#ed_best-practices

1 messages · Page 1 of 1 (latest)

granite ventureBOT
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pallid monolith
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Also "subaccounts" are not a Stripe concept. We do have Connected Accounts and I encourage you to use that terminology to avoid confusion

maiden needle
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Sorry let me rewrite my question:

If I use Stripe with destination charges, do I need to create a new customer per connected account? I will be using on_behalf_of

Furthermore, if I use on_behalf_of, do I need to create a setupintent per-connected account? If so, how do I keep track of if I already created a setupintent per-connected account?
pallid monolith
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My first answer still applies

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Destination charges and all the related objects are created on the Platform account

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So the customers & setup intents would all be created on the Platform and the Connected Accounts would only see the transfers as payments coming into their accounts

maiden needle
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So therefore, I only need 1 Customer object and 1 setup intent even though I'm using on_behalf_of ?

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Why is this different ? Because if I understand correctly, in stripe standard, I need to have 1 Customer per connected account and therefore 1 setupintent per connected account, right?

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But on_behalf_of still puts the connected account as the merchant of record

pallid monolith
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I recommend you review the differences between Direct Charges and Destination Charges

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This is fundamental to the difference between the two and our docs do a good job of describing them

maiden needle
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I read through the doc5 times

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And I still don’t understand

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I understand roughly the difference, but I don’t understand why in this case I don’t need to create a new customer

pallid monolith
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Sorry but this is the most basic aspect of how these work

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  1. Direct Charges - all records exist on the Connected Account
  2. Destination Charges - all records exist on Platform Account
maiden needle
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I don’t really think so. If I use on behalf of I’m no longer the merchant of record

pallid monolith
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That doesn't matter

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In terms of where the data is stored

granite ventureBOT
maiden needle
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I don’t think data being stored is the important part though

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I come from using NMI and other processors. If I have a MIT for a connected account, I must create a separate CIT on that connected account.

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How does Stripe fulfill these CIT/MIT requirements if I only have 1 customer and only create 1 setupintent

pallid monolith
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Where the data is stored is the fundamental apsect of which flows require objects on which accounts

maiden needle
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I definitely believe you're right that data is an important aspect, but Mastercard & Visa regulate that in order for a merchant initiated transaction (hotel charging the card on file), the card must initially have a customer initiated transaction tied to the specific merchant of record (i.e. tied to the connected account). So if I only ever create 1 setupintent, sure the data flow model makes sense, but how does Stripe remain compliant with Mastercard & Visa?

pallid monolith
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We cannot speak to compliance issues here on this server.

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What I can tell you is that we have many platforms using Destination Charges with on-behalf-of setting the Connected Account as the merchant of record but only creating Customers/Payments on the Platform Account

maiden needle
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Ok and to confirm since it’s on the platform, I only need to create one setupintent ever, right? Is there a way I can lookup if a setupintent has already been created for a paymentmethod?

pallid monolith
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That wording doesn't really make sense. Setup Intents are only intended to create the Payment Method.

maiden needle
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There is the parameter:

image.png
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Setup intent has more than just creating a payment method. It should also trigger 3DS and authorization. this is standard across other payment processors. You create a card in a vault then perform authorization on it - those are typically separate steps on other systems, but stripe likes to combine them together.

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But allow me to ask the question in a different way: If I use the setupintent api once, do I ever need to pass the payment method through the setupintent api again, especially if I will be using on_behalf_of with my connected accounts?

vestal ore
maiden needle
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Hi @vestal ore thanks for your help! So in the rest of the payments processor world (NMI, adyen, etc), my impression is that if I am working with different connected accounts, who are the actual merchant of record, I need to create a setupintent per-connected account. Can you help understand how with stripe and different connected accounts each with their own MoR, I only have to create 1 setupintent? 🙂

vestal ore
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Looks like my colleague explained the flow to you.

maiden needle
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Are you referring to the data comment?

vestal ore