#koldhielo
1 messages · Page 1 of 1 (latest)
Hello again! When you set refund_application_fee to true the full amount of the charge will be refunded. More details here: https://stripe.com/docs/api/refunds/create#create_refund-refund_application_fee
I recommend you try this out in test mode to get a feel for how it works.
You can use the 4000000000000077 test card in test mode to bypass your pending balance and make funds immediately available to play around with.
Oh I get it! So the application fee that I charge is basically going to stay within my platform, but this will refund the customer the full amount instead of the amount with fees deducted right?
I will have a play around in test mode when I get a bit of time 😊
Yes, that is correct, playing around with it will make it clearer as well.
Sorry, want to jump in one last time and clarify what I realize now was unclear wording on my part. Let's say you have a $10 charge with a $1 application fee. That means $9 lands on the connected account and $1 lands on the platform. Now let's say you want to refund it. If you don't set refund_application_fee to true then $10 will be refunded to the person who paid, but all $10 will come from the connected account's balance. The $1 application fee will remain on the platform. If you do set refund_application_fee to true then the $10 refund will consist of $9 coming from the connected account's balance and $1 coming from the platform's balance. Note that this is a simplified example that does not take into account Stripe fees.
Separately, if you want to do a partial refund, where the person who paid gets less than $10, that's when you set an amount when you create the Refund.
In other words, refund_application_fee does not impact the amount being refunded to the person who paid.
It only impacts where that refund comes from.
Thanks for clarifying. With that being said then, could I then refund the business the application fee that I charged through the Transfer object like so?
stripe.Transfer.create(
amount=application_fee_amount,
currency='gbp',
destination=connected_account_id
)
Yes you could but that is a separate request, instead I'd recommend that you set refund_application_fee to true on the refund creation request.
I didn't see this reply, this explains perfectly what I needed to know. Sorry I missed that!
No problem!
Whilst we're here, if issuing a refund to a customer, would Stripe also refund their fees alongside it?
Stripe does not return any fees on a refund, https://support.stripe.com/questions/understanding-fees-for-refunded-payments. If you have any further question on fees, I recommend that you reach out to our support team. They will be able to assist you better than I can: https://support.stripe.com/contact