weretaco-custom-invoice | Stripe Developers | Page 1

west storm Nov 2, 2021, 4:08 PM

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When you refund the charge, there should be a UI option asking if you want to reverse the transfer and/or refund the application fee

bright mulch Nov 2, 2021, 4:09 PM

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oh i think i see what i was doing wrong

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i was doing a "credit note" not a refund

west storm Nov 2, 2021, 4:11 PM

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gotcha

bright mulch Nov 2, 2021, 4:14 PM

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so if i have a charge for $500, customer pays

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stripe fee is $14.80, application fee collected is $15.20

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when i do the refund if i do not select "refund application fee" and just reverse transfer

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does the customer still get $500 back? we just don't refund the application fee to the connected account? so it's left with a negative balance?

west storm Nov 2, 2021, 4:16 PM

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all yes

bright mulch Nov 2, 2021, 4:16 PM

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perfect, so the connected account still eats the cost of the stripe fees and the refund happily goes to customer

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then we can still true up the application fee vs stripe fee on our regular schedule

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(custom pricing so we're overcollecting the app fee to cover IC fee variations)

west storm Nov 2, 2021, 4:18 PM

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so the connected account still eats the cost of the stripe fees
No you eat the Stripe fee

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With Custom you do destination charges so you pay the fee

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but if you transfer the whole amount (and don't use transfer_data[amount]) they end up covering for it in case of a refund

bright mulch Nov 2, 2021, 4:19 PM

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yes, but since we're not refunding the application fee to the connected account, that covers the amount

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a bit ?

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and the connected account would sit with a net negative balance to account for that application fee

west storm Nov 2, 2021, 4:19 PM

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yes

bright mulch Nov 2, 2021, 4:20 PM

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awesome thanks

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if the connect account has a negative balance sitting there, does the platform automatically transfer to cover it or can it pull from the connect accounts bank ?

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is there a setting for it?

west storm Nov 2, 2021, 4:25 PM

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the balance covers it, you likely want to read https://stripe.com/docs/connect/account-balances

bright mulch Nov 2, 2021, 4:25 PM

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ok

quaint hollow Nov 2, 2021, 4:31 PM

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Regarding this, if you initiate a transfer reversal due to the initiation of a refund, and the refund fails, it seems like you'd need to create a new transfer as well?

west storm Nov 2, 2021, 4:37 PM

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correct, or figure out how to refund the customer on your own

quaint hollow Nov 2, 2021, 4:41 PM

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Seems it's better to wait for the refund to go through before reversing the transfer than try to managed transferring back and forth. Is there any stripe recommendations on this?

west storm Nov 2, 2021, 4:44 PM

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IMO you want to reverse the transfer immediately. Refunds rarely fail and it's harder to get funds back from your connected account over time

#weretaco-custom-invoice