solbass_best-practices

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[hot sand]

If I'm understanding this correctly, you're thinking about a "grandparent" relationship? You create a platform with companies as connected accounts, and each of the company accounts are also platforms, with affiliates as connected accounts. Is that accurate?

[smoky nacelle]

To be honest I don't know entirely how the Stripe system works haha. But basicially my platform allows companies to track affiliates performance. But now I need a way to allow the companies to pay out their affiliates (the number is stored in my backend, ex: $20). The same person can be an affiliate for two different companies also. So I was just curious on the best way of going about allowing companies to pay out affiliates.

[hot sand]

How are payments/funds being "accepted"? In other words, where is the money that is being paid out coming from?

[smoky nacelle]

ex: My company name is AffiliateTracker. McDonalds signs up as a company. Joseph signs up as an affiliate. AffiliateTracker's metrics show Joseph led to 100$ in sales for Mcdonalds, and with a 20% Affiliate fee, Joseph is owed $20. Mcdonalds needs to send out $20 from their bank account. AffiliateTracker has a 10% take rate. So $2 goes to AffililateTracker, and $18 goes to Joseph.

Maybe this is what I need? https://docs.stripe.com/connect/separate-charges-and-transfers

[hot sand]

Separate charges and transfers would work if funds land on the AffiliateTracker's account and you transfer some portion to McDonalds and some portion to Joseph. In that scenario, both McDonald's and Joseph would need connected accounts (either Express or Custom)

[smoky nacelle]

Hm, no I guess then it would not work. I need to transfer funds from Mcondald's Bank account and split the desitnation between AffiliateTrackers and Josephs account

[hot sand]

I see. No, we wouldn't be able to support this flow

[smoky nacelle]

But what if I charge Mcondalds from Affiliate Tracker and then just pay out Joseph what he's owed? So Mcdonalds pays AffiliateTracker, AffiliateTracker pays Joseph 90%.

[hot sand]

No, this wouldn't work either

[smoky nacelle]

why not?

I can do this to collect money from Mcdonalds

And then this to pay Joseph

[hot sand]

Account debits would pull from McDonald's connected account balance, not their external bank account

[smoky nacelle]

ooo

[smoky nacelle]

What about this where I charge Mcondalds?

Take my platform fee, then pay Joseph

[hot sand]

I recommend looking at this: https://docs.stripe.com/connect/destination-charges#flow-of-funds-app-fee

For destination charges, a charge would be made on AffiliateTracker, funds would be transferred to McDonalds, and the application fee would be transferred back to AffiliateTracker. You could create a transfer to Joseph, sure, but those funds would come from the AffiliateTracker balance

I recommend reading through the funds flows diagrams here as well if you haven't already: https://docs.stripe.com/connect/charges