#AshMoore
solemn zephyr
south wyvern
It sounds like you're looking for Connect: https://stripe.com/docs/connect
tawny wadi
Does this mean —- the money can be split in half ?
Or does it mean
One account takes the money and send it to the other ?
south wyvern
Yeah it would mean 1 account takes all of the money and then half would be sent to the other account
tawny wadi
Oh ok
south wyvern
Funds have to settle on 1 account first
tawny wadi
Is it not possible to directly split in half ?
From the customer
Appreciate this help by the way
lucid perch
Question: in your description, is either "stripe a" or "stripe b" your company, or are they both clients?
south wyvern
Good question ^
tawny wadi
Stripe a & stripe b are both of my companies however the provide different services.
It’s easier to make the customer pay once, rather than twice
So it would make sense if they could pay once, and then split the payment
Through stripe
One is fees for sports classes and the other is software fees
lucid perch
It sounds like the most direct path would be to have, say, "stripe a" as the platform, and "stripe b" as a connected account - but unless they are actually separate business entities, it sounds like adding in unnecessary complications...
tawny wadi
Yes they are seperate business enormities
That’s why the income needs to be split
Just wondered if anyone has any ideas on how to go about it ?
Entities
lucid perch
depending on your location, there are a number of ways to process, but most involve a connected account,
south wyvern
Yeah what Gigstartr said allows you to do that. Behind the scenes the funds do settle on 1 account first before a transfer is made, but it shouldn't really make a difference since the funds are settling in the account balance first prior to the payout to your bank account
lucid perch
(location because there are some account transfer limitations)
tawny wadi
Uk based
south wyvern
Are both entities uk based?
tawny wadi
Yes both uk
south wyvern
You should be good then
Connect has a lot of choices involved with it though, so I do recommend you start reading some docs first. Let me grab some links for you
tawny wadi
The only problem I can see with letting funds settle in one account and then sending them over is
From my understanding in accounting terms …..The gross is seen as income, then when stripe fees are taken that is classed as paying for services
So if the money goes to one account and is then sent to another
It’s the same
lucid perch
Can be, BUT, I can propose one possible solution...
IF you set up"stripe a" as the platform, and "stripe b" as a connected account, AND...
...you process the payment as a "destination charge" to "stripe b", AND...
...your platform ("stripe a") charges an "application fee" to cover it's share...
...then, essentially, the monies both arrive directly on their respective accounts...
... you may need to thoroughly read the documentation to make sense of all that.
(NOT legal or accounting advice 🙂 )
south wyvern
I can't speak to the accounting portion of this, but GigStartr's suggestion works if you can use an Express or Custom account for stripe b
But if you already have 2 standard accounts it will be a bit different
Recommend starting here though: https://stripe.com/docs/connect/accounts
lucid perch
(I don't work for Stripe, so I can be more loose about giving advice, even possibly bad advice)
tawny wadi
What I am trying to achieve is
I have two businesses which do different things, but the customer needs to pay both companies at once…
If I put all the money through one company it will go over the VAT threshold although they both do completely different things and there is no need for them too
south wyvern
But to be clear there's not a way to create a charge and just split it into 2 pieces and have each settle on different accounts. You'd need to use Connect
tawny wadi
So hopefully that gives you a bit more understanding of my situation
lucid perch
Yeah, you're not likely to dodge a VAT threshold that way.
My understanding of EU regulations is one payment, one threshold. But you'll need an attorney/accountant for that.
tawny wadi
I have got legal advice on the two companies, and it wouldn’t be anything in terms of vat avoidance because they both do completely different things
But
Making them pay twice
Is just a ball ache
In terms of sales wise etc
When it could be done once
lucid perch
That's an annoying trade-off, yep.