#sanjeewa
wheat otter
sly raptor
Could you share what type of charges are you using? Direct Charges, Destination Charges, or Separate Charges and Transfers?
obsidian veldt
It is a Direct Charges, customer will pay connect account
sly raptor
If platform performs a refund on Direct Charges, the default will be platform keeping the application fee and refund the customer full amount as refund_application_fee is default to false. Connected account will lose the application fee.
If refund_application_fee is set to true, customer will still return full amount but connected account won't lose the application fee since it was refunded
I'm not too sure why it meant by refunding application fee back to customer. Customer will always receive the amount that's been refunded with no knowledge about application fee
It's up to the platform to decide whether they want to keep the application fee
obsidian veldt
"Refunds an application fee that has previously been collected but not yet refunded. Funds will be refunded to the Stripe account from which the fee was originally collected.
You can optionally refund only part of an application fee. You can do so multiple times, until the entire fee has been refunded."
sly raptor
What is your question here?
If a customer is charged $10 and the application fee is $1, connected account will keep $9 and $1 will go to the platform. During refund of $10, the customer will be refunded with $10. By default, application fee is not refunded to connected account, so connected account will lose $1 in this case as they only have $9 (connected account received) - $10 (refunded to customer) = -$1
If platform decides to return the application fee, then $9 (connected account received) - $10 (refunded to customer) + $1 (platform returns application fee) = $0
In any case, connected account doesn't keep any application fee since the full amount has been refunded to the customer
obsidian veldt
Thank you . it is clear
sly raptor
No problem! Happy to help 😄