connected accounts’ balances becomes negative, Stripe temporarily reserves a portion of your balance to ensure that funds can be covered.

If one of your connected accounts’ previously negative balance becomes less negative due to activity on account, another reserve_transaction is created to release a corresponding portion of the funds held in reserve. Learn more.

• Balance transaction type(s): reserve_transaction
• Section(s) in the monthly report: Reflected in "Reserve" section

platform_earning

Earnings you’ve generated by collecting platform fees via Stripe Connect charges.

• Balance transaction type(s): application_fee
• Section(s) in the monthly report: Application Revenue

platform_earning_refund

Platform fees that you have returned to your connected accounts.

• Balance transaction type(s): application_fee_refund
• Section(s) in the monthly report: Application Revenue Returned

transfer

Funds sent from your balance to the balance of your connected accounts.

• Balance transaction type(s): transfer or recipient_transfer
• Section(s) in the monthly report: Payouts and Transfers

transfer_reversal

Transfers to your connected accounts that have been cancelled.

• Balance transaction type(s): transfer_cancel, transfer_refund, recipient_transfer_cancel, or recipient_transfer_failure
• Section(s) in the monthly report: Payouts and Transfers: Failures and Refunds