If you’re using Connect and Custom or Express accounts, your platform is ultimately responsible for any disputes that occur. For payments created on Standard accounts using direct charges, those accounts are responsible for disputes and any funds are withdrawn from their balance—not the platform.
In the event of a dispute where a payment was made directly on an Express or Custom account, its balance is debited. If this fails, the platform is ultimately liable for the disputed amount and associated fee. If the connected account turns out to be fraudulent, it’s unlikely our attempt to debit the card issuer account will be successful and the required amount and fee is then deducted from the platform.
If the disputed payment was created through the platform using destination charges or separate charges and transfers with or without
on_behalf_of, the platform account is automatically debited for the disputed amount and fee. When this happens, the platform can attempt to recover funds from the connected account by reversing the transfer either through the Dashboard or by creating a transfer reversal.
If there is a negative balance on the connected account, Stripe attempts to debit its card issuer account only if
debit_negative_balances is set to