Short answer
Retrieve the connected account and check payouts_enabled and the requirements hash. If requirements are currently_due or past_due, collect that information from the account holder and update the account. Watch account.updated events so the platform knows when payouts are enabled again.
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Why payouts are disabled, and the fix
01
Payouts are off on the connected account
“Payouts have been disabled on the connected account.” Stripe, Error codes (payouts_not_allowed)
The payouts_enabled attribute on the Account object indicates whether it can accept payouts. If it is false, expect this error.
02
Verification information is due
“If either of those attributes is false, check the Account’s requirements hash to determine what information is needed to enable charges and payouts.” Stripe, Handle verification with the API (Accounts v1)
If payouts_enabled is false, check the requirements hash to see what information is needed: currently_due lists what to resolve by the current_deadline, and past_due lists requirements that already disabled capabilities.
03
New requirements appeared after onboarding
“Continue watching for account.updated event notifications to see if the requirements hash changes, and ask the connected account for additional information as needed.” Stripe, Handle verification with the API (Accounts v1)
Also check: requirements can change after onboarding, so a platform that isn’t watching account.updated can miss them. Stripe’s guidance is below.
04
Payouts were disabled for another reason
Also check: the requirements hash has a disabled_reason that describes why the account isn’t enabled. If nothing is due and payouts are still off, read that field before contacting Stripe.
Checked against the vendor’s docs on : Stripe docs: Error codes; Stripe docs: Handle verification with the API (Accounts v1); Stripe API: The Account object.
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Related: Stripe payout failed · Stripe Connect onboarding incomplete · Stripe capability not active · Stripe stripe_tax_inactive