#john_api
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runic sedge
hello! No, connected account to connected account is not possible. It's usually paid out from Platform -> connected account
summer tendon
how vendors of a seller can be paid on Stripe platform?
runic sedge
I think what you want is probably : https://docs.stripe.com/connect/separate-charges-and-transfers
summer tendon
e.g.
A Seller on platform is a Connect account.
Payment is transferred to the Seller's Connect account. At a certain point some of the funds needs to bee paid to different vendors of Seller
runic sedge
https://docs.stripe.com/connect/separate-charges-and-transfers - this flow is probably what you want. I suggest going through it first. Let me know if you have specific questions about this flow
summer tendon
I do not think this will work
Here is my scenario
- Seller on our Platform is a Connect account.
- For some Sellers we need to create Direct Charges
- At some later point, the Seller needs to pay to its vendors/sub-contractors.
How can the Seller pay to its vendors/sub-contractors?
runic sedge
You can create charges with on_behalf_of so that the seller appears on the bank statement of the customer. Subsequently, you would take a larger application fee, then transfer the funds to the vendors / sub-contractors who are also connected accounts
maybe you can explain more about what doesn't fit your criteria for what I just explained?
summer tendon
you mean transfer to the vendors/sub-contractors will come out of the larger application fee?
runic sedge
oh, sorry ignore the bit about an application fee. The payment is on your platform anyway
so there's no need to take an application fee
you would transfer all of the funds separately to the seller and vendor / sub-contractors
summer tendon
technically, the vendors/sub-contractors are specific to the Seller.
They can be a Connect account on our Platform but the source of funds transfer has to come from the payments that the Seller receives
so, ideally, the source of funds is Seller's Connect account and destination is Sub-vendor's Connect account
runic sedge
yes, everything that I mentioned seems to meet your requirements still
summer tendon
and to make it more interesting, for some Seller needs to create Direct Charges
runic sedge
what's your reasoning for needing to create Direct Charges on those sellers?
summer tendon
just a business requirement
could you please explain once more, what solution will work here?
runic sedge
You can create charges with on_behalf_of so that the seller appears on the bank statement of the customer. Subsequently, you can then transfer the funds to the vendors / sub-contractors who are also connected accounts
Without knowing exactly why you need to create direct charges, there's not much I can say other than you can possibly use charges with on_behalf_of too
Knowing the background context on why you need to use direct charges would allow us to be able to better advise you
summer tendon
with on_behalf_of on Charges, when the transfer is created, will it come from Platform account or Seller's Connect account?
I am sorry if I sound confused
runic sedge
The settlement merchant is the connected account for on_behalf_of. The payment and funds is on the platform account. The transfer moves the funds from the platform account to the connected account.
The detailed explaination of on_behalf_of is here : https://docs.stripe.com/connect/separate-charges-and-transfers?platform=web&ui=stripe-hosted#settlement-merchant.
The Separate Charges and Transfers page which I previously shared also has a diagram for the movement of funds
summer tendon
is there a way to bypass the Platform here? With Direct charges, the funds will not appear on the Platform account
runic sedge
No, there's no way to bypass the platform. There's no way to move funds from connected account to connected account. All money movement must pass through the platform.
even for direct charges, if you want to transfer funds to the vendors, the platform will need to take a larger application fee (i.e. this will still go through the platform) and then transfer funds to the vendors from that application fee amount