#whymatter
feral pagoda
halcyon wharf
I think we will use destination charges. Because we will have a selling user and a buying user and the platform is not transparent
azure iron
this is normally the way to issue refunds for destination charges https://stripe.com/docs/connect/destination-charges#issuing-refunds
halcyon wharf
Okay and what happens if the seller already received a payout and has not enough funds in his account to cover the refund?
azure iron
just double checking something here, please bear with me
you can take a look at this support guide https://support.stripe.com/questions/reserves-for-connect-platforms-and-connected-accounts
halcyon wharf
Sorry for the delay. I had to dig into the documentation. Hmm, so that means that if the seller can not cover the refund, we, as the platform, cover the refund?
nova bane
yes
halcyon wharf
Okay, and is there any way to freeze the funds on the seller's connected account until we know if a refund is required?
Or alternatively manage the payouts completely on behalf of our sellers
nova bane
Okay, and is there any way to freeze the funds on the seller's connected account until we know if a refund is required?
Nope AFAIK
alternatively manage the payouts completely on behalf of our sellers
you can create payout reversal (if this applies to your use case)
hhttps://stripe.com/docs/connect/payout-reversals
Or, you can create negative balance to the connected account:
https://stripe.com/docs/connect/account-balances#accounting-for-negative-balances
Or, you hold funds on the connected accounts before proceeding to payout the funds:
https://stripe.com/docs/connect/account-balances#holding-funds:~:text=Keep funds in an Express or Custom account’s balance before proceeding to pay out the funds to a bank account or debit card
halcyon wharf
So "hold funds on the connected accounts" sounds like what I need. However, I do not fully understand how it works. If I (as the platform) set the payout schedule for a connected account to "manual" then I should be able to hold the funds in the connected account for a certain period of time right?
But if the owner of the connected account opens his dashboard, he can change this setting again to automatic?
nova bane
You can disable your connect Account ability to update their payout schedule at https://dashboard.stripe.com/test/connect/accounts/acct_.../settings
halcyon wharf
Actually this is what I am looking for. However I don't have this setting
nova bane
Could you please share the connected Account Id acct_123 ?
halcyon wharf
sure: acct_1MPrpF4FLprDFAjs
nova bane
thanks for sharing, let me check
That account is an Express Account, so you can't prevent them from editing their payout schedule
https://stripe.com/docs/connect/accounts#express-accounts
As a Platform you can manage it, but they can still override it in their dashboard
But for Standard Accounts you can disable the payout controls like shown in the screenshot I shared above
halcyon wharf
And for Custom Accounts?
nova bane
Custom Accounts don't have access to Stripe Dashboard
https://stripe.com/docs/connect/accounts#custom-accounts:~:text=User can access the Dashboard%3F
the platform account fully manage their accounts:
https://stripe.com/docs/connect/accounts#custom-accounts:~:text=A Custom Stripe account is almost completely invisible to the account holder. You—the platform—are responsible for all interactions with your user
halcyon wharf
Okay thank you very much. I just tested the express dashboard with your demo application https://rocketrides.io/ and it seems to me that an Express Customer is not able to change the payout settings at all. Can you confim this?
stiff blaze
correct
halcyon wharf
Ah well that solves the problem 😄
halcyon wharf
Okay, one last question, when choosing manual payout and I exceed the times specified on this page: https://stripe.com/docs/connect/account-balances#holding-funds stripe will issue an automatic payout, or is this just related to "Hold funds in the platform balance"?
stiff blaze
as far as I know we don't automatically pay it out out but we might reach out to you directly to enquire why you're doing that since it introduces regulatory problems