canopus1io

[toxic yew]

Hi there

Good question, give me a min

Okay yeah confirmed that this just works. You can store it on platform with or without OBO (that is up to you and what info you want the customer to see) and then you can clone and charge on Connected Accounts with the mandate you already collected

[past tapir]

right, but my question is what is on_behalf_of used for with respect to SetupIntents?

[toxic yew]

It dictates the account that is the merchant of record for that SetupIntent/PaymentMethod. This is much more important for Cards, because you would need to use an EU Account for on_behalf_of if you are going to clone to the EU as the EU has SCA and thus you need to ensure that 3DS is correctly set up

[past tapir]

our Platform Account is an US Account, but we may have Connected Accounts in other countries using 3DS.

Is the Mandate the only thing that on_behalf_of is used for with the us_bank_account type payment method?

What is the "merchant of record" used for?

[toxic yew]

Mostly it doesn't do a whole lot here. It just indicates who the customer is going to be purchasing from -- so for instance in the Connections modal if you are using instant verification it would also have the name of the Connected Account if you use on_behalf_of. If you are going to clone to multiple Connected Accounts, then I would recommend not using on_behalf_of and just collecting the PaymentMethod on your platform

[past tapir]

Is there any liability/legal ramifications of having our Platform Account be the merchant of record for the SetupIntent/PaymentMethod vs having the Connected Account be the merchant of record?

we clone payment methods to the connect account and use Direct Charges, so my understanding is that for all payments, the Connected Account is the merchant of record. even if the Merchant of record for the SetupIntent is the Platform Account, is this correct?

[rotund plinth]

👋 Hoping in since bismark had to head out - give me a second to catch up

[past tapir]

No worries

[rotund plinth]

As far as I know there isn't any liability/legal ramifications, but I'm a developer so I'm not the best person to get a definitive answer on that. Even through the PaymentMethod was collected through the Platform, when we clone the PM + Mandate to the connected account we do so in a way that the connected account is free to use it

[past tapir]

1. does on_behalf_of play any role in currency with SetupIntents?
2. I also want to validate that I'm not going to have any issues with 3DSecure when we have our first customer that uses it. our platform account is US. so, we just need to make sure that when we do a SetupIntent with 3DSecure for EU for example, we need to pass on_behalf_of=<connected account from EU>

3. Then, is this payment method usable in any of our connected accounts from EU?

[rotund plinth]

I believe if on_behalf_of is used, we'll use the default currency for the connected account in whatever validation we need to do with the SetupIntent

and yes, you just need to make sure you are using on_behalf_of with a connected account in the EU - that should be enough to set up the card for future usage for your other EU connected accounts

[past tapir]

does that mean that for card type payment methods, we still need to use on_behalf_of if the connected account is using a different currency than our platform account(USD)

[rotund plinth]

I wouldn't think about this in terms of currency, but yes - for cards where SCA/3DS is important you do still need to pass on_behalf_of with your SetupIntent if you have connected accounts in EU countries

[past tapir]

Alright, cool, thank you so much for your help. I'll post again if I have further questions