Connect lets you use the full Stripe API on behalf of your connected accounts, including the ability to create charges. See the sections of this page and the following pages for details:
- Create direct charges on the connected account
- Create destination charges on your platform account
- Create the charge on your platform account and separately transfer funds to the connected account
Choosing an approach
Choosing the best charging approach depends on many factors. The following table can help you choose the best approach for your use case:
Normally, a single approach is appropriate, but your platform can use more than one approach, or switch approaches should the business change.
Because the charging approach you use impacts how funds flow through Stripe, it may help to also read about account balances.
- The connected account is responsible for the cost of the Stripe fees, refunds, and chargebacks
- The payment itself appears as a charge in the connected account, not in your platform account
- Charges directly increase the connected account’s balance
- Your platform’s balance increases only with application fees
- Your platform account is responsible for the cost of the Stripe fees, refunds, and chargebacks, handling these for the connected account by default
- The payment itself appears as a charge in your platform account, followed by an automatic allocation to the connected account, which decreases your platform’s balance and increases the connected account’s balance
Separate charges and transfers
If your platform needs more flexibility in how funds move than destination charges can provide, you can create the charge on your platform account and separately transfer funds to the connected account. The tradeoff is a more complex integration. With this approach:
- The platform is responsible for the cost of the Stripe fees, refunds, and chargebacks by default
- The payment itself appears as a charge in your platform account, with a separate, manual allocation to the connected account, which decreases your platform’s balance and increases the connected account’s balance
- Funds from charges can be allocated to more than one connected account
- Platform fees are earned by allocating less than the entire charge amount to the connected account
Because of the additional programming and operations required, this approach is more appropriate for businesses with any of these qualities:
- A one-to-many correlation between charges and transfers (e.g., a charge made to a delivery service needs to be split between the business—the source of the items being delivered—and the delivery person)
- A many-to-one correlation between charges and transfers (e.g., a carpool trip on a ride-sharing service)
- At the time the charge is made, it is not known which connected account should receive the funds (e.g., a cleaning service may process the charge immediately but not know which connected account to pay—who is actually doing the work—until later)
- A transfer may need to be made before the actual charge is made, or while the charge is pending (e.g., an ad network needs to purchase ad space before users pay for ads, or before their payments are complete).
- A transfer may be for more than the associated charge (e.g., a platform may discount a charge for the customer but still pay the connected account the full amount)
Because the transfer amount can be greater than the charge amount, or the transfer can be made before the charge is processed, you must monitor your platform balance carefully to make sure you can cover the transfer amount.
Understanding pricing plans and the Stripe fee on Connect charges
Stripe’s fee is part of the pricing plan for accounts, and is assessed on the platform in most cases, with the following exceptions:
- For direct charges, the pricing plan of the connected account determines the fee, and the fee is assessed on the connected account.
- For destination charges or for separate charges and transfers with
on_behalf_ofset, the country of the connected account also affects the pricing plan and fee.
Pricing varies based on a range of factors. Contact us for additional details and clarification about Connect pricing.
For platforms interested in custom pricing, we can negotiate a pricing plan that applies to all Custom or Express accounts for that platform.
To give money back for a returned good or to compensate for unsatisfactory service, you can create refunds. Here’s how each charging approach handles refunds:
|Charging Approach||Account Types||Pending Refunds|
||If the connected account’s balance is sufficiently negative at creation time, the
||If the connected account’s balance and your platform's account balance are sufficiently negative at creation time, the
||If your platform's account balance is sufficiently negative at creation time, the
Now that you know the ways you can create charges with Connect, read more about a specific approach:
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