Vish

[stable cape]

What do you already have set up currently? Are you using direct charges? destination? What kinds of connect accounts?

[warm geyser]

Direct charges with standard account

[stable cape]

Gotcha

You'll likely want to switch over to using Separate Charges and Transfers (https://stripe.com/docs/connect/charges-transfers) and starting using Express/Custom accounts instead of Standard Accounts. Separate Charges + Transfers gives you complete control over how the funds you received from a purchase are transfer (so you'd create the Transfers that send 40% to the seller and 50% to the vendor)

[warm geyser]

The problem is that in this case we will become the merchant of record right?

[stable cape]

You can still have a connect account be merchat of record if you use on_behalf_of (https://stripe.com/docs/connect/charges-transfers#on-behalf-of)

[warm geyser]

Alright thanks

How about using Separate Charges and Transfers with Standard Account?

[stable cape]

It's not something we really recommend - with separate charges and transfers the chargeback/dispute liability falls to the platform (with direct charges liability is on the standard connect accounts). This can cause some friction since you can't prevent Standard connect accounts from paying out (making it difficult to prevent fraud) and your standard connect accounts will also have a confusing dashboard experience since they won't actually see charges happen directly on their account

[warm geyser]

Can something like transfer be implemented in this case with direct charges and standard account?

We already have quite a few customers with our current architecture and we do not want to change it

[stable cape]

No, that won't work - a platform can only transfer funds to it's connected accounts, and with direct charges w/ an application fee the majority of the funds go to the connect account (which can't transfer the funds to other connect accounts)

[warm geyser]

Lets say if we take 60% in the above scenario?

and then transfer 50% to vendor

[stable cape]

It's technically possible, but it's still not something I'd recommend - while the liability is on the standard account, it's on you (as the platform) to claw back the appropriate funds from the vendor

There may be other risk-related implications as well (I'm not super well-versed in this, but I'd definitely recommend checking with support https://support.stripe.com/contact to see what they think)

[warm geyser]

Is tranfer available through Stripe UI?

that our connect accounts can use?

[stable cape]

No, your connect accounts can't transfer funds to each other at all

Only you (as the platform) can create transfers

[warm geyser]

ok, can they transfer to anothe rbank account?

So they can have two accounts

one their and one vendor

and we can let them know how much needs to be transferred to vendor

So will not be in every transaction

but it can be every month

[stable cape]

We don't allow you to have multiple payout accounts in the same currency - this would only work if the two payout accounts were for different currencies (which I assume you don't want)

[warm geyser]

So I cannot add another account of same currency here?

[stable cape]

Yeah as far as I know you can't add another account that would be used for payouts

[warm geyser]

https://stripe.com/docs/api/external_account_bank_accounts/create

[stable cape]

That's only for custom accounts - you can't use that with Standard accounts

[warm geyser]

ok, it seems like there is not much we can do here if we want to stick with the current infrastructure

Is Stripe Tax possible in Custom/Express accounts?

[stable cape]

Do you mean Stripe Tax or Tax Reporting?

Assuming you mean Stripe Tax, it doesn't work for on_behalf_of, but does work without it for Express + Custom

[warm geyser]

Thanks