#fireside_best-practices
manic ginkgoBOT
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warped spadeBOT
coral maple
Hi 👋
Yeah, sounds like you're heading down the wrong path for this sort of flow. You need to leverage Stripe Connect to onboard your users to Stripe, and then you can transfer funds to them to be paid out to their bank account (or debit card):
https://stripe.com/connect
https://docs.stripe.com/connect
ember wadi
Okay, so I saw this and had a couple questions. So when I send the user account money, is it like in escrow? Like its in a Stripe account balance now but you cant technically send it directly to their bank account? And by Stripe account it is like just a reference account correct? Or do they need to actually sign up for a Stripe account?
coral maple
They do sign up for a Stripe account, that's what happens you onboard your Connected Accounts. You'll create a Stripe account for your users, then they'll go through and provide the necessary KYC details.
Okay, so I saw this and had a couple questions. So when I send the user account money, is it like in escrow? Like its in a Stripe account balance now but you cant technically send it directly to their bank account?
I don't think this is how I'd describe it, as "escrow" is a pretty precise legal term, so we don't try to map our concepts to it.
Once the funds from the payment are availble to be transferred to the Connected Account, they're also available to be paid out. Depending on how you build your Connect integration the behavior may be slightly different in those regards.
Destination Charges, or Separate Charges & Transfers, involve the payment happening on your Stripe account (the Platform account) and then funds are transferred to your user's Stripe account (the Connected Account).
If you use Direct Charges instead, payments happen directly on your Connected Accounts.
In all three flows the funds need to settle, it's just a bit different where they settle first.
ember wadi
Okay, I see now. This is very helpful and defintely pointed me in the right direction. I'll take a look at the docs and try to get a better understanding from a development perspective. Thanks so much Toby for the help!
coral maple
Any time! Connect can be tricky, so feel free to swing back by if it gives you any trouble.