#Jonathan_VSS
rotund glacier
The funds from the destination charge will come from your account's (Platform) Stripe balance. When you refund the payment - you should pass in reverse_transfer=true [0] so that the refund will automatically reverse the transfer from the original charge for you
[0] https://stripe.com/docs/api/refunds/create#create_refund-reverse_transfer
patent berry
We didn't have that reverse_transfer in our code. I thought someone says the details from the destination charge will be use to reverse the amount? So meaning, we keep paying our customers refunds from our own balance?
rotund glacier
for a destination charge, the charge always occurs on the platform account - https://stripe.com/docs/connect/destination-charges#flow-of-funds-app-fee. A transfer is created to move funds to the connected account.
So when creating a refund, you should also pass in reverse_transfer=true
patent berry
Oh my. So the Stripe is not reversing it even it was destination charge unless that attribute reverse_transfer exist? Is there anyway we can force reversal? The main issue if the connected account has no balance. Is there any suggestion what process we can do?
patent berry
It is Standard..
rotund glacier
we strongly don't recommend destination charges for use with standard accountsfor this exact reason
are your connected accounts and your platform accounts all in the same region?
well, even if they're in different regions, i guess it doesn't really matter at this point. You need to retrieve those funds from your connected accounts some other way. You can either invoice them outside of Stripe via some other method. Or alternatively, what i've seen some platforms do is that they create a Customer for the connected account, and ask the connected account to add a PaymentMethod so that you can charge that payment method to retrieve those funds
toxic stormBOT
patent berry
Yes we have customer for the connected accounts since they have separate subscriptions. That might work for us (hopefully)..
Last question, how about for dispute. What should we be doing same process just charge it to connected account through customer?
We have all this for 3-4 years - I think the payroll team just seems off that they realized it. So this is really a big issue for us now. Ugh.
rotund glacier
just keep in mind that if you charge the "customers", that'll incur Stripe fees also, so you need to bake that into how much you're charging them when you're recouping for the refunds
patent berry
How about the refund through the Stripe website which the customer service process. Is there something have missed too?
rotund glacier
it's the same thing for dispute i feel
what do you mean by refund through the Stripe website which the customer service process
what Stripe website are you referring to?
patent berry
I mean the dashboard.stripe.com - if a customer request for refund, the customer support goes to our dashboard.stripe.com and find that payment which has destination charge and do refund. But it seems like it is also getting from our platform and not reversing from the connected account.
The other refund we have is within our APP that calls the Refund API which we didn't have the reverse_transfer attributes (from the original issue)
rotund glacier
it depends if they selected the reverse transfer checkbox
but with customer support, if they weren't instructed to do so, likely it wasn't selected
you can always check by retrieving the refund to see
btw, i'm not sure what your policy is, but if you intend to refund the application fee - https://stripe.com/docs/api/refunds/create#create_refund-refund_application_fee
remember to calculate that in too when recouping losses (if applicable)