Payment Processors May Withhold Funds
For payment processors, some campaigns (e.g., those with high volume, a long manufacturing and delivery time, or other production challenges) pose an especially high level of risk. In these instances, Stripe may withhold a portion of your payments collected to resolve any future refunds or disputes.
Protect Yourself Against Chargebacks
When you accept payments, you effectively sign a contract with the buyer. This contract mandates that you promptly respond to customer service inquiries, keep buyers updated, and ensure products are shipped as promised. However, unexpected events can happen which may prevent you from fulfilling on time. As a result, some buyers may dispute transactions in order to get their money back.
Protect Yourself Against Buyers
In addition to increased chargeback risk, buyers who have been charged are typically more vocal and may place a heavy burden on your customer support and social media channels.
Give Yourself Maximum Flexibility
Unpredictable events can happen during the period between placing the order and fulfillment. Opting to charge later allows you to retroactively change variants, add line items, and apply discounts without requiring the buyer to place their order again.