#xkernel
broken sigil
hi there!
if you are using Stripe Connect, you have two main questions to answer:
- what type of connected account you want to use: https://stripe.com/docs/connect/accounts
- what type of charge you want to use: https://stripe.com/docs/connect/charges
tepid summitBOT
rancid dagger
i think what i need is Destination Charges
languid marten
Yes that can work for you use case. Is there still a specific part of destination charges that you are confused about here?
rancid dagger
yes, i can read that i need to create stripe account for each of my seller, and also i can read that i need to use session.
i mean the whole flow/docs are very confusing. i don't know where to start to read
is there any tutorial for a marketplace scenario ?
languid marten
Not specifically for that scenario unfortunately, just the doc on destination charges themselves https://stripe.com/docs/connect/destination-charges
languid marten
yes, i can read that i need to create stripe account for each of my seller, and ...
Is this to say that onboarding the connected accounts is confusing you? Is there a specific part of that that you are having trouble with
rancid dagger
the confusing part is that i think there is multiple ways and i thought using Stripe could be much more straightforward for handling this scenario.
- should i create an account for each seller?
- shouldn't create an account for the seller and just use sessions?
- should i just use only transfer_data[destination] ?
- what's the deal with different country bank account that need to use
on_behalf_of?
languid marten
- Yes, you will need to create a connected account for each seller.
- I am not sure what kind of session you are talking about, can you tell me more about what you mean here?
- Yes, use
transfer_data[destination]to designate the destination account - I am not sure what you mean here, can you explain this question more?
rancid dagger
- https://stripe.com/docs/api/checkout/sessions
- from the docs -> Destination charges are only supported if both your platform and the connected account are in the same region (for example, both in the US). For cross-region support, you must specify the settlement merchant to the connected account using the on_behalf_of attribute on the charge or see other valid scenarios at Cross-border Transfers.
that's because my sellers are all around the globe and they are not in the same region as my platform
languid marten
For #2, checkout sessions are a completely separate concept from Stripe accounts. Checkout Sessions can make destination charges, you can create destination charges with a Checkout Session, but that still means that you need to have a Stripe account that represents your seller for you to send the funds to. https://stripe.com/docs/api/checkout/sessions/create#create_checkout_session-payment_intent_data-transfer_data-destination
And gotcha about the cross border transfers. Can you explain more about what you want to know about that flow?
rancid dagger
sure.
- seller signup
- seller set their bank account (for receiving money)
- The buyer purchases an item
- 10% of the total amount goes to our marketplace
- 90% of the total amount goes to the seller's bank
This has been a pretty common flow for any e-commerce/marketplace for a long time.
languid marten
I understand the flow, I more meant that you asked "what's the deal" and I am not sure what part of "the deal" you are trying to understand
rancid dagger
i mean if i need to use transfer_data[destination] with the amount and currency, why need to use on_behalf_of for those who are in different country than mine.
I may be wrong cuz i am not 100% sure about the "destination-charges".
But what i want to find out is which documentation can guide me to achieve the given flow for our marketplace.
the doc that you just shared with me, apparently is not the starting point because i can see on the first line is talking about the "express/custom" accounts..
languid marten
This doc can help you choose between account types. https://stripe.com/docs/connect/accounts
Unfortunately connect is very dense so it takes a good amount of background reading upfront. I think the two best docs to start with are that account type doc and this doc on the different connect payment types https://stripe.com/docs/connect/charges
Finding more on the OBO piece and will get back to you.
@rancid dagger It looks like that destination charges doc is incorrect, it is actually required that on_behalf_of is not used for cross border destination charges at the moment. https://stripe.com/docs/connect/cross-border-payouts#restrictions-and-requirements
Basically on_behalf_of changes who is the merchant of record (who shows up on the bank statement and such), from my understanding this is to address legal constraints around cross border transfers but I am not finding much on that. So from a coding perspective, the answer is that you don't need to set on_behalf_of but for the why behind that I would reccommend reaching out to our support team https://support.stripe.com/?contact=true