Jonathan_VSS

[urban temple]

Hi,
The connected account is responsible for Stripe fees, refunds, and chargebacks when using Direct charges or when you use on_behalf_of,
because the connected account becomes the settlement merchant.

I noticed that every refunds for a connected account, there's a transfer from the platform.
Can you give an example.

[copper garnet]

Hi @urban temple thank you for your prompt response. Example with my screenshots i have $197 refunded and when I look into the Payout it has transfer -$197. Does it mean it deducted our funds of $197 and been transferred to that connected account?

[urban temple]

Can you share the PaymentIntent Id?

when I look into the Payout
The payout of the connected account ?

Can you share its id too ?

[copper garnet]

Also I am not sure what's the difference for this two though, but here it is:

Payout
po_1MRQfLGiP4647d7uflb7mtgK
Payout for refund
po_1MWXrxGiP4647d7uXr7ADPOW

Looking at the logs, the paymentintent id is null, can I give you the charge id?

[urban temple]

Looking at the logs, the paymentintent id is null, can I give you the charge id?
Yes it can help

[copper garnet]

Here is the charge id: ch_3MQ9hUGiP4647d7u1X3JVQvs

[urban temple]

Thanks for sharing.
I miss explain this I think at the begining. For on_behalf_of the connected accounts becomes the merchant settlement for these:
https://stripe.com/docs/connect/destination-charges#settlement-merchant:~:text=When you use on_behalf_of%3A

but like any destination charge, the platform is responsible for refunds.

That why the charge ch_3MQ9hUGiP4647d7u1X3JVQvs exist in the first payout as a charge, and in the second payout as a refunded charge.

[copper garnet]

Ahuh! So basically nothing is wrong with the implementation? Even we normally call the refund for example:

refund = Stripe::Refund.create({
charge: '{CHARGE_ID}',
}

It will know already know based from charge it has on_behalf_of?

Is there other approach that we charge right away the connected account if there is a refund? Or this is really the workflow? The platform is in charge for refunds, and later on it will just got a transfer from connected account? What if the connected account has no balance to do that?

Also lastly do we need to check that reverse associated transfer if dealing for the connected account refunds?

[urban temple]

yes

[urban temple]

When using Destination Charges this is the flow.

Otherwise you need to use Direct Charge with Standard Accounts:
https://stripe.com/docs/connect/direct-charges

[copper garnet]

Thanks @urban temple ! Clears up the confusion! Just one last thing, is there a way to know if we have the connected refunded charge after refunds other than going in every payments and check the connection payout for refund? Thanks again.

[urban temple]

You can configure a Connect Webhook:
https://stripe.com/docs/connect/webhooks
and listen for charge.refunded https://stripe.com/docs/api/events/types#event_types-charge.refunded