#Fahim
1 messages · Page 1 of 1 (latest)
What type of charges are you using? Direct charges, destination charges or separate charges and transfers?
Direct charges
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.
Application fee will always go to customer, but it's a matter whether the platform would let the connected account loses for the application fee.
when it comes to this scenario, what I(platform) want is to refund application fee of $1 to customer, can I refund it without connected account's involvement?
That's not possible as the charges is created on the connected account. Customer has no knowledge of the platform with direct charges as the liability is on the connected account
So is there a way we can make a refund from connected account which will also refund the application fee at the same time?
I mean will refund $10, then it will automatically make an application fee refund as well.
So i don't have to refund $1 separately
Yes, you can set refund_application_fee to true in refund request: https://stripe.com/docs/connect/direct-charges#issuing-refunds
so how does it work when it comes to a partial refund?
I mean when I want to refund $2 from connected account and application fee of $1 using refund_application_fee parameter?
👋 taking over for my colleague. Let me catch up.
Ok, sure
it works the same way as a normal refund
sorry I may misunderstood the question
you want to refund the whole application fee while refunding partially the charge?
so $10 payment, $7 to connected account, $3 as application fee.
so if I want to refund $5 from connected account and $3 application fee together, how can I get it done?
ok in that case you need to do this in 2 steps
you would first have to refund the customer
and then you would refund the application fee
as explained here
another example, I want to refund entire connected account amount which is $7, and only a potion of application fee which is $1(out of $3 application fee)
so in this case how to get it done?
this is also possible with the same scenario from above
so you mean to make a refund from customer first and then refund the application fee?