jarekdistro | Stripe Developers | Page 1

marsh rootBOT Dec 20, 2023, 4:47 PM

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fluid rose Dec 20, 2023, 4:48 PM

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Hello

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Sounds like you are using direct Charges with Express, which we really don't recommend.

median oracle Dec 20, 2023, 4:49 PM

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This is how their store checkouts look:

const session = await stripe.checkout.sessions.create(
{
line_items: lineItems,
metadata: {
organizationId: config.public.orgId
},
success_url: 'https://example.com/success',
cancel_url: 'https://example.com/cancel',
allow_promotion_codes: true,
// Need to set up Stripe tax for our customers
// automatic_tax: {
// enabled: true
// },
billing_address_collection: 'required',
shipping_address_collection: {
allowed_countries: ['US', 'CA']
},
mode: 'payment',
},
{
stripeAccount: stripeConfig.account
}
);

return session;

fluid rose Dec 20, 2023, 4:50 PM

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Yeah, since you are creating the Session on the Connected Account it requires that the Connected Account's settings are set. Instead you should be using a destination charge here (using transfer_data.destination: https://stripe.com/docs/api/checkout/sessions/create#create_checkout_session-payment_intent_data-transfer_data ) and potentially on_behalf_of

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Then it would use your platform settings

median oracle Dec 20, 2023, 4:51 PM

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I see, we set up Stripe Tax for the platform and our customers use those settings for their checkouts.

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What's the difference between transfer data and on behalf of?

fluid rose Dec 20, 2023, 4:53 PM

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transfer_data indicates that funds should be moved immediately to your Connected Account. on_behalf_of determines the settlement merchant, see: https://stripe.com/docs/connect/destination-charges#settlement-merchant

median oracle Dec 20, 2023, 4:54 PM

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Is the platform or the store owner the settlement merchant?

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Is it who gets the money?

fluid rose Dec 20, 2023, 4:54 PM

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Ah actually it does look like right now using destination with on_behalf_of and automatic tax is in beta: https://stripe.com/docs/tax/connect#beta

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Just fyi on that

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In terms of "who is the settlement merchant", that depends on your business.

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You mostly can think of the settlement merchant as who the customer is actually paying.

median oracle Dec 20, 2023, 4:55 PM

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We are an ecommerce platform. Our customers open a store and website, and sell products.

fluid rose Dec 20, 2023, 4:55 PM

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Yep then your users would be the settlement merchant here

median oracle Dec 20, 2023, 4:55 PM

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k

fluid rose Dec 20, 2023, 4:55 PM

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So you would want to use on_behalf_of in that case

median oracle Dec 20, 2023, 4:56 PM

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Ok so we need

transfer_data: {
    destination: '{{CONNECTED_ACCOUNT_ID}}',
  },

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oops

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I see "When using destination[account], on_behalf_of is automatically set to the same value as destination[account]."

fluid rose Dec 20, 2023, 4:57 PM

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Yeah first I would make sure you can get access to the private beta so you can use auto tax with on_behalf_of

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Ignore destination[account] -- that is legacy really.

median oracle Dec 20, 2023, 4:58 PM

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ok

fluid rose Dec 20, 2023, 4:58 PM

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You want to just focus on transfer_data.destination

median oracle Dec 20, 2023, 4:59 PM

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like the snippet above?

fluid rose Dec 20, 2023, 4:59 PM

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Yeah, for a Checkout Session it would be payment_intent_data: { transfer_data: { destination: 'acct_123' } }

median oracle Dec 20, 2023, 5:01 PM

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great, and I just need to setup Stripe Tax for our platform?

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since I want to get automatic_tax

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sorry theres a lot going on just want to make sure i understand

fluid rose Dec 20, 2023, 5:02 PM

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Hmm I'm not actually positive if you are going to use on_behalf_of since that is a private beta feature. If you are going to not use on_behalf_of then yes, you would only need to set up registrations on your platform.

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So you can request access to that private beta and then discuss with the beta team when they reach out about access.

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So for now, if you are going to use Direct Charges (which again, we really don't recommend but I do understand this is a gap until using on_behalf_of is supported for Auto Tax) then you would want to take advantage of the Tax Registration API to configure your Connected Accounts: https://stripe.com/docs/tax/registrations-api

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If you are able to wait until you get access to the beta then that would be my recommendation for the best path forward.

median oracle Dec 20, 2023, 5:05 PM

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Honestly it's not urgent, we haven't even launched and from what i see, most states don't charge tax on you until you reach 100k in sales per state. Our customer will be smaller shops.

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But the registration API is what I was looking for so thank you for that

fluid rose Dec 20, 2023, 5:06 PM

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Gotcha

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Then yeah, really I'd recommend integating Checkout with destination + on_behalf_of and then adding Auto Tax once it is available.

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You run into a lot of issues when using Direct Charges with Express Accounts -- that charge flow is really meant for Standard Connected Accounts

median oracle Dec 20, 2023, 5:08 PM

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Got it. So to conclude, assuming I wont use the private beta, I can use

automatic_tax: {
  enabled: true
}
payment_intent_data: {
  transfer_data: {
    destination: 'acct_123' 
  }
}

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on checkouts

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And I need to have stripe tax configured on our platform?

fluid rose Dec 20, 2023, 5:09 PM

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Well yes, but that would make your platform the settlement merchant

median oracle Dec 20, 2023, 5:10 PM

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Then I should say, the destination account needs to have Stripe Tax configured, which we can do for them via the Tax registration API?

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do you just recommend the private beta so we can avoid setting up the stripe tax for our customers?

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oh i guess the tax reg api is also in private beta

fluid rose Dec 20, 2023, 5:11 PM

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I recommend first implementing without Auto Tax

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The Tax Registration API is in public beta I believe

median oracle Dec 20, 2023, 5:12 PM

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oh ok

fluid rose Dec 20, 2023, 5:12 PM

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But you would first implement Destination + on_behalf_of which would look like: payment_intent_data: { transfer_data: { destination: 'acct_123' }, on_behalf_of: 'acct_123' }

median oracle Dec 20, 2023, 5:12 PM

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Got it, ok so I would use both.

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Ok I'll go ahead with that and deal with the tax thing later, thanks for your help

fluid rose Dec 20, 2023, 5:14 PM

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👍

median oracle Dec 20, 2023, 5:16 PM

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Actually one more question. is amount under transfer_data automatic based on the line items total?

fluid rose Dec 20, 2023, 5:19 PM

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If you don't set that then the entire amount is transferred

#jarekdistro