#ludo9264
elder crest
silver sparrow
Hello, happy to help. To be clear, the idea is having one Stripe account at the top, regional accounts for each country that you operate in, and then presumably connect accounts for each driver? Or are you structuring this differently?
azure junco
Hi @silver sparrow , thanks! Let's make a practical example. We operate in Italy, Greece. We have a parent company Stripe account, but also we were getting ready and opened up subsidiary Stripe accounts for each country. However, we soon noticed that if we want to use different country-based Stripe accounts for users who are accessing our services in Italy and Greece (via the same app), we then "save" payment methods and wallets only for that specific country, and it becomes more complex/messy if the same users ends up using our services in the other country in the future. FYI: Our users are tourists.
So we saw the opportunity of processing all payments with the parent company (i.e. regional Stripe account for the whole Europe), while we issue each tax receipt to the end user (created by us in accordance to local laws) using our subsidiaries in each country where we operate. This would mean in a nutshell that all transactions are passing through the main Stripe regional account, but funds would then need to be funneled to the relevant subsidiary bank account based on revenue recognition. I assume this could be done in 2 ways:
1 - We make a manual reconciliation at the end of the month. At this point the parent company will have received the payments from the Stripe account, and can simply make bank transfers to the subsidiaries according to the finally realised revenue split
2 - We make the split automatically via Stripe, in this case I guess Stripe needs to recognise for each payment if it shall be assigned to one subsidiary or the other.
But if you reckon that the approach of processing all payments using only 1 account is WRONG, please feel free to let me know and also clarify how large ride-sharing or food-delivery companies do it in Europe.
silver sparrow
Hey just a heads up, this server is pretty busy so I am pulling in a colleague to help you. They should be able to help soon
vestal inlet
Hi there 👋 taking a look.
Sounds like there are a couple options here.
Processing all transactions through a single account sounds technically viable (unless your testing of this approach has led to scenarios that don't work well for you). So if splitting the funds on your end after they've been paid out from Stripe is a valid approach for your business, then this sounds feasible.
If you're using Connect, you can store customer payment method details on your Platform account and then clone them down to your Connected Accounts. Allowing your customers to use their payment method across all of your subsidiaries.
https://stripe.com/docs/payments/payment-methods/connect#cloning-payment-methods
You could also use Connect to process all payments on your Platform account (your larger overarching Stripe account) and then split those funds within Stripe amongst your regional Stripe accounts.
Do you have a preference on how you would like to structure things from a business perspective? I can help map that to the possible paths that we have available.