Creating Destination Charges on Your Platform

With Connect, you can make charges through your platform account on behalf of connected accounts and take fees in the process.

Connect supports three approaches for processing charges on behalf of a connected account. For Express and Custom accounts, the easiest route is to create the charge on the platform account and use the destination parameter to indicate the connected account. Using this approach, the platform is responsible for the cost of the Stripe fees, refunds, and chargebacks.

This approach best fits an on-demand model, wherein customers interact with the platform and the platform leverages vendors (e.g., Lyft). This model also has a simple relationship between the charge (e.g., for the ride) and the transfer (e.g., to the individual driver).

To charge on the platform while setting a destination, perform a standard create charge request while providing the connected account ID as the destination[account] value:

curl https://api.stripe.com/v1/charges \
   -u sk_test_BQokikJOvBiI2HlWgH4olfQ2: \
   -d amount=1000 \
   -d currency=usd \
   -d source=tok_visa \
   -d destination[account]="{CONNECTED_STRIPE_ACCOUNT_ID}"

# Set your secret key: remember to change this to your live secret key in production
# See your keys here: https://dashboard.stripe.com/account/apikeys
Stripe.api_key = "sk_test_BQokikJOvBiI2HlWgH4olfQ2"

charge = Stripe::Charge.create({
  :amount => 1000,
  :currency => "usd",
  :source => "tok_visa",
  :destination => {
    :account => "{CONNECTED_STRIPE_ACCOUNT_ID}",
  }
})

# Set your secret key: remember to change this to your live secret key in production
# See your keys here: https://dashboard.stripe.com/account/apikeys
stripe.api_key = "sk_test_BQokikJOvBiI2HlWgH4olfQ2"

charge = stripe.Charge.create(
  amount=1000,
  currency="usd",
  source="tok_visa",
  destination={
    "account": "{CONNECTED_STRIPE_ACCOUNT_ID}",
  }
)

// Set your secret key: remember to change this to your live secret key in production
// See your keys here: https://dashboard.stripe.com/account/apikeys
\Stripe\Stripe::setApiKey("sk_test_BQokikJOvBiI2HlWgH4olfQ2");

$charge = \Stripe\Charge::create(array(
  "amount" => 1000,
  "currency" => "usd",
  "source" => "tok_visa",
  "destination" => array(
    "account" => "{CONNECTED_STRIPE_ACCOUNT_ID}",
  ),
));

// Set your secret key: remember to change this to your live secret key in production
// See your keys here: https://dashboard.stripe.com/account/apikeys
Stripe.apiKey = "sk_test_BQokikJOvBiI2HlWgH4olfQ2";

Map<String, Object> params = new HashMap<String, Object>();
params.put("amount", 1000);
params.put("currency", "usd");
params.put("source", "tok_visa");
Map<String, Object> destinationParams = new HashMap<String, Object>();
destinationParams.put("account", "{CONNECTED_STRIPE_ACCOUNT_ID}");
params.put("destination", destinationParams);
Charge charge = Charge.create(params);

// Set your secret key: remember to change this to your live secret key in production
// See your keys here: https://dashboard.stripe.com/account/apikeys
var stripe = require("stripe")("sk_test_BQokikJOvBiI2HlWgH4olfQ2");

stripe.charges.create({
  amount: 1000,
  currency: "usd",
  source: "tok_visa",
  destination: {
    account: "{CONNECTED_STRIPE_ACCOUNT_ID}",
  },
}).then(function(charge) {
  // asynchronously called
});

// Set your secret key: remember to change this to your live secret key in production
// See your keys here: https://dashboard.stripe.com/account/apikeys
stripe.Key = "sk_test_BQokikJOvBiI2HlWgH4olfQ2"

params := &stripe.ChargeParams{
  Amount: 1000,
  Currency: "usd",
  Destination: &stripe.DestinationParams{
    Account: "{CONNECTED_STRIPE_ACCOUNT_ID}",
  },
}
params.SetSource("tok_visa")

charge, err := charge.New(params)

The example uses a test token—tok_visa—but you could tokenize a test card using Stripe Elements or Stripe Checkout instead.

When using the destination[account] parameter, the token must be created using the platform’s publishable key. If charging a Customer object, the Customer must exist within the platform account.

The charge is attributed to the destination account on applicable tax reporting (e.g., a 1099 tax form).

Collecting platform fees

With Connect, your platform can earn money while processing charges. When using the destination[account] parameter, you effectively take a fee by using the destination[amount] parameter.

The destination[amount] is a positive integer reflecting the amount of the charge to be transferred to the destination[account]. Calculate this value by subtracting your platform’s fees from the charge amount:

curl https://api.stripe.com/v1/charges \
   -u sk_test_BQokikJOvBiI2HlWgH4olfQ2: \
   -d amount=1000 \
   -d currency=usd \
   -d source=tok_visa \
   -d destination[amount]=877 \
   -d destination[account]="{CONNECTED_STRIPE_ACCOUNT_ID}"

# Set your secret key: remember to change this to your live secret key in production
# See your keys here: https://dashboard.stripe.com/account/apikeys
Stripe.api_key = "sk_test_BQokikJOvBiI2HlWgH4olfQ2"

charge = Stripe::Charge.create({
  :amount => 1000,
  :currency => "usd",
  :source => "tok_visa",
  :destination => {
    :amount => 877,
    :account => "{CONNECTED_STRIPE_ACCOUNT_ID}",
  }
})

# Set your secret key: remember to change this to your live secret key in production
# See your keys here: https://dashboard.stripe.com/account/apikeys
stripe.api_key = "sk_test_BQokikJOvBiI2HlWgH4olfQ2"

charge = stripe.Charge.create(
  amount=1000,
  currency="usd",
  source="tok_visa",
  destination={
    "amount": 877,
    "account": "{CONNECTED_STRIPE_ACCOUNT_ID}",
  }
)

// Set your secret key: remember to change this to your live secret key in production
// See your keys here: https://dashboard.stripe.com/account/apikeys
\Stripe\Stripe::setApiKey("sk_test_BQokikJOvBiI2HlWgH4olfQ2");

$charge = \Stripe\Charge::create(array(
  "amount" => 1000,
  "currency" => "usd",
  "source" => "tok_visa",
  "destination" => array(
    "amount" => 877,
    "account" => "{CONNECTED_STRIPE_ACCOUNT_ID}",
  ),
));

// Set your secret key: remember to change this to your live secret key in production
// See your keys here: https://dashboard.stripe.com/account/apikeys
Stripe.apiKey = "sk_test_BQokikJOvBiI2HlWgH4olfQ2";

Map<String, Object> params = new HashMap<String, Object>();
params.put("amount", 1000);
params.put("currency", "usd");
params.put("source", "tok_visa");
Map<String, Object> destinationParams = new HashMap<String, Object>();
destinationParams.put("amount", 877);
destinationParams.put("account", "{CONNECTED_STRIPE_ACCOUNT_ID}");
params.put("destination", destinationParams);
Charge charge = Charge.create(params);

// Set your secret key: remember to change this to your live secret key in production
// See your keys here: https://dashboard.stripe.com/account/apikeys
var stripe = require("stripe")("sk_test_BQokikJOvBiI2HlWgH4olfQ2");

stripe.charges.create({
  amount: 1000,
  currency: "usd",
  source: "tok_visa",
  destination: {
    amount: 877,
    account: "{CONNECTED_STRIPE_ACCOUNT_ID}",
  },
}).then(function(charge) {
  // asynchronously called
});

// Set your secret key: remember to change this to your live secret key in production
// See your keys here: https://dashboard.stripe.com/account/apikeys
stripe.Key = "sk_test_BQokikJOvBiI2HlWgH4olfQ2"

params := &stripe.ChargeParams{
  Amount: 1000,
  Currency: "usd",
  Destination: &stripe.DestinationParams{
    Amount: 877,
    Account: "{CONNECTED_STRIPE_ACCOUNT_ID}",
  },
}
params.SetSource("tok_visa")

charge, err := charge.New(params)

Keep in mind:

The destination[amount] is capped at the total transaction amount
The amount is always processed in the same currency as the transaction
Your platform separately pays the Stripe fees on the charge
No additional Stripe fees are applied to the amount

Flow of funds with fees

With the above code, the destination[amount] ($8.77) is added to the connected account’s pending balance. The charge total less the Stripe fees (on the charge amount) less the destination[amount] is added to the platform account’s pending balance ($0.64, which is $10.00 - $0.59 - $8.77).

The destination[amount] becomes available on the connected account’s normal transfer schedule, just like funds from regular Stripe charges.

Platforms can track how much they retain from destination[amount] charges by looking at the Destination Platform Fee column in the Balance history export.

If you process payments in multiple currencies, you should also read how that is handled in Connect.

Issuing refunds

Charges created on the platform account can be refunded using the platform account's secret key. When refunding a charge that has a destination[account], by default the destination account keeps the funds that were transferred to it, leaving the platform account to cover the negative balance from the refund. To pull back the funds from the connected account to cover the refund, set the reverse_transfer parameter to true when creating the refund:

curl https://api.stripe.com/v1/refunds \
   -u sk_test_BQokikJOvBiI2HlWgH4olfQ2: \
   -d charge="{CHARGE_ID}" \
   -d reverse_transfer=true

# Set your secret key: remember to change this to your live secret key in production
# See your keys here: https://dashboard.stripe.com/account/apikeys
Stripe.api_key = "sk_test_BQokikJOvBiI2HlWgH4olfQ2"

refund = Stripe::Refund.create({
  :charge => "{CHARGE_ID}",
  :reverse_transfer => true,
})

# Set your secret key: remember to change this to your live secret key in production
# See your keys here: https://dashboard.stripe.com/account/apikeys
stripe.api_key = "sk_test_BQokikJOvBiI2HlWgH4olfQ2"

refund = stripe.Refund.create(
  charge="{CHARGE_ID}",
  reverse_transfer=True,
)

// Set your secret key: remember to change this to your live secret key in production
// See your keys here: https://dashboard.stripe.com/account/apikeys
\Stripe\Stripe::setApiKey("sk_test_BQokikJOvBiI2HlWgH4olfQ2");

$refund = \Stripe\Refund::create(array(
  "charge" => "{CHARGE_ID}",
  "reverse_transfer" => true,
));

// Set your secret key: remember to change this to your live secret key in production
// See your keys here: https://dashboard.stripe.com/account/apikeys
Stripe.apiKey = "sk_test_BQokikJOvBiI2HlWgH4olfQ2";

Map<String, Object> params = new HashMap<String, Object>();
params.put("charge", "{CHARGE_ID}");
params.put("reverse_transfer", true);
Refund refund = Refund.create(params);

// Set your secret key: remember to change this to your live secret key in production
// See your keys here: https://dashboard.stripe.com/account/apikeys
var stripe = require("stripe")("sk_test_BQokikJOvBiI2HlWgH4olfQ2");

stripe.refunds.create({
  charge: "{CHARGE_ID}",
  reverse_transfer: true,
}).then(function(refund) {
  // asynchronously called
});

// Set your secret key: remember to change this to your live secret key in production
// See your keys here: https://dashboard.stripe.com/account/apikeys
stripe.Key = "sk_test_BQokikJOvBiI2HlWgH4olfQ2"

params := &stripe.RefundParams{
  Charge: "{CHARGE_ID}",
  Transfer: true,
}

refund, err := refund.New(params)

Assuming this is a full refund of the same $10.00 charge as above:

$10 goes back to the end customer
The Stripe fees of $0.59 are refunded to the platform
The transfer of $8.77 is reversed from the connected account to your platform
The end customer, platform, and connected account all have net cost (or gain) of $0

When not refunding a full amount, a proportional amount of the transfer is reversed to cover the refund.

Collecting platform fees

Flow of funds with fees

Issuing refunds

Further reading