When a user (a seller or service provider) signs up on your platform, create a user Account (known as a connected account) so you can accept payments and move funds to their bank account. Connected accounts represent your user in Stripe’s API and help facilitate the collection of onboarding requirements needed so Stripe can verify the user’s identity.
The three different types of connected accounts are:
- Standard account: A Stripe account controlled directly by the account holder (i.e., your platform’s user). A user with a Standard account has a relationship with Stripe, is able to log in to the Stripe Dashboard, can process charges on their own, and can disconnect their account from your platform.
- Express account: An account where Stripe handles user onboarding, account management, and identity verification. Your platform can manage payout schedules, customize the flow of funds, and control branding.
- Custom account: This account is almost completely invisible to the account holder and Stripe has no direct contact with them. Custom accounts require the most integration effort and are suitable for platforms who want to control the entire user experience.
After you fill out the platform profile, a connected account type is recommended to you. This recommendation is the most straightforward path for most users.
Capabilities define what your connected account can do and track whether they’ve met the verification requirements to do so. Connected accounts with the transfers capability can accept transfers of funds from your platform, while connected accounts with the card_payments capability can directly process payments without routing the funds through your platform. To know which capabilities Stripe recommends for your business model, refer to your completed platform profile.
Onboarding Express accounts
If you’re onboarding Express accounts, Stripe collects all the user requirements information for you (excluding any fields you choose to pre-fill). For instructions on how to onboard Express accounts, refer to Using Connect with Express accounts.
Onboarding Custom accounts
If you’re onboarding Custom accounts, Stripe can collect the user requirements information for you with Connect Onboarding. Create the connected account, providing any required fields you already have in the account creation request. After that, create an account link and redirect your user to that account link so they can provide the rest of the required information. Make sure to set up a webhook to collect any new requirements that become due.
Stripe recommends that you don’t build a completely custom onboarding flow. Updates to identity verification requirements occur as laws and regulations change around the world. If you’re building your own onboarding flow, you must plan on reviewing and updating onboarding requirements at least every six months to ensure you remain compliant. Some platforms create their own flow to collect basic requirements but use the Stripe-hosted form to collect edge-case requirements when initial verification fails. If you decide to build your own flow, start with Identity verification for Custom accounts.