What are holding periods?
Holding periods are predefined timeframes during which deposited funds are held before they become fully accessible. These periods allow for the verification of the legitimacy of checks, crucial for protecting businesses against financial discrepancies arising from returned or bounced checks. Here’s how it works within our electronic check deposit process:
Deposit initiation: When a check is detected, you can initiate a deposit. Our operations team endorses the check using the account number and then uses mobile deposit hardware we have onsite to deposit your check.
Funds settlement: Funds are credited to your electronic check deposit account within one business day. However, the availability of these funds is contingent upon the holding period associated with the check's amount (explained below).
Transfer to bank account: Once the holding period has elapsed, the funds become available in your Stable holding account to be periodically transferred to your bank at the frequency of your choice.
Holding period explained
As of May 2025, all electronic check deposits are now subject to a standard 5-business-day holding period, regardless of the amount.
Previously, shorter or tiered holding periods were applied based on check size. This update aligns Stable with Stripe’s default risk practices and ensures consistent security and fraud protection across all deposits.
Managing check reversals after the holding period
In cases where the holding period fails to prevent a check reversal after funds have been transferred, Stable has measures in place to address the situation:
Handling reversals: If a check is reversed post-transfer, you are notified to either refund the transferred amount or deposit another check to balance the account within 15 days.
Addressing frequent reversals: To minimize financial disruptions from frequent reversals, Stable may extend the holding period for customers experiencing recurring issues.
For more detailed information on electronic check deposits, visit our support page: How do check deposits work?
Stable partners with Stripe Payments Company for money transmission services and account services with funds held at Fifth Third Bank N.A., Member FDIC and Evolve Bank and Trust, Member FDIC.