#chrisgrande - destination charges
calm raptor
glass garnet
Stripe has some percentage hold to cover disputes, the transactions appear as "Reserved Funds".
hollow crown
👋 stepping in here
If the app fee you are taking is less than the processing fees then it will be normal that you have a negative balance on your platform.
However, there shouldn't be a "reserve" per-say. That would be if the Connected Account had a negative balance.
glass garnet
The application fees cover the Stripe processing fees
hollow crown
Do you have a charge I can look at? Are you sure your account doesn't have a Risk Reserve in place?
To be clear, a Risk Reserve is different than a Connect Reserve.
And isn't something that we can really help with here as it has to specifically do with the Risk evaluation for your account.
You would need to talk to our Support team (https://support.stripe.com/contact/login) if you want to discuss an account Risk Reserve.
glass garnet
hollow crown
Toss me that Charge ID if you don't mind
glass garnet
The pi_?
hollow crown
Yep that works
glass garnet
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hollow crown
Yep so this is due to what I stated above.
We describe how these reserves work here: https://support.stripe.com/questions/rolling-reserves
So you'll want to chat with our Support team about your account and if there is anything you can do to get this reserve removed.
We can't help with that here as we focus on helping developers integrate the API
glass garnet
Yes, but nothing I could find talked about when they are used with destination charges, In the scenario I described. Would the correct API implementation be to not use them and to funnel the funds directly to the platform, instead of split at charge time? I do have a couple lines open with support as well.
hollow crown
You aren't doing anything wrong with regards to destination charges. If you have a Connect use-case you can't just not transfer the funds to the Connected Accounts, right?
Overall having a negative balance for a short time on your platform isn't a big deal.
What you want to focus on is getting the reserve removed.
Then you won't have a negative balance on the platform since you are taking a larger application fee than you are paying fees.
glass garnet
Well I could transfer them later, I'm already setting the connected accounts to payout manually, so I control that aspect. This is for an events ticketing system, so they don't payout until after the event occurs. It made sense, when designing it, to do the split at purchase time instead of later, just since it seemed cleaner. But the testing mode has no concept of the "risk reserve" so I never saw it.
hollow crown
Gotcha.
Then yes, if you so desire you can transfer later. This would be the Separate Charges and Transfers flow described here: https://stripe.com/docs/connect/charges-transfers
So basically you would remove "transfer_data": { "destination": "acct_xxx" },
From your Checkout Session creation
Then later on you would create Transfers (https://stripe.com/docs/api/transfers/create) to move the funds to the Connected Accounts
Note: this flow is only supported for Connected Accounts within the same region as your platform. So if you are going to onboard any non-US connected accounts then this flow won't work.
glass garnet
My reasoning to move to this is I'm just not sure what happens, for example, with the platform in the constant negative, and it gets a charge back for example, what it will attempt to do. That's what has me worried about the negative. Nothing is really clear on it, lol. My normal refund flow, currently, reverse the connected transfer. But with the charge back, not sure.
Everything is in the US
hollow crown
As long as your platform balance doesn't go too far negative nothing different will happen really. If you go too far negative, then we will hold refunds in pending until your balance is repaired.
That "negative amount" is specific to your account and if you want more details on that you would talk to Support
glass garnet
Yea, it will go very negative at the current rate, lol For the rolling period. Very is relative, but 10s of ks.
I had tested that code change and it did work in test mode. Now if I decide to do this, lol, I have some 200+ transfers already to the connected account. I can reverse them either via the API, or the web interface. Is there an easy way to reverse them all in one shot with API or do I just have to loop thru them, or just clicking in the UI if I'm not in the coding mode for this one off?
glass garnet
There is no negative inpact in reversing that many?
hollow crown
No as long as you avoid rate limits: https://stripe.com/docs/rate-limits
Which with that amount you should be fine overall
glass garnet
Yea it's only about 200 or so at the moment, are transfer reversals mostly instant since it looks to be just balance adjustments across stripe accounts? My testing seemed that way — but wanted to make sure.
hollow crown
Yep
glass garnet
Thank you, I think I'll do that. I had proposed this to support but with the turnaround being 24 hours, my transactions are only going up, lol. Maybe they will remove my reserve, but, live events seem to spook every payment processor, lol. Been around for 28 years, maybe that will help my case. 😆
hollow crown
Yeah once you have some processing history it will help.
Definitely higher risk evaluations the newer the account.
Good luck!
glass garnet
Thank you!
Ohh — is there a quick way to loop thru the transfers for a specific connect account?
hollow crown
Yep you can list by account ID: https://stripe.com/docs/api/transfers/list#list_transfers-destination
glass garnet
Oh right, perfect — thanks!