#Mist
outer dirge
wanton belfry
Hi 👋
More than one destination is a Separate Charge & Transfer situation. You create the charge separately and then transfer funds to all the Connect Accounts involved.
dapper hearth
Right so it has to be a transfer, the only reason I we looked at destination charges is because the doc says if no balance exists to cover the refund then it will attempt to re-coup the money from their external bank and if that fails it will go into a negative balance
Is that a feature we can benefit from if we do transfers and then do a transfer reversal instead of refunds? I assume transfer reversal is the way to handle refunds for the above use case?
wanton belfry
You wouldn't do a transfer-reversal instead of refunds you would create the Refund with the reverse_transfer parameter set to true to reverse the funds to the Connect Accounts
The doc I link has a whole section on refunds and reversals: https://stripe.com/docs/connect/charges-transfers#issuing-refunds
dapper hearth
Yeah just reading the refund section, it says I have to do transfer reversal manually, doesn't seem like I can use reverse_transfer flag on the refund for this use case
wanton belfry
Oh, right. Yeah SC&T does require manual transfer reversal because the Charge & Transfers are separate
Sorry about that.
So you would want to code those actions to take place together
dapper hearth
Right I guess this is the way to go, anyway to protect ourselves if the merchant account doesn't have enough balance for the reversal?
wanton belfry
Yes. Ultimately since you (the Platform) are the ones making the charge and therefore the refund you will need to be able to cover the transfer. But you can debit Connect Accounts to recoup the balance.
https://stripe.com/docs/connect/account-debits
dapper hearth
Alright thanks for your help
wanton belfry
Happy to do it, have a great weekend. 🙂
dapper hearth
hey sorry one more question
We are using express connect accounts and wanted to know do we need to verify their bank account separately or is it automatically verified as part of their onboarding process? This is to ensure we can safely place a charge (in case of recouping money for refunds) as mentioned above
wanton belfry
Their bank account is verified by Stripe if they provide those details during the onboarding process.
dapper hearth
That's a relief, exactly what I wanted to hear, thanks!