#surgical - Connect Charges

1 messages · Page 1 of 1 (latest)

full stagBOT
solid quail
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Hi 👋

Application fees are only for charges on Connect Accounts. When you charge a customer directly on your platform account that entire charge should be your revenue

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Can you explain your integration a little more so I can understand why this isn't the case?

radiant copper
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Sure - so we're in the ticketing business. let's say a customer ABC uses stripe connect. A patron buys a ticket for $10. We calculate application fee of $1, so the cutomer makes $9, and we collect $1. Our revenue is equal to application fee

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let's say customer XYZ does not use stripe connect, so the charge goes against our platform account. A patron buys a ticket for $10. We send this customer $9, and we keep $1. We have to store this $1 amount somewhere, instead of immediately collecting this as revenue. We end up with making the same $1, but it's difficult for us to track

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In a world where everyone was on stripe connect, this would be easy to track revenue, because you could jut sum up the application fee

solid quail
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Yeah unfortunately that sounds like basically doing Connect type charges without using Stripe Connect.

radiant copper
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What about this - when you make a charge on a platform account, is possible to transfer the $1 immediately to some other bank or some place to keep revenue?

solid quail
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So, to Stripe, that's all your money.

radiant copper
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like a transfer, i understand thats also a thing thats only on stripe connect?

solid quail
radiant copper
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I see - you mean just becoming our own stripe connect account

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so that we end up with no direct platform charges

solid quail
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Either that way, or the other way around. Some platforms create different Connect Accounts to send different funds to different banks so that's another approach you could take