Create subscriptions with Stripe Billing

If you’re building a platform, you can create subscriptions for your connected accounts’ customers, optionally taking a per-payment fee for your platform.

This example builds an online publishing platform that allows customers to subscribe to their favorite authors and pay them a monthly fee to receive premium blog posts from each author.

Decide between direct charges and destination charges

You can use either direct charges or destination charges to split a customer’s payment between the connected account and your platform.

If you want the connected account to be responsible for Stripe fees, refunds, and chargebacks, use direct charges. With this approach, customers won’t be aware of your platform’s existence because the author’s name, rather than your platform’s name, is shown on the statement descriptor. In our online publishing example, readers interact with authors directly.

Direct charges are also recommended if you’re using a Standard account.

If you want your platform to be responsible for Stripe fees, refunds, and chargebacks, use destination charges. In our online publishing example, customers subscribe to your publishing platform, not directly with specific authors.

Destination charges are also recommended if you’re using Express or Custom accounts.

For more information about the different types of Connect charges, see Charge types.

Use direct charges to create a subscription

To create a subscription with Charges associated to the connected account, make a create subscription call while authenticated as the connected account. Make sure to define the customer and the Price on the connected account.

Expand latest_invoice.payment_intent to include the Payment Element, which is needed to confirm the payment. Learn more about Payment Elements.

For an end-to-end example of how to implement a subscription signup and payment flow in your application, see the subscriptions integration guide.

curl https://api.stripe.com/v1/subscriptions \
  -u "
sk_test_4eC39HqLyjWDarjtT1zdp7dc
:" \
  -H "Stripe-Account: 
{{CONNECTED_ACCOUNT_ID}}
" \
  -d customer=
{{CUSTOMER_ID}} \
  -d "items[0][price]"=
{{PRICE_ID}} \
  -d "expand[0]"="latest_invoice.payment_intent"

Use destination charges to create a subscription

To create a subscription with Charges associated to the platform and automatically create transfers to a connected account, make a create subscription call while providing the connected account ID as the transfer_data[destination] value.

Expand latest_invoice.payment_intent to include the Payment Element, which you need to confirm the payment. Learn more about Payment Elements.

You can optionally specify an application_fee_percent. Learn more about collecting fees.

curl https://api.stripe.com/v1/subscriptions \
  -u "
sk_test_4eC39HqLyjWDarjtT1zdp7dc
:" \
  -d customer=
{{CUSTOMER_ID}} \
  -d "items[0][price]"=
{{PRICE_ID}} \
  -d "expand[0]"="latest_invoice.payment_intent" \
  -d "transfer_data[destination]"=
{{CONNECTED_ACCOUNT_ID}}

Additional steps before you create a subscription

To create a destination charge, define both the customer and the price on the platform account. You must have created a connected account on the platform. The customer must exist within the platform account. When using destination charges, the platform is the merchant of record.

You can use Stripe Billing to create subscriptions for your end customers to directly transact with your platform without involving your connected accounts.

This example builds a marketplace that allows customers to order on-demand delivery from restaurants. This marketplace offers customers a premium monthly subscription that waives their delivery fees. Customers who subscribe to the premium offering pay the marketplace directly and don’t subscribe to any particular delivery service or restaurant.

Create a subscription

To create a subscription where your platform receives the funds, without any money going to connected accounts, follow the Subscriptions guide to create a subscription with Stripe Billing.

Create separate charges and transfers

If you want to manually transfer a portion of the funds that your platform receives to your connected accounts later, use separate charges and transfers to pay out funds to one or more connected accounts. In our on-demand restaurant delivery example, you can use separate charges and transfers to pay out an affiliate fee to a delivery driver or restaurant who refers a customer to subscribe to the premium delivery service.

You can use Stripe Billing to create subscriptions to charge your connected accounts a fee for using your platform.

This example builds a gym management software platform that allows gym businesses to pay a monthly fee to use the software to manage scheduling and appointments for classes. The gym businesses pay the subscription fee, not the gym patrons.

The gym management software also facilitates one-time payments between the gym patron and gym business for each class that the gym patron enrolls in. The monthly subscription is between the connected account and the platform, which doesn’t involve the gym patron in the transaction.

In the diagram above, the gym business is the connected account and the gym patron is the end customer.

Create a Customer object to represent the connected account

If your connected accounts use Stripe to process payments for their end customers, they might have already created a Customer object for each end customer.

To successfully create a subscription for the connected account to pay a recurring fee to the platform, you must create a separate Customer object to represent the connected account.

In the gym example, the gym business uses Stripe to process one-time payments for its gym patrons. They already created a Customer object for each gym patron, but you need to create a different Customer object to represent the gym business itself. Create only one Customer to represent each business entity and don’t create a Customer to represent each owner, manager, or operator of the business.

Create a subscription for the connected account

To create a subscription where your platform receives the funds from your connected accounts, follow the Subscriptions guide to create a subscription with Stripe Billing. The Customer object involved in the transaction represents the connected account, not the end customer. In our gym example, the CUSTOMER_ID represents the gym business, not the gym patron.

Stripe creates event notifications when changes happen in your account, like when a recurring payment succeeds or when a payout fails. To receive these notifications and use them to automate your integration, set up a webhook endpoint. For example, you could provision access to your service when you receive the invoice.paid event.

Event notifications for Connect and subscriptions integrations

Here are the event notifications that Connect integrations typically use.

Here are the event notifications that subscriptions integrations typically use.

After you create your subscription, thoroughly test your integration before you expose it to customers or use it for any live activity. Learn more about testing Stripe Billing.