#Mist
native lily
rotund turtle
Hello, looking in to this. If I remember correctly, you can still refund the payment at that point. You can still pull $5 from that account as long as they have at least $5 in their balance, even if the original $5 from the charge was sent to them. If they don't have the funds to refund, you would be in the realm of getting money back from them otherwise, for example you can make sure to pay them out $5 in future.
It is also possible to debit a connected account under certain circumstances, otherwise you can just keep a payment method of theirs on file and charge it as appropriate https://stripe.com/docs/connect/account-debits
I am having a hard time confirming the part about still being able to refund in our docs but will reach out to my colleagues for help
hollow cedar
Yes please that would be great
Our use case is that after we collect payment, we will send the payout to the connected account
I believe the payout is on a daily basis so the concern is what options do we have if the payment has reached their bank
We are using the express method which for the onboarding link only collects bank details but no card details to keep on file if we had to charge when no funds exist
Also would sending an invoice be an option to the sellers for paying back the refunded amount?
rotund turtle
Right, in that case you would be able to debit their bank account, to get card details to charge you would collect them like normal for a payment: create a Customer and PaymentMethod object for them and charge that card with a PaymentIntent
And at that point you could also just send them an invoice for them to pay, that would also work.
hollow cedar
I see you mentioned that we can debit their bank account? That would be even better, is there a link to a documentation how we do that for our connected accounts?
rotund turtle
Yes we lay out the requirements in this section of the doc I linked to https://stripe.com/docs/connect/account-debits
And apologies, did not reach out to my colleagues earlier about the overarching refunds vs payouts question. Doing so now and will be able to get back to you soon.
Hello, apologies for the delay. It looks like I was originally correct. Even if the original funds were paid out, Stripe still attempts to reverse the transfer of funds to the connected account. This will succeed as long as they have that amount of funds in their balance, otherwise you get in to the territory of debiting them or retrieving the funds otherwise https://stripe.com/docs/connect/destination-charges#issuing-refunds
hollow cedar
Ok thanks, so just on that last point, will Stripe then attempt to retrieve the funds from their external linked bank account? Or does it now fall on to us?
bleak sapphire
Hello 👋
Taking over as Pompey needs to step away soon
What kind of connected accounts are you working with here? Express or Custom?
hollow cedar
Express
bleak sapphire
Gotcha, yeah in that case Stripe will attempt to debit their external bank account up to maximum allowed attempts but ultimately the negative balance responsibility would fall on the platform
https://stripe.com/docs/connect/account-balances#accounting-for-negative-balances
hollow cedar
Yeah I think we will get negative balance issues as our Sellers want their payout quickly but if Strip does attempt a debit from their external account then it gives us some re-assurance
if that then fails, we can issue an invoice and chase
Is it an asynchronous operation debiting an external account? In the sense that we won't know immediately after making the API call but have to wait and rely on webhooks to determine if the debit succeeded?
hollow cedar
Ok great thanks, I think we have all the info proceed for now. Thanks for all your help
bleak sapphire
NP! 🙂 Happy to help
Have a good one