#suba_crossborder-payouts-charges
undone roostBOT
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- suba_async-capture, 1 day ago, 15 messages
charred hatchBOT
stiff path
Hi there 👋 Destination Charges are expected to assess Stripe fees against your Platform account:
https://docs.stripe.com/connect/charges#stripe-fees
In order to do what you're describing, you would likely need to switch to a Separate Charges and Transfers flow:
https://docs.stripe.com/connect/separate-charges-and-transfers
After processing the payment on your Platform account, you can review the Balance Transaction for it to determine what the Stripe fees for that payment were. Then you can take that into account when creating the Transfer to move funds to your Connected Account and adjust what you send them.
zealous roost
But is there a way to have a stripe fee estimate in the process of creating the payment intent? Even if it's just an estimate.
We tried with seperate charges too, but because of currency conversion, it gets a lot more expensive.
Also, isn't there a way to do something similar like you suggested but with destinations? Where after processing the payment, we create a transfer from the connected account to our platform account with the stripe fee?
stiff path
You can estimate that, but we don't provide a mechanism to retrieve those estimates. If you know the pricing for your account, you can estimate the amount of the fee that you will be charged based on the amount of the payment.
We aren't too familiar with pricing schedules in this forum, so if you're unclear about what the pricing for your account is you'll want to reach out to our Support team:
https://support.stripe.com/?contact=true
Also, isn't there a way to do something similar like you suggested but with destinations? Where after processing the payment, we create a transfer from the connected account to our platform account with the stripe fee?
No Destination Charges are the automatic process that automatically make the Transfers for you. Separate Charges and Transfers is the same flow but gives you more control over when you make the Transfer to the Connected Account.
Hm, maybe you're referring to Direct Charges though, since it sounds like you're talking about the payment happening on the Connected Account?
urban nexus
Are you available for a quick audio call?
i'm one of the devs at this project
and we've been struggling with this issue for weeks now, putting our business on hold because we can't properly accept payments
stiff path
Sorry, no. I'm happy to answer any questions you have in here as best I can though if things are still unclear.
urban nexus
Okay, no worries
So, what we advertise in our sales is that we charge 3% + payment processing fees
so, in a payment of say 20€ we would take 0.6€ and then the connected account would pay the payment fees
we honestly don't care if they pay the fees directly, or if we deduct them from the total ammount, and then we pay it ourselves
as long as the net fees are deducted from them
that's point one
the second is, our connected accounts and their clients will handle refunds through our platform
third one is, our connected accounts can be in multiple countries, different from ours (platform). The clients of the connected accounts although are likely to be 99% of the times within the same country.
stiff path
Are you a US-based Platform?
urban nexus
currently our business is incorporated in the US, although in one month we'll incorporate in Portugal
(sorry for all the messages but trying to give full overview, so you can help us with the best setup)
stiff path
I think this is going to be tricky when you move to Portugal, because our Cross-border Payouts solution that covers your third point is only for US-based platforms:
https://docs.stripe.com/connect/cross-border-payouts
Based on what you described I'd suggest using Separate Charges and Transfer with Cross-border Payouts.
urban nexus
Okay, we've tried using Separate Charges and Transfer, the problem was mainly due to higher fees and money being shown another currency
For example, this was a 20€ live payment we have made with Separate Charges and Transfers
it says $20 by the way, but it's pure coincidence
stiff path
Both Destination Charges and Separate Charges & Transfers flows settle funds on your Platform account. So I'm not sure what you're referring to by seeing higher fees for one and not the other.
Why are you testing this in livemode?
urban nexus
Here is an example of 2€
Separate Charges and Transfers
Destination charge
Destination charges looks simpler for us,the problem is that platform fee is only taking our 3%, and not accounting for the Stripe fees
which puts us on a loss
stiff path
Which is why you have to use SC&T instead. I don't really understand what you're showing with those above screenshots. I know their a view of things from the dashboard, but my teammates and I in this forum aren't really familiar with the dashboard UIs.
Or use Direct Charges where the Connected Account is directly charged for the Stripe fees, but that may allow them to refund payments outside of your control.
stiff path
I get that, but what are you trying to show me with them?
urban nexus
quick question: with SC&T when it touches to refunds, who pays back the Stripe fee?
urban nexus
I get that, but what are you trying to show me with them?
good question: was trying to show you net different our connected accounts get with the different methods. Both are payments of 2€
with SC&T the client gets: 1.55€
with Destination Chargesthe clients gets: 1.66€ (it's actually wrong on the screenshot bcz of the problem describre above)
stiff path
I'm not sure I understand what you're asking there. The processing fee is not returned for refunded payments as far as I'm aware, but again the specifics of pricing and fees are something our Support team is more familiar with.
https://support.stripe.com/questions/understanding-fees-for-refunded-payments
urban nexus
I believe that with SC&T it becomes hella expensive because of conversions
stiff path
Did you experiment with using on_behalf_of to change the settlement merchant and what currencies payments settle in?
https://docs.stripe.com/connect/separate-charges-and-transfers?platform=web&ui=stripe-hosted#settlement-merchant:~:text=Charges settle in the connected account’s country and settlement currency
Do you have specific payment object IDs that you can share? That gives my teammates and I more insight into what you're describing than dashboard screenshots.
undone roostBOT
zealous roost
Since we are using cross border payouts I don't think we can use the on_behalf_of
stiff path
Ah, you're right, I forgot about that.
neon carbon
Hello, I am stepping in as my colleague needs to go
I think the most straightforward way to handle this situation is to use Separate Charges & Transfers and deduct the Stripe fee from the amount you transfer to the Connected Account.
zealous roost
Yeah, that's the setup we currently have.
It's just not ideal because when we do the transfer with USD(our currency) to let's say EUR (client/connected currency), that 1% fee for the currency conversion gets deducted from the money.
neon carbon
Yes I don't see a way around that, given the other constraints you have already specified
urban nexus
@neon carbon is there a way settle the payment in the connected account currency, take the fee and only then convert to the currency of the plataform?
Problem here is that with conversions, total fees are like +10% of the total transaction ammount.
So for example, a payment of 20€ results in only 17.58€ for the connected account.
While with destination charges for example, it would be charged only 1.5% + 0.25€ being a domestic card, which would result in 18.85€ for the connected account (stripe fees + 3% platform fee)
neon carbon
is there a way settle the payment in the connected account currency, take the fee and only then convert to the currency of the plataform?
This would only be possible if you could use on_behalf_of but because you are using Cross Border Payouts that is not permitted.
urban nexus
It's not permitted because currently we're a US-business right?
If we move the business to Portugal, then we can use on_behalf_of?
sorry confused right now
neon carbon
International bankig rules are confusing. It's understandable
The EU is considered a single region so you would be able to integrate with Connected Accounts the same way a US platform can integrate with US Connected Accounts.
Then you would be able to use Destination Charges with OBO and perform the transactions in the Connected Account's settlement currency