#instanick
viral dune
It's possible with Standard connect, but we don't recommend it - it's difficult to scale as you add more connected accounts, liability (who is in charge of disputes/refunds) gets hazy
slate star
Thanks! What's difficult about scaling this model? The number of connected accounts? Is it reasonable to take this approach and move to custom once we've reached some amount of transaction volume?
viral dune
Sorry let me correct myself - scaling is usually an issue in a slightly different scenario (if you wanted to do direct charges with custom/express accounts). But really for your scenario the liability is the bigger problem - you (as the platform accepting payment) are the one liable for chargeback but for standard accounts you can't really prevent your accounts from manually paying out their funds to prevent fraud and you can't charge them for any chargeback related feed through account debits (which don't work with standard)
Do you have a specific reason for wanting to do standard w/ separate charge + transfer?
There are some reasons where it makes sense to do this, but it really depends on your situation and I wouldn't recommend it for the vast majority of people
slate star
We're a startup and the work involved to manage AML, etc will be a lot of work.
We'd like to accept payments on behalf of customers before they've connected their account. Once they've connected their account, then they will be able to receive the funds. If they never complete the account setup, we could refund to the buyer.
If I understand correctly, we're exposed to even more liability with express and custom setups.
viral dune
It's more liability w/ express + custom (because of negative balances https://stripe.com/docs/connect/account-balances#accounting-for-negative-balances) but you know have to be responsible for preventing fraud and not having control of your standard connect accounts' payouts
slate star
Thanks, if I understand correctly, we have some control over payout schedules to connected standard accounts: https://stripe.com/docs/connect/bank-debit-card-payouts
For example, instant payouts. Is that correct?
viral dune
You have some limited control here if you have controlled by single platform standard connect accounts
but you still can't prevent those accounts from creating additional manual payouts on top of that if they choose to
slate star
And the main risk with accepting payments on our customers' behalf and transferring the funds once they've created a Standard connect account with us is that we assume the risk of fraud for these charges? If I understand correctly, this risk would still exist in Custom or Express?
viral dune
Yup that's right - and while the risk would still exist with custom or express you would have more power to manage these accounts/take action (you can claw back fees using account debits, you have compelte control over their payout schedule)
blissful moatBOT