Michel_P | Stripe Developers | Page 1

split escarp Nov 29, 2021, 11:13 PM

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@sacred terrace Please continue your message here 🙂

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@sacred terrace I'm pasting your message here:
Sorry, went too fast! My company offer a B2B app and we have Connected Accounts that send invoices to their customers and are getting paid with credit cards with Strip. Each time we do a payout for these Connected Accounts, we get billed by Stripe with Payout Fees. We would like to pass these fees directly to our connect accounts. I was in contact with Stripe Support and they told me that : '' There is no way within Stripe for the platform to automatically pass connect fees on to their connected accounts; it must be manually calculated''. What we are trying to do is as follow, let's say the deposit is for $100 and they payout fees are $1.00, we would like the deposit to be $99 (net of payout fees). It seems like someone built a custom integration to pass the fees directly to their connected accounts. Can someone help me here?

split escarp Nov 29, 2021, 11:42 PM

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What kinds of charges are you working with ? DIrect? Destination?

sacred terrace Nov 30, 2021, 12:25 AM

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Not really a charge by a fee charged by Stripe each time we do a payout for a Connected Account based on their payout schedule. The fees are charges to us, not the account

split escarp Nov 30, 2021, 12:26 AM

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Sorry let me clarify - I asked what kind of charges you were working with because the solution here is to really just build that fee into whatever fee you're taking from the connected account at the time of the charge. There isn't really a great way to do it automatically per-payout

sacred terrace Nov 30, 2021, 12:36 AM

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Sorry, thank you for the clarification. Direct is the answer. In our business model, we charge our Connected Accounts 2.9% + $0.30 per credit card transaction. Our agreement with Stripe allows us to make some money on each transaction. In our industry, we cannot charge over the listed Stripe fee for a credit card transaction. That's why we were looking at passing the payout fees to our accounts. We cannot just add on top of the standard fees per transaction.

split escarp Nov 30, 2021, 12:46 AM

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If taking the fee out per-charge isn't possible then the only other option would be to use account debits to debit the connect account some amount

sacred terrace Nov 30, 2021, 12:53 AM

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Is this the only way? What are the best practices you have seen with our companies with a similar setup? I cannot imagine we are the only one working with Connected Accounts the does not want to assume the payout fees?

split escarp Nov 30, 2021, 1:00 AM

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If you can't take them as part of the application fee per charge, then I do think this is the only way

sacred terrace Nov 30, 2021, 1:13 AM

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Can I ask you to ask other members of the team? We cannot charge a variable rate for each transaction. Stripe knows the fees associated with each payout. Let's say if I was a regular merchant using your payment solution. For each payout, I would see my volume, minus the fees for my credit card transaction, minus the payout fees. Just to illustrate using simple numbers, if this merchant volume was $1,000 and the cc fees were 3% and the payout fees 1%, the net deposit for this merchant would be $960 ($1,000 - ($1,000 * 3% - $1,000 * 1%)).

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That's what we are looking for. Right now, our merchant deposit using the example above would be $970 and we are getting charged $10 for the payout fees.

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So why cannot Stripe charge the payout fees to a connected accounts like they would for a direct merchant?

split escarp Nov 30, 2021, 1:15 AM

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Payout fees are taken on a monthly basis - not per payout

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My teammate @raven crow is going to step in, but I do think you're very limited in your options here

raven crow Nov 30, 2021, 1:18 AM

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👋

sacred terrace Nov 30, 2021, 1:19 AM

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Thank you for your assistance Karbi

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@raven crow I understand there might not be an API I can use for that, but the support team told us, quote ''We have customers that are doing this that have built custom integrations in order to pass the fees on directly to their connected accounts. ''. Can you let me know what the custom integration look like?

raven crow Nov 30, 2021, 1:30 AM

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Hi, that sounds odd to me/my team. Did they explicitly say payout fee?

sacred terrace Nov 30, 2021, 1:34 AM

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yes, there is a long email thread I can share if necessary but we were only talking about payout fees for Connected Accounts.

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we have done other integration with payment services provider in the past and this was possible (and very easy to do!). You have a superior plateforme in many aspects. If this is not natively supported, what are other companies doing?

raven crow Nov 30, 2021, 1:47 AM

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(sorry I am in MTG so I could be slow) I feel it's odd, sorry of repeating, because my team knowledge is that there's no way around other than debit the connect account some amount later

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Debit the connect account is the flexible way to make up for any adjustment you want, so I think it's good enough 🤔

sacred terrace Nov 30, 2021, 1:50 AM

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what does MTG means?

raven crow Nov 30, 2021, 1:50 AM

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meeting

sacred terrace Nov 30, 2021, 1:51 AM

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I see, sorry! no worries.

raven crow Nov 30, 2021, 1:52 AM

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Could you ask Support what custom integrations they are mentioning? I doubt they are talking about the same thing about debit the connect account, but it's a bit vague in their sentence

sacred terrace Nov 30, 2021, 1:52 AM

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I will have to discuss with my management team tomorrow. if you can share what other companies are doing, that would be great.

#Michel_P