riptired_connect-setup | Stripe Developers | Page 1

meager estuaryBOT Jun 27, 2024, 10:52 PM

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dusky harness Jun 27, 2024, 10:53 PM

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@wicked aspen it's hard to say without more details. Is the only new feature you're building to send funds to connected accounts?

wicked aspen Jun 27, 2024, 10:54 PM

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Yeah sorry I ran out of characters

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Yes, we are growing our clients and some clients have more specific requests around how they are paid out. Additionally we want to pay them out automatically so that we don't have to do any payment calculation and manual payout at the end of each month.

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For example for Client A that we work with, they have X subscriptions. They want their payout of the subscription fee to go to 2 bank accounts at the end of the month

dusky harness Jun 27, 2024, 10:55 PM

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What type of connected account are you going to use? There are a lot of ways to use Connect

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riptired_connect-setup

wicked aspen Jun 27, 2024, 10:56 PM

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What do you mean by connected account?

dusky harness Jun 27, 2024, 10:56 PM

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Yeah sorry there are so many ways to integrate our products so it's tough to try and answer you concisely and quickly

wicked aspen Jun 27, 2024, 10:57 PM

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Yeah fair, what information can I give you so that we are on the same page

dusky harness Jun 27, 2024, 10:57 PM

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Usually, the first decisions you make as a platform are

How do I configure my connected accounts (who owns liability, pricing control, onboarding)
What flow of funds do I want to model

wicked aspen Jun 27, 2024, 10:58 PM

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Ah yeah let me type that out

dusky harness Jun 27, 2024, 10:58 PM

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https://docs.stripe.com/connect/overview

wicked aspen Jun 27, 2024, 10:59 PM

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The flow of funds should generally be from customer > us (the platform) > end of the month > payout to client (include some grace period for payment issues so that if there are chargebacks / etc we can handle before payout to client)

dusky harness Jun 27, 2024, 11:00 PM

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yeah sorry you're missing the point a bit

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you're answering what you think about for your business but it's not yet mapped to our entire vocabulary/design for Stripe Connect.

Maybe let's take a step back: are you not already familiar with Stripe Connect and ready to get coding after having made those fundamental choices?
Totally fine if you're not, but that's definitely an important piece of info

wicked aspen Jun 27, 2024, 11:04 PM

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I am not super familiar with stripe connect, I have read a couple docs but haven't used it before

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I am considering if this is the right option and how much work would be involved to migrate to the type of solution we need from what we are currently doing on stripe

dusky harness Jun 27, 2024, 11:07 PM

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Gotcha. For this, our support team is usually better equipped to have deep 1:1 conversation about you, your overall business model and goals so you might want to approach them instead: https://support.stripe.com/contact

I'm happy to answer code-related questions if you have any but I can't really help you weight the pros and cons of many of the potential solutions without going deep into your own business model, your risk appetite,etc.

But at a high level, assuming you hold all risk/liability for Refunds/Disputes (which seems to be what you do already) you can use Stripe Connect and Destination Charges for your flow.
The idea is that you charge John Doe (cus_123) for $20 and you configure that PaymentIntent to have a "destination account" where part of the funds will be sent (so for example $16 and you keep $4 for your platform to cover our fee and your fee). And then you can configure each connected account to have Payouts happen daily/weekly/monthly for example

wicked aspen Jun 27, 2024, 11:11 PM

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Makes sense, appreciate the candor

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On the API side however, purely from someone migrating from just using checkout links to stripe connect, is that a significant undertaking to migrate?

dusky harness Jun 27, 2024, 11:14 PM

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Checkout is fully compatible with Stripe Connect so no that part shouldn't be hard. What to change will depend on what "flavour" of Stripe Connect you pick. Assuming you pick the one I laid out above it's as simple as adding transfer_data to your Checkout Session creation to tell us which of your connected account should receive the money

wicked aspen Jun 27, 2024, 11:14 PM

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Ah interesting, currently all of the checkout session creation is just done in the dashboard

dusky harness Jun 27, 2024, 11:15 PM

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😅

wicked aspen Jun 27, 2024, 11:15 PM

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As in our team just creates a product and a link for that product

dusky harness Jun 27, 2024, 11:15 PM

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Do you create PaymentLinks?

wicked aspen Jun 27, 2024, 11:15 PM

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and on the API side I am just subscribed to all of the webhook events for stripe subscriptions

dusky harness Jun 27, 2024, 11:15 PM

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yeah okay. Another crucial bit, product names matter a lot 🙂

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You can configure a PaymentLink to send a portion of the funds directly to a connected account even in the Dashboard!

wicked aspen Jun 27, 2024, 11:17 PM

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Ah yes sorry we do create PaymentLinks

dusky harness Jun 27, 2024, 11:17 PM

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all good, I know it's a lot, especially if most of your experience with Stripe is Dashboard based

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Are your PaymentLinks re-usable like you sell a $20 book and anyone can load that link to pay? Or are you creating one-off links for each individual customer and their order/subscription?

wicked aspen Jun 27, 2024, 11:19 PM

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We make a Product in the product catalog that is a subscription (charged monthly) for each client. Then we create a re-usable link that anyone can use to purchase that product from that client (we are not creating one-off links). From the API side then we can discern by the product who the subscription is for and then just listen to relevant subscription events

dusky harness Jun 27, 2024, 11:20 PM

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gotcha, so yeah that is still possible with Connect and you can configure who gets the funds

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this UI in the Dashboard allows you to configure the funds split

wicked aspen Jun 27, 2024, 11:23 PM

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Is it possible to split out to 2 external accounts? (we retain X%, account 1 gets y % and account 2 gets z %?)

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And additionally from a migration perspective if I am using the current setup I have, is it possible to migrate the existing clients and subscriptions to stripe connect or I can only use stripe connect for new clients going forward (like what about Bob who is paying a monthly subscription for a product in our catalog currently)

dusky harness Jun 27, 2024, 11:24 PM

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not directly. There are ways but that would require a lot more code where you basically accept the payments and then transfer funds (with code) to 2 separate Stripe accounts (each with their own bank account)
Or if you want just one connected account, then you'd write code to track which portion of the funds goes to which bank account and then you'd create a manual Payout (with code) for the right bank account

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and yes migrating is doable

wicked aspen Jun 27, 2024, 11:29 PM

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Would I be able to do the payouts with code without migrating to Stripe Connect?

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since I would have to use code with Stripe Connect anyways

wicked aspen Jun 27, 2024, 11:30 PM

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dusky harness and yes migrating is doable

And then on migrating being doable, what does that mean for the end users paying subscriptions, will they have to re-sign up for a new subscription or is it mostly seamless (they wouldn't know anything had happened

dusky harness Jun 27, 2024, 11:35 PM

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You have to use Stripe Connect for what you are after

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And no one needs to re-subscribe, you can update existing Subscription to send the funds to the right/new connected account

wicked aspen Jun 27, 2024, 11:36 PM

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okay so in summary, the payout to 2 accounts requires a large lift in code, payout to single accounts is relatively straightforward and supported by Connect, migration of existing subscriptions is seamless, will just need to use API(?) to update subscriptions to send funds to the right account

dusky harness Jun 27, 2024, 11:38 PM

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I would say that's correct yes

wicked aspen Jun 27, 2024, 11:42 PM

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okay do you have a link for the docs I would reference for the 2 account payout

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other than that, I really appreciate the help

dusky harness Jun 27, 2024, 11:46 PM

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https://stripe.com/docs/connect/charges-transfers would be the flow of funds if you wanted to have 2 separate Stripe accounts receive a portion of the funds

ocean narwhalBOT Jun 28, 2024, 12:00 AM

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wicked aspen Jun 28, 2024, 12:12 AM

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Okay so my main question after reading these docs are can i do a single transfer to a account or multiple accounts at the end of the month that uses the funds from the payments for the month? or if I want to use a source transaction then I would need to do N transfers for N subscription payments

lavish hawk Jun 28, 2024, 12:25 AM

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👋 taking over here

wicked aspen Jun 28, 2024, 12:26 AM

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👋

lavish hawk Jun 28, 2024, 12:26 AM

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You can do multiple transfers to multiple Connected Account, from 1 source Transaction

wicked aspen Jun 28, 2024, 12:27 AM

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To be more specific the use case I am thinking about is the client that is using my platform wants to be paid out into 2 accounts and I pay them out at the end of each month

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they are selling a subscription which means they could have 1000 clients

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so in order to pay them out at the end of the month how does that work? do I need to maintain some balance or how do I pay out their portion of the 1000 subscription fees

lavish hawk Jun 28, 2024, 12:37 AM

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Yes so you create a Charge from your customer to you (Platform), then in the end of the month you create 2 Transfers to your client's 2 accounts. The total amount of the transfer need to be <= the amount of the original Charge

wicked aspen Jun 28, 2024, 12:37 AM

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so I have to do 1000 transfers if there are 1000 subscriptions?

lavish hawk Jun 28, 2024, 12:38 AM

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I imagine 1000 Subscription, you will have 1000 Charges and 2000 respective Transfers. That's 1000 pairs of (1 Charge + 2 Transfers) programmatically

wicked aspen Jun 28, 2024, 12:38 AM

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yikes is that the recommended way to do this? I thought I would just be able to send 1 transfer to each account at the end of the month

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does that mean in the client's bank they will see 1000 transfers? that seems ridiculous

lavish hawk Jun 28, 2024, 12:41 AM

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No the clients will only see 1 transfer of Payout. A monthly Payout aggregate all the transaction they receive in a month

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Let's use the term clearly. "Transfer" mean funds move from your Platform Stripe balance to your Connected Account Stripe balance. "Payout" means fund is paid from your Connected Account balance to your Connected Account bank account

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Think "Payout" as separated step

wicked aspen Jun 28, 2024, 12:42 AM

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ahh I see

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okay and all of this has to be setup via the API? especially if I need to pay out to 2 accounts for a single connected account? or can this be setup automatically in Stripe Connect via the dashboard (especially for connected accounts that only have 1 account that payment is sent to)

lavish hawk Jun 28, 2024, 12:57 AM

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Yes it will need the API

wicked aspen Jun 28, 2024, 1:02 AM

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so to pay out monthly I would need to setup my own system to run end of month and initiate all the transfers

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do I need to initiate a payout as well I dont see that in the docs

lavish hawk Jun 28, 2024, 1:04 AM

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You can setup Automatic Payout

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https://docs.stripe.com/connect/manage-payout-schedule

Managing payout schedule

Manage the automatic payout schedule to your connected accounts.

wicked aspen Jun 28, 2024, 1:06 AM

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okay so for the accounts that have a single payment recipient I can setup an automatic schedule, what about for the accounts that have multiple payment recipients

lavish hawk Jun 28, 2024, 1:18 AM

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By recipients do you mean Connected Account? You can set Automatic Payout on each of the Connected Account

wicked aspen Jun 28, 2024, 1:23 AM

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Yeah, I have 1 case where for 1 product that uses a subscription payment I need to pay out to 2 connected accounts

lavish hawk Jun 28, 2024, 1:41 AM

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Yes, so each of that Connected Account can setup their Automatic Payout

wicked aspen Jun 28, 2024, 1:41 AM

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You mean I can setup the automatic payout for each of the connected accounts? And also be able to split payment for 1 product to 2 connected accounts?

lavish hawk Jun 28, 2024, 1:46 AM

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Yes

#riptired_connect-setup