#jkimling
wise iron
trim timber
What type of connect accounts do you have (Standard, Express, or Custom)?
long elm
Custom
trim timber
Are you using on_behalf_of?
long elm
Hmmm I don't think so? We don't explicitly use that parameter anywhere in our codebase. Do you mean when setting up custom connect accounts? Or when trying to configure settings?
trim timber
When accepting payments.
From what I see in the payment method settings, the connect payment method settings only apply to direct charges and on_behalf_of charges. Are you seeing the same description in your account?
long elm
Ah I see, yeah I am; sorry I missed that
trim timber
No worries at all
Hm let me look at a few things really quick then come back with a recommendation
long elm
Thanks so much!
trim timber
No problem. Also just to confirm, what type of payments are you accepting? I noticed you mentioned invoice template settings, so are you just sending invoices? Or is it subscriptions? Or 1-time payments with payment intents?
Or some combination of the above?
Also, if you're using custom accounts without on_behalf_of: https://stripe.com/docs/connect/destination-charges#settlement-merchant then I believe the platform's payment method settings are used
long elm
Mostly subscriptions
trim timber
Got it. So yeah if you're doing destination charges (the custom account recommended flow) and aren't using on_behalf_of then all those invoices will be created on the platform account with the platform as the settlement merchant. So, your platform's payment method settings will be used. You would need to change your platform's invoice template settings
long elm
Hmmm but the payment methods on my invoice don't match my platform's invoice template settings, they match the connect account. The attached screenshots are (1) platform invoice template payment method settings, (2) connect account invoice template payment method settings, and (3, 4) the invoice
trim timber
Can you share a sample invoice so I can see what you're doing?
Just the invoice id works
in_123
long elm
in_1MleCyPtV7KSXMacnw2KcXuH
trim timber
Oh
That's a direct charge
Which isn't recommended for custom accounts
So in that case the dashboard settings you initially were talking about are what you need to change
Or if you want to do it via the api: https://stripe.com/docs/api/accounts/update#update_account-capabilities
Those settings will control which payment methods are enabled on the account. Invoice template settings will then control which payment methods will show up on the invoices
However, unless you have a specific reason, I don't recommend doing direct charges on a custom account at all
long elm
Is there a reason they're not recommended? We basically have all of the use cases of direct charges and Custom accounts:
- Customers directly transact with your user, often unaware of your platform’s existence
- A single user is involved in the transaction
AND - A Custom Stripe account is almost completely invisible to the account holder (we don't allow our users to be changing settings of this kind in the Stripe dashboard)
trim timber
So here's a non-exhaustive list of pitfalls. Up to you ultimately:
Addressing disputes becomes increasingly difficult through the dashboard. Express account are unable to address disputes through their own limited dashboard, so it has to be done by the Platform. When a merchant is just starting out and only has a couple connected accounts, it’s fairly easy to check each account for the necessary charge and then address the dispute. However, as a business scales it is unreasonable and time-consuming to check every single account to find the right charge.
Platforms have to cover for negative balances of their Express/Custom accounts. Refunds for Direct Charges come from the connected account’s balance and Stripe fees (which are paid by the connected account for Direct Charges) are not returned, making it more likely for a connected account to have a negative balance. Platforms are responsible for the negative balances of their Express/Custom accounts, so whenever there’s a negative balance we have to hold a reserve from the Platform’s available balance.
These charges aren’t compatible with Radar, which is a major blocker for European accounts. A Platform’s Radar rules only apply to their own charges, not charges directly created on their connected accounts. This is a problem because Direct Charges are subject to the connected account’s rules but Express/Custom accounts cannot actually set their own Radar rules.
Platforms can’t easily get any metrics (like decline and conversion rates) that represent payments across all their connected accounts. Because this information is distributed across many accounts, it takes more work to gather all the data. Metrics are much easier to calculate and track when the Platform can access the information in one centralized place.
Email Receipt customization is limited. Email receipts that are sent for Direct Charges reflect the settings of the connected account. As a result, a Platform can’t make changes like opting to include a support phone number in the receipt since this setting is not available for connected accounts.
It can be difficult to predict expected fee behavior.