#hungry-lance_best-practices
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mighty star
Hi there
young pond
hi!
mighty star
I am doing this via transfer on the original payment intent/charge
By this, do you mean you're using destination charges?
young pond
yes
mighty star
If/when you need to refund a customer, you would reverse the transfer: https://docs.stripe.com/connect/destination-charges?platform=web&ui=elements#issue-refunds
young pond
If I am understanding this correctly, if a customer was charged 12 dollars, and then this was split between the platform and connected account, by passing in the reverse_transfer=True, the original charge would be refunded and the 2 dollar transfer would also be taken back from the connected express account? If the refund to the customer happens like 30 days later and this was already paid out, where does the money for the reversal come from? will it just appear as a negative balance on the stripe account? or does it come from the bank account directly?
Also, how would this work in the case of a partial refund? for example, if we double everything so that the customer is charged 24 dollars, platform keeps 20 and the express account keeps 4. However, however, the customer needs a refund for only have 12 dollars. Is there a way to refund the customer 12 dollars with 2 dollars coming from the express account and 10 dollars coming from the platform account?
mighty star
the original charge would be refunded and the 2 dollar transfer would also be taken back from the connected express account?
That's correct! I recommend testing this out as well so you can see the different objects, fund flows
young pond
gotcha! will definitely test these out! just trying to figure out a direction for handling some of the scenarios i am running into!
mighty star
If the refund to the customer happens like 30 days later and this was already paid out, where does the money for the reversal come from? will it just appear as a negative balance on the stripe account? or does it come from the bank account directly?
This should help explain what happens: https://docs.stripe.com/connect/account-balances#accounting-for-negative-balances
Is there a way to refund the customer 12 dollars with 2 dollars coming from the express account and 10 dollars coming from the platform account?
No, not exactly. For partial refunds, the amount coming back from the connected account will be proportional to the total amount refunded - https://docs.stripe.com/api/refunds/create#create_refund-reverse_transfer
young pond
gotcha. final question: So if the use case for refunds becomes a little more granular, would it be better to do something like this? In a scenario where there is a 35 dollar charge. split needs to be the following: 30 dollars to platform 5 dollars to connected express account. If i need to do a 23 dollar refund to customer, where 20 should come from platform and 3 from express account.
- Would it be better as the platform account to just charge 35 dollars to customer with no transfer on that api call -> Create a transfer of 5 dollars to connected account. Upon refund scenario from above, platform account will create a partial refund of 23 dollars to customer on original charge and then do a partial reversal of the transfer of 3 dollars as a separate transaction? If i do this, does this depend on payouts?
- Is there another mechanism that would help achieve this scenario?
mighty star
For the kind of granular refunds you want, you should likely look into using separate charges and transfers. This flow kind of unlinks the original charge from the transfer so you can reverse the transfer independently and at any amount (up to the amount of the original transfer)
young pond
gotcha. will look into these documents. thank you!