Lukasz

[tiny pivot]

hi! well you wouldn't see anything on the connected account if you're not also using transfer_data

it's not really a documented integration to use only on_behalf_of that way. Your options are :

• use Direct Charges so the payment processes on the connected account and all objects like PaymentMethods etc live there
• use Destination Charges so the payment processes on the platform and the connected account only receives a transfer of money to them(you can use on_behalf_of to brand the payment as coming from the connected account)

https://stripe.com/docs/connect/charges

since you're using Standard accounts it seems to me like what you want are Direct Charges, i.e. the default integration. https://stripe.com/docs/connect/enable-payment-acceptance-guide

[minor rain]

Oh, I get it. So the on_behalf_of is not sufficient on its own. We have also vendors on marketplaces, so we'll need to transfer the amount for their products to their connected accounts.

So I think I need to use the destination charge, right? And:

• set the on_behalf_of
• transfer the commission to the marketplace owner
• transfer the rest of the payment to the vendor

[tiny pivot]

hmm, so the payment splits three ways or two?

i.e customer pays $10. Who does that go to? if it's like $1.23 to the platform(marketplace owner) and the rest to the connected account(vendor) and then that's just an normal Destination Charge like the example at https://stripe.com/docs/connect/destination-charges#flow-of-funds-app-fee

overall it's a very normal and well documented setup. But note we don't recommend by default using Destination Charges for Standard accounts — you as the marketplace own liability for refunds and disputes, and the connected account will see no details of the end-customer or the payment in their own account, they only see the Transfer you sent them. That may or may not be fine or what you want, and it does work, you just need to be sure you understand that

[minor rain]

Yes, something like that, with multiple vendors as well. Respective amounts are transferred to connected accounts of vendors and the commission amount should go to the marketplace owner.

But we also want to make the marketplace owner the business of record. So in that case I can't use standard accounts?

[inland shoal]

Hi! I'm taking over this thread.

with multiple vendors as well
You mean that one payment could be split to multiple vendors? In that case you should use Separate Charges & Transfers, instead of Destination Charges: https://stripe.com/docs/connect/charges-transfers

But we also want to make the marketplace owner the business of record.
Using on_behalf_of will make the connected account the merchant of record. But if the payment is processed on the platform (which is the case for Destination Charges and Separate Charges & Transfers), then it's the platform who needs to handle refunds/disputes.

[minor rain]

Hi! Yes, I confused the naming here, but we're using the "Separate charges and transfers" setup.

Okay, so to sum it up: apart from using the on_behalf_of I also need to create a transfer to that same connected account (the marketplace owner). Am I correct?

[inland shoal]

With Separate Charges & Transfers:

• First you create the payment on the platform account. You can set on_behalf_of if needed, so that the connected account is the merchant of record.
• Then, once the payment is successful, you create Transfers to send the funds to the connected account (it can be Standard or Express accounts)
• And in that scenario, your platform is responsible for managing refunds/disputes