travisburgess.

[haughty tulip]

The funds flow sounds like Separate Charges and Transfers.
https://stripe.com/docs/connect/separate-charges-and-transfers#issuing-refunds

The payment was created by platform so payment objects are owned by the platform. Any refund would also be initiated by the platform. Connected accounts can't issue refunds for the payment objects they don't own

Hence, the refunds would be issued from the platform balance. If you want to reverse the funds you sent to the connected account, you can reverse transfer
https://stripe.com/docs/connect/separate-charges-and-transfers#reversing-transfers

If connected account doesn't have enough funds, it might get covered from connected reserve balance if you have it enabled
https://stripe.com/docs/connect/account-balances#understanding-connected-reserve-balances

[iron flame]

Thank you hanzo