ezeteja.connect-billing

[wispy aspen]

Hey! Yes, this is absolutely possible with Connect. This doc is a good starting point: https://stripe.com/docs/connect/subscriptions

How you configure that will depend on your business model and the desired flow of funds. For example, you might use direct charges with Standard connected accounts where the seller is the merchant of record

[sonic plank]

Hi Ynnoj! Thanks! Taking a look as we speak.

There are a couple of flows.

The first flow, is the seller selling a subscription to each business and that subscription is split between the seller and the platform. Then, there is a second flow that belongs to the business, when they sell a service/item, the business should be the merchant of record.

What's the difference between creating a subscription with direct charges to the sellers, and setting an application fee percent?

[wispy aspen]

Yep, that is possible.

What's the difference between creating a subscription with direct charges to the sellers, and setting an application fee percent?
I think firstly it's importantly to understand the types of Connected accounts: https://stripe.com/docs/connect/accounts

You can use application fees with Direct Charges and Destination Charges. The key difference really is the responsibility of the payment (settlement merchant). As a platform, do you want to deal with disputes/refunds etc, or should that be the responsibility of your customers (the businesses)?

[sonic plank]

🤔

[wispy aspen]

In your example it sounds like your connected accounts (businesses) would be Standard accounts, meaning they can process their own payments independent of your platform

[sonic plank]

There are four actors here. The Platform, The Seller, The Business Owner and The Client.

Business Owners subscribe to the platform through the seller. Each Subscription is split between the platform and the seller.

Also, the Business owners can charge their Clients for their services/items on their own.

[wispy aspen]

And then you can create your subscriptions with direct charges (where the business is merchant of record), and take a application fee for the platform

Ok, so that complicates things as I understand it as essentially there's another Stripe account in the mix:

Platform --> Seller (Standard connected account, also a Platform) --> Business (Standard connected account) --> Customer (non-Stripe party)

[sonic plank]

Correct

On this part: "Business (Standard connected account) --> Customer (non-Stripe party)"

I'm not interested in charging anything to the business.

I'm interested in splitting the subscription between the business owner and the seller.

[wispy aspen]

In that scenario:

1. Platform can create Subscriptions using direct charges (and application fees) on behalf of Seller for the Business
2. Business can then make charges to their customer independent of the Platform and Seller

[sonic plank]

it could be the business owner subscribing to the platform (ideal) or to the seller (and charge the seller for the platform cut)

[sonic plank]

Correct

[wispy aspen]

It's definitely possible 🙂

[sonic plank]

What I want to know, (Not exactly the code, but the big picture)... is... how do I implement it? As far as I understood is like this.

I already have an account for the platform, with a product and a price.

When a seller creates an account in the platform I automatically create a Standard account for them following this step: https://stripe.com/docs/connect/standard-accounts#create-account and this step to link seller's account with platform's: https://stripe.com/docs/connect/standard-accounts#create-link

The last step will redirect the seller to the onboarding page, when it finishes it will come back to the platform.

I will have an endpoint listening for a webhook on "accounts.updated" (Which account? Platform's or Seller's?) - Platform's

[wispy aspen]

I will have an endpoint listening for a webhook on "accounts.updated" (Which account? Platform's or Seller's?)
On the Platform account: https://stripe.com/docs/connect/webhooks

[sonic plank]

Then the when the business owner registers to the platform and refers the seller I create a subscription like this: https://stripe.com/docs/connect/subscriptions#direct passing the seller's accountId as the value in the "stripeAccount" property.

Correct?

[wispy aspen]

Hmm, you'd need to do it the other way. So the Seller creates the subscription and you pass the business acct_xxx

[sonic plank]

ok, so how do I create the subscription with the seller's account?

[wispy aspen]

You'd use their API keys

[sonic plank]

All right, is there a way that I can do that, or I have to ask each seller for the API Key?

That's what confuses me.

[wispy aspen]

Yeah it's tricky alright

Ultimately you don't want to be handling API keys of connected accounts

Another option would be to look to separate charges & transfers, with the Platform creating the subscription and transferring to the relevant accounts

[crisp raft]

Hey @sonic plank 👋 I just wanted to circle back and see if there were any outstanding questions that you're still looking for answers to?

[sonic plank]

🤔

Thanks for checking in, Toby.

[sonic plank]

I think this is a better idea.

So the platform will handle the subscription, and transfer the part to the sellers, is that correct?

[crisp raft]

Yes, in this scenario the platform makes the subscription and handles the charge, then when you're ready to pay out to your seller's you'd create a transfer to move the specified amount of funds to them.