milan_90064-destination-refunds | Stripe Developers | Page 1

half fableBOT Nov 28, 2023, 6:42 PM

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flat timber Nov 28, 2023, 6:44 PM

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You would need to make sure that the Connect account has a balance at the time of the refund so that the transfer reversal goes through. As a Custom Connect platform, you are on the hook for negative balances on your connect accounts: https://stripe.com/docs/connect/destination-charges#issuing-refunds

Creating destination charges on your platform

With Connect, you can create charges on your platform account, take fees, and then transfer remaining funds to your connected accounts.

grave canyon Nov 28, 2023, 6:45 PM

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I don't think that answers my question. The refund is going through. The issue is that the refund is being split proportionally based on the destination charge.

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For example, pyr_1OGyevDFt6iTMCHHJoMu6TYr was originally for a refund of 51.20. However the payout shows that the merchant was only debited 50.87.

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We want the full 51.20 to come from the connected account.

flat timber Nov 28, 2023, 6:55 PM

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Is the difference coming from an Application Fee? Or something else?

grave canyon Nov 28, 2023, 7:01 PM

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I'm not using application fees. But when the original PI was created, I sent the majority to the connected account minus an amount for the platform.

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pi_3OF7WSDFt6iTMCHH1K2zc5tR shows 787.33 as the toal amount with a transferdata amount of 782.21.

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782.21 / 787.33 roughly equals 50.87 / 51.20

flat timber Nov 28, 2023, 7:07 PM

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So it looks like you're explicitly passing an amount when you create the Refund: https://dashboard.stripe.com/test/logs/iar_GO667Nl9o3aIJh

You would want to omit the amount if you want the refunded amount to be the same as the amount the customer originally paid

Stripe Login | Sign in to the Stripe Dashboard

Sign in to the Stripe Dashboard to manage business payments and operations in your account. Manage payments and refunds, respond to disputes and more.

grave canyon Nov 28, 2023, 7:08 PM

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We are doing a partial refund, but that's still not the issue. The issue is that whatever the refund amount is going to be - whether it's partial or full - we want it to come from the connected account. We do not want any of that 51.20 to come from the platform. Instead only 50.87 is being taken from the connected account leaving the platform to cover the rest.

flat timber Nov 28, 2023, 7:14 PM

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I assume that's because the balance of the Connect account couldn't sustain the full refund, no? Did you check balance before submitting the refund? That's generally a good practice, since you can only take what's already there

grave canyon Nov 28, 2023, 7:14 PM

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They have the funds.

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There were other transactions in the payout and the payout was far greater than the <$1 difference. Stripe is proportionality splitting the refund between the connected account and platform.

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Does the ReverseTransfer flag have anything to do with this?

flat timber Nov 28, 2023, 7:26 PM

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The reverse transfer flag will basically ensure that the tranfer you made to the Connect account gets reversed back to the platform, so if you're using that and the transfer to the connected account was less than the full charge amount, it's not surprising that the amounts are different. Does that make sense?

grave canyon Nov 28, 2023, 7:28 PM

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Kind of. You might need to dumb it down for me a little more (sorry for my ignorance here). So are we saying that if I flip that to false, then the connected account would be debited for 51.20 (ideal) instead of 50.87 (not ideal)?

flat timber Nov 28, 2023, 7:30 PM

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No, so all that parameter does is ensure that the transfer you made to the Connect account gets reversed from the Connect account balance to the Platform account balance. So if you made a transfer for only 50.87 when the charge originally succeeded, then the transfer reversal will only be for 50.87.

grave canyon Nov 28, 2023, 7:32 PM

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Oh. And the 51.20 to the payer is actually coming from the platform? So the platform is taking 50.87 from the connected account and adding the rest and giving 51.20 to the payer?

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I think it was explained to me that a chargeback comes from the platform's account as well. So when a dispute is initially created, we have to execute a reverse transfer from the connected account to the platform for the platform to recoup those funds. Is that right?

flat timber Nov 28, 2023, 7:40 PM

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yup, exactly

grave canyon Nov 28, 2023, 7:40 PM

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Fascinating

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So....if we want the full amount to come from the connected account, we'd have to do an additional reverse transfer to cover the rest.

50.87 in the original transfer + (51.20 - 50.87) in a reverse transfer from the connected account to the platform.

half fableBOT Nov 28, 2023, 7:44 PM

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flat timber Nov 28, 2023, 7:46 PM

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Correct

grave canyon Nov 28, 2023, 7:47 PM

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Whew. Ok. Got it now. Different than what I expected but at least there is a path forward.

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