badr-connect | Stripe Developers | Page 1

thorny lantern Dec 14, 2021, 10:34 AM

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@gentle flame hi! What would that mean exactly?
on a payment it's like
customer pays $100, you have a fee of $10. The connected account gets $85("100-10-<stripe fee e.g. 5>") and you get $10.

what would happen with a refund? The customer gets back $100 and then what would happen with you and the connected account?

gentle flame Dec 14, 2021, 10:41 AM

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in my perspective, the customer would get back their 100$, then we would get 10$ back because that's the fee. In the end, the connected account would end up "losing" 110$

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so for us we need to define extra charge on the connected account for that refund . . but seems like that is not possible

thorny lantern Dec 14, 2021, 10:46 AM

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correct. You can't just get $10 from nowhere as part of this flow

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there are options here I think but it depends how exactly you use Connect(like do you use Direct or Destination Charges for instance)

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might be easiest if you have an example ID (ch_xxx / pi_xxx ) of an example payment you've ran so I can see how you do things

gentle flame Dec 14, 2021, 10:49 AM

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ch_3K1tKJIzQrXzOQ2M1FV2IKOf

thorny lantern Dec 14, 2021, 11:00 AM

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ok so that's a Direct Charge with a Standard account

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so the way refunds work is the connected account issues them. So it's :

on payment :

customer pays $100, you have a fee of $10. The connected account gets $85("100-10-<stripe fee e.g. 5>") and you get $10.
refund : customer gets $100, the connected account goes -$100, so they end up NET -$15.
for your $10 : in the above, nothing happens, you keep that. There's an option you have which is reverse_application_fee when creating the refund in the API, which would send your $10 back to the connected account, so they only NET -$5(Stripe fee) .

But that I think is not what you want. You want them to somehow give you another $10?

gentle flame Dec 14, 2021, 11:13 AM

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Yes, that would be the idea. That they would end up paying extra to perform the refund, which would end up with them having a negative net in the end even bigger. i'm guessing that's not possible?"

thorny lantern Dec 14, 2021, 11:17 AM

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with Standard accounts, not really. For other account types you can potentially do a separate AccountDebit to take $10 from them(https://stripe.com/docs/connect/account-debits) but for Standard it's not allowed because of the liability issues involved in letting a platform make another Stripe user accumulate negative balances.

One solution is probably a 'ledger' in your system where you just increase your application fee proportionally in future charges with that connected account so that you make the extra $10 that way.
Or if you collect payment details from the connected account holder, you can directly use a PaymentIntent on your platform to charge those details and get $10. There's no real link in the Stripe API there, but in your system you can connect that payment and the connected account together.

#badr-connect